2 Breakout Growth Stocks You Can Buy and Hold for the Next Decade

2022 has been a year many investors wish to not remember. The Federal Reserve is set on defeating high inflation by raising interest rates, which has led stocks into a bear market. The S&P 500 is down nearly 25% this year, and many growth stocks are down 50% or more, reversing a lot of the gains from the last few years.

Stock market declines are never fun to experience, but they typically allow you to purchase growth stocks at reasonable prices. Here are two breakout growth stocks you can buy and hold for the next decade. 

1. Topgolf Callaway: More than just golf clubs

I doubt you think of fast growth when reading about golf clubs. But Topgolf Callaway (MODG -2.84%) is more than just its namesake equipment brand. The company -- as its new name implies -- owns the fast-growing retail concept Topgolf, Toptracer, and the Travis Matthew and Jack Wolfskin apparel brands.

Topgolf is a unique driving range and entertainment concept, built for large parties and group events. The business, which Callaway acquired in 2021, had around 70 locations around the world (mainly in the United States) at the end of 2021 and plans to open approximately 10 more each year. While this doesn't seem like much, each Topgolf location drives tens of millions in annual revenue, given how popular the concept is. For reference, the segment did $404 million in revenue just in the second quarter of this year, with same-store sales up 7.9% from 2019 (2020 and 2021 were difficult years because of the pandemic).

The company's apparel brands are also doing well. The segment grew revenue 39% year over year last quarter to $260 million, with operating income coming in at $22.5 million. It is harder to estimate how large this business can get as opposed to the predictable Topgolf location openings, but the teams are clearly executing well at the moment. 

Lastly, we shouldn't forget Toptracer, Topgolf Callaway's high-margin golf ball tracking business. The company is installing the software at third-party driving ranges at a rate of 2,000 driving bays per quarter. This segment is smaller from a revenue perspective but should have strong profit margins.

At a market cap of $3.35 billion, Topgolf Callaway has an enterprise value of $4.4 billion once you add back its long-term debt. Management thinks it can hit $800 million in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, its preferred profitability metric) by 2025 as the Topgolf, apparel, and Toptracer businesses continue to grow. If the business hits these targets, it is likely that shareholders will do well owning the stock over the next decade. 

2. Remitly: Modern remittance services

The remittance market -- international money transfers -- has been ripe for disruption for years. The legacy players charge exorbitant fees as high as 7% just to send money to another country, gouging poor immigrants looking to support their families back home.

Luckily, the digital age has enabled new companies to come in and offer a better value proposition. Enter Remitly (RELY -3.58%), a digital and mobile-focused remittance company that is rapidly winning market share. This is due to its lower fees and mobile-first offering, which many users prefer as internet access becomes ubiquitous globally. 

Last quarter, the service hit 3.4 million active customers, up 43% year over year and more than double the 1.5 million it had two years ago. Revenue -- which is tied to payment volume -- has grown rapidly over the past few years. In 2019, the company did $126.6 million in revenue. This year, it is guiding for $627.5 million in sales. Clearly, customers are attracted to Remitly's mobile product with lower fees.

There is a huge market opportunity within international remittances, with close to $700 billion in volume flowing to low-income and middle-income countries each year. With 3.4 million customers right now and $7 billion in quarterly send volume, the company has a long runway to grow and continue taking market share. At a market cap of just $1.85 billion, this looks like a great growth stock to own this decade.