Written by Amy Legate-Wolfe at The Motley Fool Canada
It might not seem possible, but it in fact is. There are growth stocks out there that are also blue-chip companies. Today, we’re going to cover two growth stocks that have been climbing significantly this year, but are due for even more growth in the decade to come.
One of the top stocks investors should consider among growth stocks is Canadian Pacific Kansas City (TSX:CP). CP has gone through significant changes within the last decade, but is due for even more in the next 10 years.
After Hunter Harrison took over CP stock, the company went through a series of cuts and reconfigurations to put cash back on the books. Once done, the company went on to create massive investments, increasing its bottom line in the process.
Yet its largest investment was through the acquisition of Kansas City Southern. This is what caused shares to climb this year, as the United States Surface Transportation Board (STB) approved the merger. Shares have climbed 10% in the last year alone, but even higher over the last five by 98%!
As the merger continues to come online, CP stock will be the only railway to run from Canada down to Mexico. This has already added new revenue streams, with more underway. Therefore, there could certainly be even more growth from growth stocks like this in the next decade.
Another of the growth stocks to consider in the next decade is Dollarama (TSX:DOL). This stock has been growing for quite some time, but gained speed during the last year. This comes as Canada started to see its economy weaken. Dollarama stock tends to see an uptick in use as inflation and interest rates rise.
This happens because Canadians look for ways to reduce costs, seeking out Dollarama to bring costs down. The company has seen more growth in the last year because of this, but was doing quite well beforehand as well.
Dollarama stock has continued to see organic growth over the years, even during the pandemic. The retail stock was able to remain open as an essential service, allowing the stock to continue growth even during this difficult time. From there, the stock went on to continue its path to growth through store openings.
Shares are now up 6% in the last year, and 113% in the last five years! As the company continues to grow through store sales and the expansion of projects, there is certainly more opportunity for share growth as well. The next 10 years could look quite good for this growth stock as well.
These two growth stocks have been through a lot in the last decade. A pandemic, economic downturn, and more haven’t slowed them down. Indeed, each of these growth stocks has gone on to grow even further.
And they have the potential to double in share price once more in the next decade, as both of these stocks have done in the last five years alone. So if you’re looking for two blue-chip companies due for more growth among growth stocks, these two are certainly the ones to consider.
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