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Growth stocks had their time in the sun over the last few years, but now, investors pretty much want nothing to do with them. Yet if you’re looking for long-term investments from some strong long-term holds, right now could be the best time for growth stocks.
If you were waiting for stocks on your watchlist to drop by 5% or even 10%, there are many offering those drops right now. Remember: overall, the market trends upwards. So, if you choose the right growth stocks, you could see your shares soar in the next year and beyond.
That being said, it does come down to choosing the right growth stocks. So, here are five stocks in sectors that I would consider prime for growth in the next year and beyond.
Cybersecurity
Cybsecurity became incredibly important during the pandemic and remains so today. With many employees working from home, data needs to be kept secure — especially if you work for a global enterprise.
Therefore, there are growth stocks in this sector that have fallen but are due to climb once more. In this case, there are two that I would recommend for those seeking substantial growth in the next few years.
First up, there’s Open Text (TSX:OTEX), which provides cloud storage and cybersecurity to some of the biggest companies in the world, including Alphabet. But the other reason I would consider this stock is because it continues to grow steadily thanks to steady acquisitions.
Shares are down 35% year to date, offering a substantial opportunity to buy up the stock today. Plus, it’s one of the few tech stocks that’s been around for decades. In the last decade alone, shares have climbed by 237% — a compound annual growth rate (CAGR) of 12% as of writing.
Then there’s BlackBerry (TSX:BB), which, granted, has had some volatile times during the last few years. The company became a victim of the meme stock trend on WallStreetBets. This led to prices soaring and then collapsing. However, the company is a stellar example of a company that could soar in the next few years.
That’s again thanks to strong partnerships and the growth of its cybersecurity arm, both organically and through acquisitions. Shares are down 47% year to date, and this is a strong choice for the future of cybersecurity.
Healthy growth stocks
The healthcare sector is another sector that’s boomed in the last few years due to the pandemic. However, this connection turned negative when a vaccine was introduced, causing shares to drop. Yet again, this presents a strong and stable future growth opportunity.
In the case of WELL Health Technologies, there is certainly a strong opportunity. The telehealth provider continues to grow organically and through acquisitions across North America. It’s now the largest outpatient clinic in Canada. And even with record-setting earnings, shares are down 40% year to date.
Then there’s NorthWest Healthcare Properties REIT (TSX:NWH.UN), which was doing quite well until just recently. Yet this is related to the rise in interest rates that could affect real estate investment trusts (REITs). Still, the company continues to post record results, especially because of its long-term lease agreements that continue to expand. Oh, and with shares down 22% year to date, there’s also a nice 7.82% dividend to consider.
Tranportation growth
Finally, the last of the growth stocks isn’t one you might have originally considered. That’s because it’s not actually doing that bad. And that company is Canadian Pacific Railway (TSX:CP). CP stock is actually up 14% year to date, but shares should continue to rise even higher in the years to come.
This comes from the company getting through the cutting stage and is now on to the growth phase. And part of that growth is the recent purchase of Kansas City Southern. While we’re still waiting on full approval, it’s looking quite likely. This would create even more revenue from the only railway that runs from Canada down to Mexico.
With analysts believing shares could double in the next year alone, this is certainly one I would pick up and hold for decades.
