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3 Magnificent Stocks That Have Created Many Millionaires, and Will Continue to Make More

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Image source: Getty Images

Written by Karen Thomas, MSc, CFA at The Motley Fool Canada

Millionaire-maker stocks are not easy to find. Even when you think you’ve found one, they usually come with a lot of risk. This is because millionaire-maker stocks usually belong to companies that are chasing uncharted territory, with big upside but also many risks and obstacles to overcome.

In this article, I will discuss three stocks that have already created many millionaires and will likely continue to create more.

Without further ado, here they are.

Constellation Software stock

As an active acquirer of market-leading software and services, Constellation Software Inc. (TSX:CSU) has grown its revenue to $8 billion in 2023. The company’s growth strategy, which includes organic growth as well as acquisitions, has made it an international provider of specialized solutions. Constellation’s customer base is a large and diverse one that serves a number of different industries.

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In fact, Constellation’s revenue has grown from approximately $240 million in 2007 to $8 billion in 2023. That’s an increase of more than 3,200%. This has been accompanied by a just as impressive move in Constellation Software’s stock price.

In the same time period, Constellation Software’s stock has increased from approximately $23 to the current $3,720. That’s an increase of more than 16,000%. Clearly, many millionaires have been made.

I wrote about Constellation earlier this month. In my article, I mentioned that the stock’s valuation is quite high and a little concerning. This is specific to the company but also reflects the general market as well.  Despite any shorter-term weakness that we might see in the stock, I think that on a longer-term basis, it will likely continue its upward climb.

Shopify stock

Shopify Inc. (TSX:SHOP) continues to transform the e-commerce world. We’ve all the seen demand for Shopify’s online e-commerce platforms reflected in its strong revenue growth over the years. Its platform offers a lifeline to entrepreneurs, with benefits including access to different markets, advanced inventory management, and built-in payment processing. Shopify receives transaction fees, which translate into strong cash flows for the company.

Looking ahead, Shopify Capital is an exciting area of growth for Shopify. It’s giving entrepreneurs easy access to funds. Shopify Capital uses data from the entrepreneur’s Shopify store in order to determine eligibility. This is yet another example of a new growth area that Shopify has found. The company continues to expand and find new ways to get involved in the entrepreneurs’ business, all with the goal of facilitating the process and making success happen.

Well Health Technologies

As far as millionaire-maker stocks go, Well Health Technologies Corp. (TSX:WELL) is admittedly in the earlier stages. For those of us who bought Well stock early on, there could have been some who made millions. I mean, the stock went from trading at less than $0.50 at the beginning of 2019, to almost $9 only two years later. It has settled at approximately $3.50 today.

Health care systems are notorious for their inefficient operations that have not taken advantage of the technology that’s available today. Well Health has made it its mission to change this – and it’s working. We can see this reflected in the fact that its business is growing fast and very much in demand. Health care systems are benefiting tremendously from the digitization that Well Health enables.

In the last five years, Well Health’s revenue has grown over 2,000% to $776 million in 2023. The thing that investors need to see before bidding the stock up higher is earnings. And to this point, it seems like we just have to be patient.

In 2024, Well Health is expected to post a net loss of $0.03 per share (up from the previous estimate of a loss of $0.10). Also, in 2025, Well Health is expected to post EPS of $0.17 (up from $0.11), and in 2026 expectations are calling for EPS of $0.40 (up from $0.24).

The post 3 Magnificent Stocks That Have Created Many Millionaires, and Will Continue to Make More appeared first on The Motley Fool Canada.

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Fool contributor Karen Thomas has a position in Well Health Technologies. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

2024