BB:CC - 2 Top Canadian Growth Stocks That Could Make You Rich in 10 Years
2024-05-15 16:50:00 ET
Are you looking to significantly grow your wealth over the next decade? Focusing on Canadian growth stocks with high potential could be one of the best strategies to achieve that goal. By investing your hard-earned savings in Canadian companies that have proven track records of innovation and expansion, you could earn some eye-popping returns on your investments in the long run.
In this article, I’ll highlight two top Canadian high-growth stocks you can consider buying right now and holding for the next 10 years.
BlackBerry stock
While many Canadian growth companies might offer exponential growth potential, they also come with some risks and volatility. That’s why it might be a good idea to balance your portfolio with some established names that have proven their resilience and innovation over the years. One such stock is BlackBerry ( TSX:BB ), the former smartphone maker that has reinvented itself as a leader in cybersecurity and software solutions today. This Waterloo-artered enterprise software company currently has a market cap of $2.8 billion as its stock trades at $4.73 per share after rallying by 25% in the last three months.
In its fiscal year 2024 (ended in February), BlackBerry’s total revenue jumped 30% YoY (year over year) to US$853 million as it benefited from the recent sale of the legacy beaten portfolio. The company surprised analysts and investors by reporting an adjusted annual net profit of US$31 million against a loss of US$103 million in the previous fiscal year, also beating Street analysts’ expectations of a US$1.5 million loss.
More importantly, BlackBerry’s IoT (Internet of Things) emerged as a standout performer in the quarter ended in February, hitting a new quarterly record of $66 million, up 25% YoY. Its IoT performance benefited greatly from the QNX software, which saw its royalty backlog soaring to an impressive US$815 million due mainly to significant design wins. This clearly highlights the rising adoption of BlackBerry’s technology in the automotive sector and other IoT applications.
With strong growth in the IoT segment, along with the strengthening demand for its artificial intelligence-powered cybersecurity solutions, BlackBerry’s financial growth trends could significantly improve in the next decade, which should help its share prices rally.
goeasy stock
Another Canadian growth stock with remarkable resilience and growth prospects is goeasy ( TSX:GSY ). This Mississauga-headquartered financial services company provides leasing and lending services to subprime borrowers who might face challenges in accessing credit from traditional sources. It currently has a market cap of $2.9 billion as its stock trades at $ 175.94 per share after rallying by around 44% in the last six months.
Even as macroeconomic worries and high interest rates have affected most large financial services institutions in the last two years, goeasy continues to post solid growth. In the 12 months ended in March, the company’s total revenue and adjusted earnings jumped by 24.3% and 25.1% YoY, respectively. While goeasy has been beating analysts’ earnings expectations for eight consecutive quarters, its revenue also has exceeded Street’s estimates for five quarters in a row.
Interestingly, GSY stock has yielded outstanding 824% positive returns over the last 10 years. And the ongoing strength in its financial growth trends and surging demand for its services suggest that it could continue to impress investors in the coming years. Besides that, this Canadian growth stock also offers a decent 2.7% annualized dividend yield, which could act as a source of stable passive income for you.
The post 2 Top Canadian Growth Stocks That Could Make You Rich in 10 Years appeared first on The Motley Fool Canada .
The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy . Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.
2024