The Motley Fool

2 TSX Millionaire-Maker Stocks to Buy Right Now

Image source: Getty Images

Despite the recent economic downturn, TSX stocks have managed to climb higher. In the last two months, the broader Canadian markets have surged almost 40%, showing a quick recovery following the crash in March.

Interestingly, Canadian growth stocks seem to have resumed their upward climb after a short blip in the COVID-19 crash. It would be a great time to seize the opportunity before some of these growth stocks move even higher.

Shopify is no doubt a hands-down winner among growth stocks in the last few years. The stocks continued to march higher despite valuation concerns and slowing revenue growth. In the last five years, the e-commerce giant has returned  3,200%, outperforming peer growth stocks by a wide margin.

Let’s see what other TSX growth stocks have in store for the next few years. Shopify has created solid wealth for its shareholders. Will other growth stocks be millionaire-makers?

Constellation Software

Constellation Software (TSX:CSU) acquires smaller companies that provide software solutions in niche markets. The $32.5 billion company has completed more than 260 acquisitions since its inception in 1995. Its solid revenues and earnings growth have been echoed in its market performance in all these years.

In the last 10 years, CSU stock has returned more than 3,500%. An investment of $100,000 in this stock would have accumulated $4.4 million today.

It is not prudent to expect similar returns from Constellation Software for the future. Its growth rate should fall as the company enters maturity in the next few years.

However, one can still expect above-average returns from this tech titan. Even if its growth rate is halved in the next few years, it would still create a handsome return for its shareholders. Its unique business model, diversified customers as well as product base, and strong balance sheet make it a strong name among TSX growth stocks.

Boyd Group

One might overlook Boyd Group (TSX:BYD.UN) given its boring business model. But it was one of the top gainers among TSX stocks, returning 2,900% in the last decade.

Boyd is one of the biggest non-franchised auto collision repair centre operators in the continent. It operates 682 centres in the United States and Canada and is also the second-biggest retail auto glass operator in the United States. Boyd’s recipe for success was to consolidate the fragmented collision repair industry in North America. It works largely with insurance companies instead of retail customers.

Boyd’s revenues grew from $357 million in 2011 to $2.3 billion last year. The stock was trading close to $8 back then, and it has passed $200 at writing. An investment of $100,000 in Boyd stock 10 years ago, would have made $3.8 million by today.

Investors with above-average risk appetite can consider these growth stocks to build a healthy retirement reserve. With growth stocks like these, it may take much less time to build a substantial reserve than with defensive stocks. This is where taking a high risk can pay off.

Looking for some more growth stocks?

This Tiny TSX Stock Could Be the Next Shopify

One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting...
Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago - before it skyrocketed by 1,211%!
Iain and his team just published a detailed report on this tiny TSX stock. Find out how you can access the NEXT Shopify today!

Click here to discover how!

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.

Fool contributor Vineet Kulkarni has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Constellation Software, Shopify, and Shopify.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.