Got $3,000? I've got some good news for you. You can turn that sum into a sizable nest egg with enough time and the right stock. For example, $3,000 invested in the S&P 500 index, which has historically returned an average of 9%, would turn $3,000 into $7,100 in a decade.

However, if you found a stock that compounded at 20% annually, that would give you nearly $17,000 in a decade, or more than five times your original investment. Only a select few stocks can deliver those kind of returns.

Axon Enterprise (AXON 0.28%) and MercadoLibre (MELI -1.79%) have bested that over the last decade, and could do it again. Here's why these two are great buy-and-hold stocks.

1. A law enforcement tech company

You've probably heard of TASER electrical stun guns, but the company that makes them, Axon Enterprise, is about much more than just TASERs.

It makes body cameras and dashboard cameras for law enforcement as well as a network of cloud software products for things like records and evidence management, making it easier for police departments and other agencies to share valuable data with one another.

That combination of hardware and software gives Axon a powerful network of competitive advantages and an edge in a niche market. The stock has been a winner over its history, up 2,000% over the past decade.

Its recent third-quarter earnings report shows why it's been so successful. Axon just reported 34% revenue growth to $312 million for Q3, and all three of its business segments -- TASER, softwares, and sensors -- posted impressive results with revenue up 19%, 51%, and 51%, respectively.  The company also saw strong growth on the bottom line with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) up 36% to $68 million.

Axon Cloud's results were particularly strong with revenue up 51% to $95 million and gross margins above 80%, which should help drive future profitability. The cloud business also has high switching costs -- once customers start using Axon's software products, they're unlikely to switch. And the business also benefits from a recurring revenue stream; Axon has signed to long contracts and has a backlog of nearly $4 billion.

In the recent quarter, management touted strong interest from federal government agencies. It said sales of its subscription-based premium officer safety plan, which costs $250/month per officer for a package with the TASER 7, cameras, and the software to make use of the footage, were brisk as well.

At a time when most tech stocks are flailing, Axon is firing on all cylinders. It's a good bet to keep delivering outsized returns. 

2. A Latin American e-commerce star

Another tech company offering a rare combination of high growth and profits is MercadoLibre. Like Axon, MercadoLibre is a diversified business. The company's individual segments complement each other and make the overall business stronger.

In addition to its core e-commerce business, MercadoLibre also offers digital payments through Mercado Pago, shipping through Mercado Envios, lending through Mercado Credito, and even asset management through Mercado Fondo.

As the leader in Latin American e-commerce, MercadoLibre has put up strong growth throughout its history, and the stock has jumped nearly 1,100% over the past decade. MercadoLibre has also bucked the broader trend in e-commerce as its currency-neutral revenue jumped 61% in Q3 to $2.7 billion at a time when most of its U.S. counterparts are barely growing.

That performance was led by 31% growth in gross merchandise volume and a 77% jump in total payments volume. Payments growth included 122% growth in its off-platform business, showing that its mobile point-of-sale solution is rapidly gaining adoption.

Profits are also scaling up as the business grows, with operating margin reaching 11% and gross margin jumping 670 basis points to 50.1% as businesses like its e-commerce marketplace reach scale.

MercadoLibre has fended off competition from Amazon and Sea Limited, claiming the mantle as Latin America's e-commerce leader; with the fast-growing middle class in the region, it still has a long growth path in front of it. 

Despite concerns about a global recession, the company looks well-positioned to continue penetrating the Latin American market over the long term. Expect this e-commerce stock to continue to outperform.