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

Stock MarketsDec 09, 2021 10:45
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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

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