3 Canadian Growth Stocks That May Double Your Wealth in 2020

For investors looking to invest in growth stocks, Canadian companies such as Lightspeed seem to be attractive bets.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Growth stocks continue to remain attractive to investors around the world. Investing in high-growth companies provides an opportunity for generating multi-fold returns. Though these stocks trade at a premium valuation and have a high beta, it is advisable to buy them at major corrections and hold them for the long term.

Here we look at three Canadian growth stocks that have huge addressable markets and strong growth metrics.

Boralex

For investors looking to invest in the renewable energy space, Boralex (TSX:BLX) needs to be on their radars. The company is a major player in Canada’s renewable energy segment.

Valued at $2.6 billion in terms of market cap, and with an enterprise value of $5.75 billion, Boralex is well poised to increase shareholder wealth in 2020 and beyond. In the September quarter, Boralex increased sales by 16% year over year to $92 million.

The company is looking to increase its installed capacity by 82 megawatts this year, which will boost its top-line growth. Analysts expect sales growth of 22.1% in 2019 for Boralex, while earnings are expected to grow by 115.6% in 2019.

The stock is trading at a forward price-to-earnings multiple of 79, which is expensive, but it is supported by strong earnings growth. The stock has gained 44.5% in the last year and has returned 98% in the last five years.

Score and Gaming

Score and Gaming (TSXV:SCR) is a Canada-based mobile gaming company that is now banking on the sports betting vertical to drive growth. The company’s mobile application is theScore, which is a multi-sports, news, and data platform.

SCR is optimistic about the new legislation in the United States that allows sports betting. The betting app is live and taking bets in New Jersey. SCR will look to gain traction in other regions south of the border. In order to fund growth in the betting vertical, Score and Gaming raised $40 million in the last quarter from Fengate Asset Management.

The stock has a market cap of $251.51 million and is valued at 5.3 times forward sales. Analysts expect the company to increase sales by 50.8% in 2019 and 43.9% in 2020. SCR stock has gained a staggering 148% in the last 12 months, easily crushing market returns.

Lightspeed POS

One of Canada’s most promising companies in the tech space is Lightspeed POS (TSX:LSPD). The stock went public in March 2019 at a price of $16 and has more than doubled to currently trade at $45.6.

It provides software solutions to retailers and restaurants in Europe and North America. These solutions include point-of-sale, e-commerce, and inventory management. Its cloud-based solutions are available in 100 countries and 57,000 locations.

LSPD is valued at $3.89 billion or 32.5 times forward sales. This premium valuation is supported by robust revenue growth. Analysts expect LSPD sales to increase from $77.45 million in fiscal 2019 to $177.35 million in fiscal 2021.

The company’s rapid growth and expanding product offerings will help LSPD increase its customer base, which will give a boost to top-line growth.

Should you invest $1,000 in Boralex Inc. right now?

Before you buy stock in Boralex Inc., consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Boralex Inc. wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool owns shares of Lightspeed POS Inc. The Motley Fool recommends BORALEX INC. Fool contributor Aditya Raghunath has no position in any of the stocks mentioned.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Tech Stocks

Safety helmets and gloves hang from a rack on a mining site.
Tech Stocks

Where I’d Invest $300 in the TSX Today

A TSX stock with a leading-edge safety technology is a screaming buy today for its high-growth potential.

Read more »

Map of Canada showing connectivity
Tech Stocks

1 Magnificent Canadian Stock Down 16% to Buy and Hold Forever

This Canadian stock might be one of the best opportunities out there right now while shares are down.

Read more »

A microchip in a circuit board powers artificial intelligence.
Tech Stocks

This AI Stock Could Turbocharge Your TFSA With Substantial Growth Potential by 2030

Down almost 60% from all-time highs, AMD is an AI stock that has significant upside potential. Is the tech stock…

Read more »

a-developer-typing-lines-of-ai-code-while-viewing-multiple-computer-monitors
Tech Stocks

Constellation Software Looks Like a Tremendous Buy Today 

Constellation Software stock, which crossed the $5,000 mark, is trading below $4,500, presenting a compelling buy opportunity.

Read more »

Canada national flag waving in wind on clear day
Tech Stocks

Top Canadian Stocks to Buy for Great Growth in 2025

There are some Canadian stocks starting to recover, and these two look like top choices.

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

3 Canadian Artificial Intelligence Stocks to Buy and Hold Until 2040

These three Canadian tech stocks to help you benefit from the surging demand for AI tech and infrastructure in the…

Read more »

money goes up and down in balance
Tech Stocks

Billionaires Are Selling Apple Stock and Buying This TSX Stock in Bulk

Billionaires might be dumping Apple stock after it lost over US$600 billion last week. But this other tech stock looks…

Read more »

Data center woman holding laptop
Tech Stocks

Better Tech Stock: Lightspeed Vs. Kinaxis?

These two tech stocks were once on top of the world, but after coming down in price, it might be…

Read more »