NBLY:CC - 3 Growth-by-Acquisition Stocks to Buy and Hold for Years
There are plenty of high-quality growth stocks you can buy for the long haul, especially in the current market environment, when growth stocks have been some of the hardest-hit stocks throughout 2022.
Growth stocks make excellent long-term investments, particularly when you can find high-quality businesses that can constantly expand their operations rapidly.
And while there are many different kinds of growth stocks with all types of different strategies to choose from, some of the best growth stocks over the years have been companies that can rapidly grow their operations by making value accretive acquisitions.
So, if you’re looking for some of the best growth-by-acquisition stocks to buy and hold for the long haul , here are three of the best to consider today.
One of the top long-term growth stocks you can buy
Alimentation Couche-Tard ( TSX:ATD ) has been an exceptional growth stock for years in Canada. And while the company has seen a slowdown in the acquisitions it’s making lately, it’s also been focusing on growing organically. Therefore, it continues to be one of the top stocks to buy now.
One of the reasons Couche-Tard is an exceptional investment is that much of its revenue is defensive. The company owns gas stations and convenience stores in countries all over the world.
Although we face a potential recession on the horizon, many of the goods it sells have inelastic demand, whether that’s gas to fill our cars or popular convenience store items such as tobacco.
Over the last five years, Couche-Tard’s sales have gained a whopping 65%. In addition, its earnings before interest, taxes, depreciation and amortization ( EBITDA ) have nearly doubled.
Therefore, if you’re looking for top Canadian growth stocks to buy and hold for years, Couche-Tard is an excellent choice.
A top pharmacy business growing by acquisition
In addition to Couche-Tard, another similar company, but one that owns pharmacies instead of gas stations and convenience stores, is Neighbourly Pharmacy ( TSX:NBLY ).
Neighbourly has been rapidly acquiring independent pharmacies to grow its footprint across Canada. In addition, it rebrands many of these new acquisitions to help establish brand loyalty and drive organic growth in its sales.
Furthermore, because pharmaceutical sales and other over-the-counter drugs are, in many cases, essential, Neighbourly is another defensive growth stock that you can have confidence buying now, even with a potential recession on the horizon.
Over the last three-and-a-half years, Neighbourly has more than tripled its sales. In addition, it’s more than doubled its gross profit. So, with the stock trading roughly 50% off its high and at the bottom of its 52-week range, there’s no question it’s one of the top growth stocks to buy today.
A top real estate stock that can continue growing through a recession
Investing today requires investors to balance the risk of a potential recession in the short run with the potential that these stocks have to continue growing over the long haul.
However, one stock that could continue to see an impressive growth rate, whether there’s a recession or not, is StorageVault Canada ( TSX:SVI ).
StorageVault owns self-storage facilities all across Canada. In fact, in total, between its self-storage facilities and its thousands of portable storage units, the company owns and operates over 11 million square feet of rentable space.
Plus, not only has StorageVault proven to make attractive acquisitions that help to expand its portfolio well, but self-storage facilities also have a number of advantages, especially in times of high inflation or a potential recession.
Economic turmoil that pressures consumers’ budgets can actually create demand for self-storage space. In addition, these real estate stocks have little variable costs, and because the rental terms are so short, the companies can be a great hedge against inflation.
Therefore, if you’re looking for an attractive growth stock to buy and hold for years, StorageVault has recently sold off from its high, making it an attractive option for investors today.
The post 3 Growth-by-Acquisition Stocks to Buy and Hold for Years appeared first on The Motley Fool Canada .
Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alimentation Couche-Tard Inc.
2022