2 Top TSX Growth Stocks to Buy Today and Hold for 10 Years

Given their long-term growth prospects and discounted valuations, these two growth stocks could deliver multi-fold returns in the long run.

| More on:
woman retiree on computer

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Growth stocks have the potential to increase their financials above the industry average, thus delivering superior returns in the long run. However, these companies trade at higher valuations as investors are ready to pay premiums on the expectation of higher returns, thus making them riskier. So, investors with higher risk-tolerance abilities and longer investment horizons should invest in these stocks. Here are two top growth stocks that can deliver multi-fold returns over the next 10 years.

WELL Health Technologies

WELL Health Technologies (TSX:WELL) owns and operates a portfolio of primary clinics and also develops technologies to support healthcare providers in delivering positive patient outcomes. After a tough beginning to this year amid a challenging macro environment, the company has witnessed healthy buying over the last few weeks. Its stock price has increased by over 34% since reporting its first-quarter performance.

Created with Highcharts 11.4.3Well Health Technologies PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

During the quarter, the company’s top line grew by 37% driven by organic growth and acquisitions. Meanwhile, its gross margins contracted from 50.9% to 44.1% due to the acquisition of lower-margin businesses. However, its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) and adjusted EPS (earnings per share) grew by 6% and 33.3%, respectively.

After posting a healthy first-quarter performance, the company’s management has raised its 2024 revenue and adjusted EBITDA guidance. The management now expects its 2024 revenue to come between $960-$980 million, while its adjusted EBITDA could be within $125-$130 million.

Besides, WELL Health’s long-term growth prospects look healthy. Clinics have digitized patient records and are adopting management software applications to streamline operations, thus expanding the company’s addressable market. Meanwhile, WELL Health is investing in artificial intelligence to develop innovative products to strengthen its position. Further, the company could also benefit from the increased adoption of virtual healthcare services.

Despite solid buying over the last few weeks, WELL Health’s valuation looks enticing, with its NTM (next 12 months) price-to-earnings and NTM price-to-sales multiple of 16.5 and 1.2, respectively. Given its long-term growth prospects and cheaper valuation, I expect WELL Health to deliver superior returns in the long run.

Docebo

Amid the digitization of business processes and increased penetration of Internet services, the adoption of learning management systems (LMS) has been rising. Meanwhile, Markets and Markets projects the global LMS market to rise at an annualized rate of 18.6% from 2023 to 2028. Given the growth potential in the LMS space, I have chosen Docebo (TSX:DCBO), which offers a cloud-based learning platform to businesses worldwide, as my second pick.

Created with Highcharts 11.4.3Docebo PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Supported by its AI-powered platform, Docebo continues to expand its customer base, which increased from 1,200 in 2017 to 3,832 as of March 31. Its average contract value increased four times during the same period. Besides, the company’s multi-year agreements with its customers and a net dollar retention rate of 104% provide stability to its financials. So, Docebo’s long-term growth prospects look healthy.

Meanwhile, Docebo has been under pressure over the last few weeks amid concerns over the challenging macro environment. It has lost over 32% since reporting its first-quarter earnings. However, given its healthy long-term growth prospects, I believe the pullback offers an appealing entry point for investors with longer investment horizons.

Should you invest $1,000 in Docebo right now?

Before you buy stock in Docebo, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Docebo wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Docebo. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Tech Stocks

Canada day banner background design of flag
Tech Stocks

The Top Canadian Stock to Buy With $5,000 in 2025

There are few Canadian stocks out there that offer the outlook of this tech stock, bound for more growth.

Read more »

ways to boost income
Tech Stocks

How I’d Invest $11,500 in Canadian Fintech Stocks to Revolutionize My Finances

Propel Holdings stock's recent dip could be a trading opportunity for long-term financial gains. Here's why the fintech stock is…

Read more »

Start line on the highway
Tech Stocks

Where I’d Invest $5,000 in Growth Stocks With Long-Term Potential Through 2030

DO you have $5,000 to invest to grow your wealth over the long term? These growth stocks could deliver strong…

Read more »

A shopper makes purchases from an online store.
Tech Stocks

Buy the Dip on the Return of Recession Stocks?

If a recession comes back, there are some stocks that could fair well afterwards. And this is one of the…

Read more »

data center server racks glow with light
Tech Stocks

April Opportunity: Where I’d Invest $7,000 in These 3 Tech Stocks Right Now

These tech stocks have solid growth potential and are trading at discounted valuation, providing a solid buying opportunity in April.

Read more »

The letters AI glowing on a circuit board processor.
Tech Stocks

If I Could Only Buy and Hold a Single U.S. Stock, This Would Be It

You don’t need 40 different stocks to build wealth. A few good ones can boost your portfolio, and this U.S.…

Read more »

cloud computing
Tech Stocks

2 Top Canadian Information Technology Stocks to Buy Right Now

These two Canadian information technology stocks are bargains amid the downturn in the broader market for long-term investors.

Read more »

A microchip in a circuit board powers artificial intelligence.
Tech Stocks

The Only 2 AI Stocks You’ll Need for Long-Term Growth

Here are two top Canadian tech stocks that could help you benefit from surging demand for AI technology and infrastructure.

Read more »