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Want $10,000? Just Invest $1,000 in These TSX Stocks and Wait

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How can you accumulate $10,000? You could take the traditional route and save 10% of your paycheck over more than a year. Or you could set aside half of your Canada Emergency Response Benefit (CERB) payments over the maximum 24-week period. However, the best way to generate $10,000, in my view, is to invest $1,000 in hyper-growth TSX stocks. 

Hypergrowth stocks are usually underrated and overlooked technology stocks in massive industries. These TSX stocks quickly gain market share by disrupting their rivals and revolutionizing their industries. 

With that in mind, here are top TSX stocks that could turn $1,000 to $10,000. 

Healthtech TSX stock

My Fool colleague Ambrose O’Callaghan described Andlauer Healthcare Group (TSX:AND) as an “explosive tech and health stock.” So far, it’s living up to that description. The TSX stock is up 90% since it listed at the start of this year. 

Despite this surge, the stock is still trading at a relatively reasonable valuation. Andlauer’s market capitalization is $477 million. The price-to-earnings (P/E) ratio is a mere 23.3. That’s phenomenal for any tech stock during such an unprecedented market rally. 

Andlauer’s healthcare supply chain management software is worth billions and has plenty of potential for more growth. Market experts estimate the industry could expand by a compounded annual rate of 7.9% through 2025. As the company steadily makes inroads, the valuation could surge 10-fold in just a few years. 

Cybersecurity TSX stock

Rising demand for cybersecurity tools is an underappreciated aspect of the work-from-home movement. As billions of people work from home for the first time, they become targets for sophisticated online attackers. Enterprises could turn to tools supplied by the likes of Absolute Software (TSX:ABT) to protect themselves.

Absolute specializes in endpoint security. This means its security platform is specifically designed to protect laptops, smartphones, and home internet routers that the global workforce now relies on. Securing these devices is a robust and lucrative business model based on high margins and recurring cash flows. 

The stock has surged 122% since mid-March this year. Despite that climb, the stock is fairly valued. The P/E ratio is 49, which is justified for a growth stock. Meanwhile, the TSX stock provides a robust 2% dividend yield that has been steadily expanding for years. 

Absolute seems to strike the perfect balance between growth and downside protection. It could take longer to deliver a 10-fold return, but it’s a more reliable bet than most other hyper-growth TSX stocks. 

Foolish takeaway

TSX stocks, and tech stocks in particular, could deliver stunning gains in just a few years. Early investors in some noteworthy tech stocks have managed to multiply their wealth 10-fold in fewer than 10 years, which is why betting on underrated tech stocks is the best way to turn $1,000 today into $10,000.

To this end, I keep an eye on stocks that have been overlooked by most investors. These are usually small emerging challengers in massive industries. Andlauer Healthcare and Absolute Software are my top two picks for growth stocks in multi-billion-dollar industries.

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Fool contributor Vishesh Raisinghani has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Andlauer Healthcare Group Inc.

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