3 Long-Term Growth Stocks Every Investor Should Own

Don’t let short-term performance prevent you from long-term gains. These three growth stocks will outdo any new growth you’re considering.

Amy Legate-Wolfe ❯

@amylegatewolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest.

Published September 8, 2022 2:00 pm EDT

Investing can be super fun when it works for you. Some investors are able to find those growth stocks that suddenly soar, and they can brag to friends that they bought shares when those stocks were no more than penny stocks.

But how often does that really happen? Not often enough.

That’s why we see bubbles float up to the sky and then suddenly pop with hardly a warning. Cannabis, crypto, tech — practically every industry has them. And it’s why perhaps it’s time to look at long-term growth stocks instead.

Today, that’s what I’m going to do for you. Here are three growth stocks that have been soaring for years and will continue to do so in the future.

CGI

CGI (TSX:GIB.A)(NYSE:GIB) has been climbing higher and higher over the years thanks to an investment strategy that really works for it. CGI stock is an acquisition powerhouse, buying up software companies and providing them with the tools to thrive. Then the company gets all the glory and the cash.

And so can you! CGI stock has been doing this for decades now and has nailed down this growth strategy. In the last two decades, shares are up 1,588%! That comes to a compound annual growth rate (CAGR) of 15%. Even year to date, shares are only down by 7.77%. And still, shares trade at a fair 17.6 times earnings.

CCL Industries

Another of the top growth stocks to consider is CCL Industries (TSX:CCL.B). This company has a diverse portfolio when it comes to what it can provide. It helps provide media and software solutions, but also creates labels and print materials. In more recent years, it’s expanded into packaging as well as loss-prevention solutions. And all this is provided around the world.

Shares for CCL stock are up 2,314% in the last two decades alone. That’s a CAGR of 17.24% as of writing! It continues to beat out earnings estimates and trades at a fair 19.44 times earnings. And shares are only down by 2.54% as of writing this year, so it’s a great time to pick up the stock for some rebound defence.

Alimentation Couche-Tard

Finally, I would also consider Alimentation Couche-Tard (TSX:ATD) among your growth stocks. This company has also been around for decades and has a clear path to more profits. It’s expanding throughout the world — it reaches as far as Asia. And with more commuting and retail sales going up, Alimentation stock is look for a major recovery.

Shares of the stock are up an amazing 3,134% over the last two decades. That’s an astounding 18.97% CAGR during that time period. It trades at a fair 17.54 times earnings, though it’s up 10% year to date, so you’re not getting as much of a deal.

But, frankly, who cares? If you’re looking at long-term growth stocks, this is a company that has growth in spades. Don’t let some short-term deal prevent you from long-term gains. If these three growth stocks keep at it, there’s no telling where they could soar to next.