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3 Tech Stocks That Could Make You a Millionaire

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Image source: Getty Images

Written by Rajiv Nanjapla at The Motley Fool Canada

Retiring as a millionaire would be a dream of many. It is not an unachievable dream, provided you are disciplined enough to invest consistently in quality stocks. An investment of just $550 monthly, growing at an annualized rate of 12%, can create wealth of over $1 million in 25 years.

The technology sector offers high growth prospects and thus delivers superior returns in the long run. Here are three stocks in this sector that can deliver over 12% annualized returns in the long run.

WELL Health Technologies

WELL Health Technologies (TSX:WELL) is a tech-enabled healthcare company offering healthcare providers products and services to improve patient outcomes. The growing popularity of virtual healthcare services and digitization of clinical procedures have created multi-year growth potential for the company. Meanwhile, several market research companies predict that the North American telehealthcare sector will grow in double digits for the rest of the decade.

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Amid the expanding addressable market, WELL Health is investing in developing artificial intelligence (AI)-powered products, which could expand its customer base and drive its financials. Besides continuing its inorganic growth, the company acquired 10 clinics from Shoppers Drug Mart. WELL Health has also adopted a cost-cutting program, which could improve its operational efficiency and deliver cost savings.

However, WELL Health has been under pressure over the last few months, losing 31.5% of its stock value compared to its 52-week high. Given its growth initiatives, improving profitability, and discounted stock price, I am bullish on WELL Health.

Lightspeed Commerce

Lightspeed Commerce (TSX:LSPD) is another tech stock that offers high long-term growth prospects. With the increased adoption of the omnichannel selling model, the demand for its products and services is rising. Launching its unified POS (point of sale) and payments initiative has resonated well with its customers, growing the adoption of its payments platform. Besides, its GPV (gross payment value) as a percentage of its GTV (gross transaction value) has increased to 32% in the March-ending quarter compared to 19% in the previous year.

Lightspeed’s growing customer base, increasing ARPU (average revenue per user), and growing transition towards higher transaction value customer locations could boost its financials in the coming quarters. With these drivers, the company’s management projects its revenue to exceed $1 billion in the fiscal year that ends on March 31, 2025. Meanwhile, the company continues to explore cost-cutting initiatives, which could improve its profitability. So, I believe Lightspeed, which trades at 0.9 times its book value, could deliver multi-fold returns in the long run.

BlackBerry

Despite the near-term volatility, I have chosen BlackBerry (TSX:BB) as my final pick due to its high-growth prospects. Given its royalty backlog from new design wins and growing demand for next-generation software-defined vehicle platforms, the company’s revenue from its IoT (Internet of Things) segment could witness solid growth in the coming years.

Meanwhile, the uncertain macro environment has led to a decline in IT spending, which could hurt its cybersecurity segment in the near term. However, given its blue-chip customer base and innovative product offerings, the segment could overcome its near-term weakness to deliver solid financials in the long term. Besides, BlackBerry has lost around 48% of its stock value compared to its 52-week high and trades at 2.9 times analysts’ projected sales for the next four quarters. Considering its growth prospects and discounted stock price, I believe BlackBerry’s returns could outperform in the long term.

The post 3 Tech Stocks That Could Make You a Millionaire appeared first on The Motley Fool Canada.

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Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy.

2024