In the last five years, the Boohoo.Com(LSE: BOO) share price has risen by 228%. That's a stunning return for a company which has often been viewed as overpriced by many investors. However, it has continued to deliver improving sales figures in recent years, while acquisitions have created a more diverse and stronger business which could post high and yet sustainable growth numbers in the long run.
However, Boohoo is not the only three-bagger which could be worth a closer look right now. One growth stock reporting on Wednesday could have investment potential for the long run.
The company in question is healthcare-focused strategic marketing company Cello Group(LSE: CLL). It has risen by 236% during the last five years. Its first-half results showed that it is making encouraging progress with its strategy, having posted a rise in gross profit of 12.9% and an increase in like-for-like gross profit of 5.4%. Its expansion in the US is progressing well, and this could create further growth opportunities for the business in the long run.
Furthermore, the company's acquisition of Defined Health in February provides it with an additional growth avenue. The integration process is progressing well, and the acquisition is already making a positive contribution to the company's financial performance. With the business on target to meet expectations for the full year, it could become increasingly popular among investors and see further share price gains in future.
Both Cello and Boohoo could be worth buying at the present time. Of course, neither stock is particularly cheap, with the former trading on a price-to-earnings (P/E) ratio of 16.3, and the latter's rating being 82.9. At first glance, this may suggest that they could be due a fall in the near future - especially if investors decide to take profits after their stunning gains.
However, in both cases the companies offer bright futures. This could propel their share prices even higher. For example, Boohoo is forecast to increase its bottom line by 36% in the current year. While this is a high rate of growth, it could prove to be sustainable over a multi-year time period due to the company's global reach and its increasingly strong customer loyalty. Therefore, this could make its current valuation much easier to justify.
Certainly, companies with high ratings could be viewed as risky by some investors. Disappointment may hit their share prices harder than it would for a company with a more modest rating, since a relatively high proportion of their future potential is already priced-in by the market. However, companies with high growth potential are rarely cheap, and a premium may be deserved in both instances.
Therefore, while further share price gains may not be as great as those over recent years for Boohoo and Cello, both stocks appear to be worth buying for the long run.
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Peter Stephens does not own shares in any of the companies mentioned. The Motley Fool UK has recommended boohoo.com. 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.