SHOP:CC - 3 High-Growth Stocks That Could Help You Become a Millionaire
2024-04-15 16:00:00 ET
Investing in the stock market could be your ticket to retiring reach. The good news is that it doesn’t take a whole lot to get started with investing in stocks.
Short-term vs. long-term investing
A key ingredient to building a winning portfolio is the time horizon. The longer you’re invested in the stock market, the more predictable the returns become. Of course, nothing is ever guaranteed when it comes to the stock market. However, there are decades and decades of performance to look back on.
If you plan on making a quick profit in the stock market, you’ll have your work cut out for you. It’s anybody’s guess as to where the S&P/TSX Composite Index will be trading in six months.
Long-term investors, on the other hand, have the luxury of being able to patiently wait through inevitable volatile periods. As a result, instead of trying to time the market, long-term investors can use their time to research quality companies that they’re comfortable holding for many years.
With that in mind, I’ve reviewed three top growth stocks that are destined for many more years of market-beating returns.
If you’re looking to add some growth to your portfolio, these three companies should be on your radar.
Shopify
It’s been a wild ride as of late for one of the country’s largest tech companies. Shopify ( TSX:SHOP ) has traded at all kinds of highs and lows since early 2020.
Today, shares are down more than 50% below all-time highs. Still, the tech stock is up a market-crushing 225% for the past five years.
High levels of volatility are often a price to pay for the chance of earning market-beating growth potential. In Shopify’s case, volatility may be high but so is the company’s ceiling.
Descartes Systems
Descartes Systems ( TSX:DSG ) might not be in as many headlines as Shopify, but there’s a lot to like about this under-the-radar tech company.
For starters, it’s as reliable of a market beater as you’ll find on the TSX. The tech stock has been handsomely outperforming the market for the past 20 years.
In comparison to many of its tech peers, Descartes Systems is trading just shy of all-time highs today. Like many others in the sector, it was hit with a pullback in late 2021 but has since rebounded impressively well.
You can’t pick up shares at a discount right now, but this is not a stock that goes on sale often.
goeasy
To round out this basket, I’ve included a growth stock that’s charging toward new highs. At one point in 2023, goeasy ( TSX:GSY ) was down more than 50% below all-time highs from 2021. Since its lows in 2023 though, shares are up nearly 100%, putting the stock up a market-crushing 250% over the past five years.
This consumer-facing financial services provider began taking a nose dive as interest rates started soaring upward. Consumer demand unsurprisingly dried up as lending became that much more expensive. With interest rate cuts around the corner though, we’ve already seen the stock begin gaining momentum.
Growth investors looking for an alternative to the tech sector should seriously consider goeasy.
The post 3 High-Growth Stocks That Could Help You Become a Millionaire appeared first on The Motley Fool Canada .
Fool contributor Nicholas Dobroruka has positions in Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Descartes Systems Group. The Motley Fool has a disclosure policy .
2024