Written by Adam Othman at The Motley Fool Canada
100% growth in five years is not a tall order. There are plenty of reliable growth stocks trading on the TSX that can offer this level of growth. But if you are looking for stocks that can more than double your money in the next five years and take you deeper into triple-digit-gains territory, the list might become smaller. There are three potential stocks on that list that you should keep an eye on.
A disgraced growth stock
Disgraced might be a harsh word to describe Cargojet (TSX:CJT) stock, but 2021 has been one of the worst (if not the worst) years for investors of this cargo airline. The stock has actually dropped about 8% in the last 12 months, and it’s not showing any signs of recovery. The company is facing some trouble with the pilot’s union, but that’s not problematic enough to keep the stock at this level.
Cargojet is a key player in the North American e-commerce industry and has healthy relationships with Amazon, the giant of the industry, which should have kept the stock afloat alongside other thriving e-commerce stock in Canada, especially considering its amazing history. One factor might have been the stock’s too rapid a rise in the last few years, and what we see now is just a long-winded, long-due correction.
Still, Cargojet has amazing growth potential, and if anything triggers another uptake, and the stock gains enough traction to replicate its last five-year growth, you might see returns somewhere between 300% to 400%.
A venture capital stock
StorageVault (TSXV:SVI) is an amazing growth stock, and its consistent growth is more akin to larger, blue-chip TSX growth stocks than the small-cap venture capital stocks that offer growth “spikes.” The company has been growing quite consistently over the last five years and has returned over 400% to its investors in about half a decade.
Its strength also comes from the fact that it’s a leader in a very niche real estate market: storage spaces. It’s an evergreen real estate segment, and if we believe SVI’s reports on the rising value of this asset class, it’s generously rewarding.
The company has risen to the mid-cap valuation, and its consistent growth has also made the stock quite overvalued. Still, if it can maintain its growth pace for the next five years, the stock can easily offer you about 400% capital appreciation.
An energy stock
Terravest (TSX:TVK) is another consistent growth stock. It’s not as rapidly growing as StorageVault is, but it’s also available at a much lower price. The company has returned about 243% to its investors in the last five years, and even though it’s part of the energy sector, which saw a lot of trouble in the last few years, Terravest has remained consistently rewarding.
Part of the reason for its dissent from the rest of the energy sector is that it’s not as exposed to oil (which has been the “black” sheep of the sector for some time) as most energy stocks are. Terravest makes specialty containers, vehicles, and other equipment for the energy sector, but through one of its products, it has also gained exposure to the business-to-consumer market. It’s a bargain at its current price and capable of tripling your money in the next half-decade.
All three powerful growth stocks can help you get triple-digit gains in the next five years if they can maintain (or, in the case of Cargojet, reclaim) their growth patterns. The companies also have decent positions in their respective markets, and all are financially stable. And if they can maintain their growth streaks for longer, the returns they can offer over one or two decades could be quite enormous.
The post 3 Stocks to Buy for Triple-Digit Gains in the Next 5 Years appeared first on The Motley Fool Canada.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and CARGOJET INC. The Motley Fool recommends TerraVest Industries Inc and recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon.