Even with the recent stock price drop since a noted short-seller launched a public attack against the company, Shopify Inc (US) (NYSE: SHOP) has been an amazing investment since going public, with shares still up nearly 270% in less than three years.
While the long-term prospects for Shopify are probably still very good, there are other companies out there with solid prospects to deliver market-beating returns in the years ahead. Three of our contributing investors have offered up two stocks set to profit from a huge global trend in NV5 Global Inc (NASDAQ: NVEE) and A. O. Smith Corp (NYSE: AOS), and a turnaround opportunity in gold miner Yamana Gold Inc. (USA) (NYSE: AUY).
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Keep reading to learn why our experts like these three companies to help you get multibagger growth in your portfolio.
A global growth industry ripe for consolidation
Jason Hall (NV5 Global): Just as Shopify has seen explosive growth by delivering retailers a powerful way to participate in the e-commerce megatrend, NV5 Global is set for years of growth in infrastructure spending around the world. Over the next 30 years, the global middle class will come close to doubling in size, and the majority of these new middle class members will be urban residents.
It is going to take literally trillions of dollars of global spending to build out the energy, telecom, transportation, and other necessary infrastructure to support billions more people living in cities around the world.
Even the United States, which is on track to see a significant portion of its population grow older, as baby boomers reach retirement age over the next 15 years, will need to invest some $800 billion annually on infrastructure to remain globally competitive.
NV5 Global should be a big winner from this. The company, under founder, CEO, and major shareholder Dickerson Wright, has consistently delivered big growth and huge shareholder returns since going public:
The opportunity for NV5 is twofold, too. Increased infrastructure spending will not only help drive its prospects higher but will also support its ability to grow by consolidating its industry. There are more than 100,000 engineering and infrastructure consulting firms in the U.S., and NV5 Global has acquired more than 20 since its founding.
Yet its current market cap is still less than $600 million, and annual revenue might reach $300 million this year. NV5 is an excellent long-term growth stock that could deliver serious multibagger returns for years to come.
You take things like this for granted
Reuben Gregg Brewer (A.O. Smith): In developing nations, the only water option for most people is cold, but given the opportunity, they'd take a hot shower in a heartbeat. That's where A.O. Smith comes in. The company is a leading global manufacturer of water heaters, something you probably never think about. Here's what's exciting: The company is big (and still getting bigger) in giant developing market China, and it just recently built a new plant in India.