2 growth stocks I'd buy and hold for the next 50 years

The Gym Group (LSE: GYM) is a stock that has what it takes to deliver titanic profits growth long into the future.

The modern obsession with always being 'beach body ready' and living a healthy lifestyle is here to stay, and going to gym for an increasing number of people is as natural as going to work or cleaning your teeth.

This was reflected in The Gym Group's latest set of brilliant financials in which it advised that revenues jumped by almost a quarter year-on-year during 2017, to £91.4m, while the number of members on its books grew 35.5% during the period to 607,000.

These brilliant numbers were helped by strong underlying demand as well as the fruits of the company's fizzy expansion drive, the firm turbocharging the number of sites it operates to make the most of the strong environment for such businesses. It opened 21 sites in 2017 and acquired a further 18 from Lifestyle Fitness, and it plans to cut the ribbon on an additional 15 to 20 gyms in the current year alone.

As I said, it is difficult to see fitness-crazed Britain rowing back and gym demand slumping in the years to come. But The Gym Group has an added layer of protection as, unlike its more expensive competitors, the company's low-cost and no-contract membership model should ensure reliable footfall even in the event of economic conditions toughening further down the line.

City analysts are predicting blistering earnings growth of 25% and 29% in 2018 and 2019 respectively, projections that produce a PEG reading bang on the bargain benchmark of 1. This suggests the business is exceptionally priced relative to its anticipated growth trajectory, and I reckon it should provide plenty of upside for long-term investors.

Medical marvel

I also reckon ConvaTec Group(LSE: CTEC) should churn out exceptional earnings expansion in the years ahead.

Like The Gym Group, the FTSE 250 firm -- which provides a range of medical products from wound bandages to stoma bags -- is no stranger to doling out double-digit profits growth in recent times, and it is expected to keep going with rises of 9% in 2018 and 7% next year.

It may deal on a slightly-toppy forward P/E ratio of 17.2 times, but I believe the promise of reliable earnings expansion long into the future makes ConvaTec a worthy stock for a slight premium. Indeed, the firm can look to favourable demographic trends like ageing populations, lifestyle choices and increased access to healthcare to keep its products well bought in the future years. Indeed, UBS puts organic sales growth for its underlying markets at between 4% and 6%.

The company has encountered severe manufacturing issues that has seen it fail to keep up with orders. However, this is unlikely to have a significant long-term impact on demand for its products, and measures like boosting its salesforce in the US and Europe, allied with an improvement in its market strategy, should lay the groundwork for strong revenues growth in the medium-to-long term.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

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