Got $4000? Buy These TSX Stocks on an Unstoppable Bull Run

The sustained demand for their products should support the rally in these TSX stocks.

| More on:
Illustration of bull and bear

Image source: Getty Images.

The coronavirus has erased demand for several companies across industries. However, few Canadian companies have witnessed a surge in demand amid the pandemic with their stock prices going north.

These TSX stocks are on an unstoppable bull run as the demand for their offerings is likely to sustain and increase in the coming years. So if you have spare $4000 in cash, consider buying these TSX stocks for strong long-term gains.

Shopify

When it comes to growth, Shopify (TSX:SHOP)(NYSE:SHOP) stock tops the list. Shares of the e-commerce company have grown about 141% so far this year. Meanwhile, it is up nearly 204% in one year. The coronavirus has led businesses to move their operation online, driving the demand for Shopify’s products and services.

The company is witnessing stellar growth in traffic and remains well positioned to benefit from the online shift. The company is offering multiple sales channels to its merchants by inking deals with several big names, which should drive the demand for Shopify’s products and services.

Docebo

Docebo (TSX:DCBO) stock has surged about 104% this year. Meanwhile, its shares are up about 117% in one year. The stellar growth in Docebo stock is due to the rising demand for its software and services that facilitate enterprise learning. 

Even in the pre-pandemic phase, Docebo has performed pretty well and is inching closer to report a profit. Docebo’s recurring revenues have grown at a compound annual growth rate of 70% since 2016. Besides, its average contract value has multiplied by 2.7 times since then.

The growing deal size, high recurring revenue growth, and operational efficiencies bode well for future growth and imply that the rally in Docebo stock could continue in the coming years. 

Kinaxis 

So far, shares of Kinaxis (TSX:KXS) stock have increased by 93% this year. Moreover, it is up about 133% in one year. Investors should note that Kinaxis stock has multiplied investors’ wealth over the past several years. The stock has jumped about 622% in five years, beating the benchmark index by a wide margin.

Kinaxis provides software and services that enable corporations to manage their supply chain well. The company witnesses a steady demand for its products and remains well positioned to accelerate its growth further through acquisitions.

Kinaxis’ strong order backlog, the addition of new customers, a very high customer retention rate, and the acquisition of Rubikloud should continue to drive its stock higher in the coming years.

Enghouse Systems

The pandemic has emerged as a big demand driver for Enghouse Systems (TSX:ENGH). The company provides software that facilitates remote work and supports customer management. The company is witnessing a sharp rise in demand as the majority of people across the globe are working remotely.

The outbreak of the virus had led to a structural change in the way we work, which should drive demand for Enghouse’s offerings in the post-pandemic phase. 

Enghouse stock has increased by 49% year to date. Meanwhile, it has grown over 105% in one year. The strength in its underlying business and its appetite for acquisitions should continue to support the rally in its stock.

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 Sneha Nahata has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. The Motley Fool recommends Enghouse Systems Ltd. and KINAXIS INC.

More on Coronavirus