Many skyrocketing growth stocks turn out to be short-lived shooting stars. But what if I told you that some stocks can offer all the thrills of growth investing with limited investing risks along the way? I’m talking about innovators targeting very large end markets, armed with robust cash profits and solid balance sheets.
On that note, here are three tremendous growth stocks that should have staying power for a decade or more. They should serve your portfolio well for a long time, helping you build long-lasting wealth.
Let’s start with Fiverr International (NYSE: FVRR).
Often dismissed as a coronavirus lockdown beneficiary with questionable business prospects in a normal economy, Fiverr keeps proving the doubters wrong. The operator of a marketplace for freelance services has more than tripled its sales in five years, including a 14% increase in the last two years.
The company’s mission is to “change how the world works together.” That ambitious goal involves revamping how people think about the concepts of work and careers. Management sees an addressable market of creative, professional, and technical freelance services worth $247 billion in the U.S. alone. The total addressable market is growing as businesses are embracing contractors and freelancers. And it’s a big world beyond American borders, giving Fiverr an even larger long-term target. Most freelancing is still managed offline, stretching Fiverr’s business runway even further.
So Fiverr has big dreams, suggesting a growth story for the ages. It is also quite profitable, converting 22% of its second-quarter revenue into free cash flow.
I told you about Fiverr’s skeptical market makers earlier. The stock price has plunged 88% lower in three years and shares are available at the rock-bottom valuation of 9 times forward earnings estimates. This is one of my favorite stocks to buy today, and I expect it to soar in the next decade.
Next, let me introduce you to The Trade Desk (NASDAQ: TTD).
This company helps advertisers publish effective digital ad campaigns. If Fiverr connects the right freelancer to the right gig, The Trade Desk connects the right advertising space to the right marketing message.
It is also an innovator, devising new technologies to get around ad-tracking limitations. Its Unified ID 2.0 platform is a privacy-focused replacement for the tracking cookies that have powered this industry for decades. Other companies are free to use this open standard, but The Trade Desk largely designed it.
Read More: 3 Breakout Growth Stocks You Can Buy and Hold for the Next Decade