There’s no question that high-quality growth stocks are some of the most exciting investments you can buy. These are companies with the potential to rapidly expand their operations and create significant shareholder value, making them highly attractive.
However, investors often make the mistake of looking for the hottest stocks with momentum in the short run rather than the best companies that can consistently grow their businesses for several years to come.
While the potential of hot stocks can be thrilling, the best investments come from finding companies that can grow steadily for years. These stocks not only offer the promise of long-term capital appreciation but also the ability to compound your returns over time, making them some of the best investments you can make.
That’s why it’s always better to buy growth stocks with solid operations and years of potential rather than the hottest stocks today.
So, if you’re looking for high-quality growth stocks to buy now and hold for years or even decades, here are three of the best to buy now.
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Two of the best defensive growth stocks to buy and hold long term
As I mentioned above, high-quality growth stocks with years of potential are some of the best investments you can buy. However, they become even more compelling when they also have defensive operations and, therefore, provide a level of resiliency, like GFL Environmental (TSX: GFL) and Jamieson Wellness (TSX: JWEL).
GFL is one of the best growth stocks to buy now because it’s a waste management company that has demonstrated its ability to grow rapidly both organically and by acquisition for years now.
Waste management is one of the most important industries in our economy, making GFL’s operations highly defensive. Furthermore, it’s one of the largest waste management companies in North America.
Therefore, as it continues to acquire smaller competitors and integrate the businesses into its own operations, GFL can continue to find synergies and improve its margins.
In fact, in just the last five years, the stock has earned investors a total return of 187%. That’s a compound annual growth rate of more than 24.2%.
Jamieson, on the other hand, develops, manufactures and distributes a wide range of vitamins, supplements, and other natural health products in Canada, the U.S. and internationally. It’s also proven time and again that it can grow its operations both organically and by acquisition.
Therefore, given its consistent growth and the essential products it sells, it’s one of the best defensive growth stocks you can buy now and hold for the long haul.
Analysts estimate that for 2024, it increased its sales by roughly 10%. Furthermore, going forward, the stock is expected to continue increasing its sales by between 9% and 11% for each of the next three years.
So, if you’re looking for the best growth stocks to buy now and hold long term, both Jamieson and GFL’s reliable operations make them some of the top candidates to consider.
A micro-cap stock with massive long-term potential
Finally, if you’re looking for a smaller growth stock with a bit more risk but also a tonne of potential, VerticalScope Holdings (TSX: FORA) is one to consider.
VerticalScope operates a portfolio of online community websites, catering to niche audiences across various interests like automotive, technology, and outdoor hobbies.
This is an intriguing business model because VerticalScope generates revenue through digital advertising and subscription-based services, leveraging its engaged user base and targeted content to attract advertisers and premium members.
Therefore, as it continues to grow and expand its reach, VerticalScope has significant potential to grow shareholder value over the long term.
It’s still a micro-cap stock with a market cap of just over $200 million, which leaves significant room for long-term growth. However, like many micro-cap stocks, it currently receives limited coverage from analysts.
With that said, though, of the four analysts that do cover VerticalScope, three rate the stock a buy, with the fourth calling it a hold. In addition, the average analyst target price is sitting at $14.25, which is a more than 34% premium to where the stock is trading today.
So, if you’re looking for the best growth stocks to buy now and hold for the long haul, VerticalScope is undoubtedly one of the best to consider.
