2 Stocks That Could Turn $100,000 Into $1 Million

When it comes to winning growth stocks, these two have made millionaires time and again.

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Investing in the stock market often feels like searching for hidden gems, but a few companies have turned the spotlight on themselves with incredible growth stories. Among them, goeasy (TSX:GSY) and Constellation Software (TSX:CSU) have proven their ability to deliver exceptional returns. Both stocks have previously turned $100,000 into $1 million and could be poised to repeat that feat.

goeasy

First, goeasy stock is a standout in Canada’s alternative financial services industry. This company has carved a niche by providing leasing and lending solutions to individuals who may not qualify for traditional bank credit. Over the past decade, goeasy stock’s share price has skyrocketed by approximately 660%, which translates into a $100,000 investment growing to $760,000, even before accounting for its steady dividend payouts. Add those dividends into the mix, and the returns look even better.

In its latest earnings report, goeasy stock demonstrated why it continues to shine. The company posted a 29% increase in earnings per share (EPS), building on the previous quarter’s 14% growth. While revenue growth decelerated slightly from 9% to 5%, these figures still indicate solid performance, especially in a challenging economic environment. Investors are eagerly awaiting goeasy stock’s next results, due at the end of January, to see if this upward trajectory continues.

Looking ahead, goeasy stock’s growth strategy focuses on geographic expansion and product diversification. It aims to broaden its reach in Canada while dipping its toes into U.S. markets. By staying committed to serving non-prime consumers, goeasy stock has positioned itself to capitalize on an underserved market with enormous potential. Analysts remain bullish, projecting that goeasy stock’s innovative approach and consistent growth could lead to another stellar decade.

Constellation

Constellation Software is a titan in the tech sector, specializing in acquiring, managing, and growing vertical market software businesses. Over the last 10 years, its stock price has achieved a compound annual growth rate (CAGR) of about 30%. This level of consistent growth means a $100,000 investment made a decade ago would now be worth over $1 million. Constellation Software’s incredible ability to scale through acquisitions has been a game-changer.

Its most recent earnings report further validated its prowess. The company reported impressive revenue and earnings growth, thanks to its continued focus on acquiring software businesses that are critical to their industries. Constellation’s steady financial performance, even in turbulent markets, demonstrates the durability of its business model and its knack for finding high-margin opportunities.

The future for Constellation Software looks equally promising. The company’s strategy of acquiring mission-critical software businesses with stable cash flows remains a winning formula. By focusing on under-the-radar software companies with solid customer bases, Constellation ensures a recurring revenue stream. As technology continues to play a central role in every industry, Constellation’s growth opportunities are boundless.

Bottom line

Both goeasy stock and Constellation Software have built robust track records of delivering remarkable shareholder value. While past performance sets a high bar, the business models and growth strategies suggest that future success is well within reach. There’s goeasy stock’s focus on underserved financial markets and Constellation’s dominance in software acquisitions providing each with a competitive edge that’s hard to match.

However, investing in these stocks isn’t without risks. There’s goeasy stock’s exposure to consumer credit markets could be challenged by rising interest rates, while Constellation’s growth depends heavily on its ability to continue identifying and integrating valuable acquisitions. Nonetheless, leadership and proven resilience give them a strong footing.

In summary, these two stocks have demonstrated an ability to create immense wealth for patient investors. With proven strategies and promising outlooks, both goeasy stock and Constellation Software have the potential to once again turn $100,000 into $1 million, making them exciting picks for growth-oriented investors. Of course, as with any investment, due diligence is key. These stocks make a compelling case for those ready to watch their portfolios grow exponentially.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

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