Breaking News
Close
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Forget Shiba: Buy These 2 Growth Stocks Instead for Massive Returns

Stock MarketsDec 09, 2021 10:45
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Forget Shiba: Buy These 2 Growth Stocks Instead for Massive Returns

Shiba Inu is an Ethereum-based alt coin that’s grabbed a lot of headlines this year. Investors that rode the coin from $0.00000006 in April to a staggering $0.00008 in late October saw massive gains. However, since hitting its peak, Shiba Inu has been on a downward spiral. Many investors (I use this term loosely) are now jumping on the coin in hopes of catching another major move upwards. However, I believe the majority of those individuals are just speculating and could be in for major losses.

The issue with alt coins, and other cryptocurrencies, is that it’s very difficult to assess whether it would make a good investment. Unlike businesses, investors don’t have earnings or any other figures to build a thesis around. All of the movement surrounding cryptocurrencies depends on investor sentiment. As a result, it’s very hard to make an educated guess regarding these assets. Instead, investors should stick to growth stocks if they aspire to make massive returns.

Even great growth stocks that seem to be in a slump could be great investments in the long run if the numbers behind the business make sense. In this article, I’ll discuss two growth stocks that investors should consider buying instead of Shiba Inu.

Investors interested in e-commerce should give this company another look I firmly believe the e-commerce industry will continue to grow at an impressive pace over the next decade. Over the past year, we’ve seen its penetration accelerate dramatically around the world as a result of the COVID-19 pandemic. Although I expect growth rates to return to the 20-30% rate, depending on the market within the broader e-commerce industry, this should still result in great returns for investors. One company that investors should consider giving another look is Goodfood Market (TSX:FOOD).

Goodfood Market was a stock market superstar in 2020, gaining more than 300% over the course of the year. However, the stock has since fallen more than 60% since hitting its peak in January. Despite this massive downturn in Goodfood stock, the company’s financials continue to look impressive.

In fiscal year 2017, Goodfood reported $20 million in revenue. By fiscal year 2020, the company managed $285 million in total revenue. This year, even after many consumers have returned to physical shopping locations, Goodfood reported $379 million in revenue. It’s clear that the company is continuing to grow. Goodfood stock rallied an incredible amount last year, and it definitely needed some time to cool off. Now’s a great time to buy shares.

There are few stocks with a more impressive history than this one Companies don’t need to be the flashiest out there to make investors a lot of money. In fact, many investors might think that Constellation Software (TSX:CSU) operates a pretty boring business. For those that aren’t familiar, Constellation acquires vertical market software companies and provides them with the resources and coaching to help turn them into exceptional businesses. Since its inception, it appears that Constellation’s formula for success has worked. Constellation stock has gained 12,000% since its IPO.

Despite those tremendous gains, Constellation Software is only valued at a market cap of $47 billion. That makes it a much smaller company than Shopify (TSX:SHOP), another excellent growth stock. This means that investors could potentially still have a tremendous growth runway to take advantage of. Since its IPO, Constellation stock has grown at a CAGR of about 39%. This year, the stock has gained 36%. This suggests that this growth machine is showing no signs of slowing down.

The post Forget Shiba: Buy These 2 Growth Stocks Instead for Massive Returns appeared first on The Motley Fool Canada.

Fool contributor Jed Lloren owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify. The Motley Fool recommends Constellation Software and Goodfood Market Corp.

This Article Was First Published on The Motley Fool

Forget Shiba: Buy These 2 Growth Stocks Instead for Massive Returns
 

Related Articles

Wall Street ends lower as Cisco and Apple sink
Wall Street ends lower as Cisco and Apple sink By Reuters - May 19, 2022

By Devik Jain and Noel Randewich (Reuters) - Wall Street ended lower after a volatile session on Thursday, with Cisco Systems (NASDAQ:CSCO) slumping after giving a dismal outlook,...

Dow Futures Tick Higher as Recession Fears Loom
Dow Futures Tick Higher as Recession Fears Loom By Investing.com - May 19, 2022

By Oliver Gray  Investing.com - Dow futures were trading slightly higher during Thursday’s evening deals after major benchmark indices extended losses during the regular session as...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
DOWNLOAD APPApp store
Investing.com
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
or
Sign up with Email