$20,000 in These Best Canadian Stocks Could Make You a Millionaire

The best Canadian stocks for long-term growth include WELL Health Technologies (TSX:WELL) and Maxar Technologies (TSX:MAXR)(NYSE:MAXR).

| More on:

A 50-fold return is ludicrously rare. However, some of the best Canadian stocks have delivered this in recent years. If you’d invested $20,000 in Constellation Software in 2008, you would have a million dollars now. A similar amount in Shopify stock invested in 2015 would be worth $710,000 today. 

Even relatively boring stocks, such as Descartes Systems Group, have delivered this return, albeit over a longer time horizon (17 years). So, a 50-fold total return isn’t as absurd as it might seem.

A 50-fold return

I believe the best indicator of a multi-bagger is the difference between a company’s market value and its market potential. 

For example, enterprise software and e-commerce were both multi-trillion-dollar industries, which is why Constellation Software and Shopify had so much room to grow. Good execution eventually got them there. 

Similarly, I believe the next big multi-bagger could emerge in the space tech or health tech industries. Both are monumentally huge and have little to no competition. With that in mind, here are two of the best Canadian stocks that could make you a millionaire before retirement. 

Best Canadian growth stocks

WELL Health Technologies (TSX:WELL) and Maxar Technologies (TSX:MAXR)(NYSE:MAXR) are my top picks. 

WELL Health’s capital-light business model and focus on telemedicine are particularly attractive. The company already has a network of tech-enabled clinics and a wide user base of its cloud-based medical records platform. The global healthcare industry is both unimaginably huge and noticeably ripe for disruption. 

WELL Health stock has already delivered a 24-fold return since it was listed five years ago. Another 50-fold return over the next decade or so cannot be ruled out. At the moment, the company is worth $351 million and is trading at 3.5 times forward sales. 

Conversely, Maxar Technologies has destroyed value over the past five years. The company has been shrinking and struggling with a hefty debt burden. However, now its balance sheet seems to have stabilized. By moving its headquarters to the United States, the company has access to U.S. government contracts, which should improve its cash flow. 

In other words, Maxar is a turnaround story. But it’s a company worth $1.4 billion in an industry that could be worth more than a trillion by 2040. The company could achieve this by solving its debt issue and winning a few major contracts. Alternatively, a buyout from either a larger competitor or private equity firm could also unlock value.

Either way, this is one of the best Canadian stocks for growth-hungry investors. Investment legend Michael Burry also owns a stake.

Bottom line

WELL Health and Maxar Technologies are the best Canadian stocks for investors looking to make dramatic returns over the next decade. Both companies are relatively tiny compared to their market potential. They also operate in industries that are difficult to break into, which means competition is less fierce. 

A $20,000 investment in either could turn into a million within a decade.

I already own WELL Health in my portfolio and am seriously considering adding Maxar to my long-term portfolio soon. After all, who doesn’t want to be a millionaire?

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 Vishesh Raisinghani owns shares of WELL. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Constellation Software, Shopify, and Shopify. The Motley Fool recommends MAXAR TECHNOLOGIES LTD.

More on Tech Stocks

investment research
Tech Stocks

Is OpenText Stock a Buy, Sell, or Hold for 2025?

Is OpenText stock poised for a 2025 comeback? AI ambitions, a 3.8% yield, and cash flow power make it a…

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Emerging Canadian AI Companies With Big Potential

These tech stocks are paving the way to an AI-filled future, but still offer enough growth ahead for a strong…

Read more »

Young Boy with Jet Pack Dreams of Flying
Tech Stocks

Is Constellation Software Stock a Buy, Sell, or Hold for 2025?

CSU stock has long been a strong option for high growth, high value stocks. But are there now too many…

Read more »

An investor uses a tablet
Tech Stocks

Canadian Tech Stocks to Buy Now for Future Gains

Not all tech stocks are created equal. In fact, these three are valuable options every investor should consider.

Read more »

dividend growth for passive income
Tech Stocks

2 Rapidly Growing Canadian Tech Stocks With Lots More Potential

Celestica (TSX:CLS) and Constellation Software (TSX:CSU) are Canadian tech darlings worth watching in the new year.

Read more »

BCE stock
Tech Stocks

10% Yield: Is BCE Stock a Good Buy?

The yield is bigger than it's ever been in the company's history. That might not be a good thing.

Read more »

Happy shoppers look at a cellphone.
Tech Stocks

So You Own Shopify Stock: Is it Still a Good Investment?

Shopify (TSX:SHOP) stock has had a run, but there's still room to the upside.

Read more »

A person uses and AI chat bot
Tech Stocks

AI Where No One’s Looking: Seize Growth in These Canadian Stocks Before the Market Catches Up

Beyond flashy headlines about generative AI, these two Canadian AI stocks could deliver strong returns for investors who are willing…

Read more »