2 growth shares I'd buy and hold for the next 5 years

Whether a company is performing well or not, it can take time for its full potential to be realised via a higher share price. In the case of a turnaround stock, the delivery of a refreshed strategy can take a number of years to have its intended impact. Similarly, a company which has sales growth that is on an upward trajectory could continue to make strong gains over a multi-year time period.

As such, buying and holding shares over the long term seems to be a solid strategy for investors to adopt. With that in mind, here are two companies that seem to offer investment potential and may be worth a closer look.

Impressive performance

Wednesday saw cyber security and data compliance specialist GRC International(LSE: GRC) release its first trading update since its IPO in early March. Since then its share price has more than doubled, with it rising by 20% following its trading update.

The company's performance in the 2018 financial year has been relatively impressive. It has been able to deliver trading performance which was ahead of previous expectations, and significantly ahead of the previous year. This shows that its strategy appears to be working well, and that investor sentiment could remain buoyant over the medium term.

Total billings for the year to 31 March were in excess of £16.2m, which represents a 122% rise over the previous year's figure. Revenue is due to show a similar growth rate and is expected to be around £15m.

Encouragingly, there were more than 538,000 website visits in March 2018 compared to 349,000 visits in January. The company believes there is a strong correlation between website traffic numbers and billings, which indicates that its new financial year could enjoy further growth.

As such, GRC International could be worth buying for the long term. While potentially volatile, it appears to be performing well in what remains a fast-growing industry.

Turnaround potential

Also offering long-term growth appeal within the technology industry is Micro Focus(LSE: MCRO). The company has experienced a turbulent recent past, releasing a profit warning as well as news of the resignation of its CEO. This has contributed to a fall in its share price of around 50% in the last year.

Despite the challenges it faces, Micro Focus is still expected to report a rising bottom line in the current year. Its earnings are forecast to rise by 2% this year, followed by growth of 7% next year. Following that, a turnaround seems to be possible, since it has a strong position in various key markets. Therefore, a price-to-earnings growth (PEG) ratio of 1.3 indicates that is could offer good value for money.

Alongside this, the company has a dividend yield of around 5.5% from a payout which is covered twice by profit. This suggests that its total return could be high, and its potential rewards seems to outweigh its risks.

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Peter Stephens owns shares of Micro Focus. The Motley Fool UK has recommended Micro Focus. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.