Shares of Canada’s e-commerce giant Shopify (TSX:SHOP)(NYSE:SHOP) have been on an absolute tear since it went public in May 2015. Shopify stock has returned a staggering 5,480% since its IPO and is up 142% in 2020. The company has benefitted from the COVID-19 pandemic that has served as a tailwind, resulting in record Q2 sales for the firm.
Shopify sales were up 97% in Q2 while its gross merchandise volume rose by a stellar 119% year-over-year. It was the company’s best-ever Q2 since its IPO and we can see why investors have been bullish on Shopify.
The dreaded virus has hurt several industries, but as people are largely staying at home, they have accelerated the shift to online shopping. E-commerce sales accounted for 16% of total retail sales in Q2, up from 11% in the fourth quarter of 2019.
Shopify has multiple revenue drivers that make it a top stock for growth investors over the upcoming decade. However, there are three other stocks that have crushed Shopify returns in 2020.
A remote work enabler
The first stock on the list is collaboration giant Zoom Video (NASDAQ:ZM), a company that is benefitting from the work from trend. Zoom stock is up 472% year to date driven by a monumental 355% year-over-year revenue growth in Q2.
The number of Zoom customers that generated trailing 12-month revenue of over $100,000 rose 112% in the June quarter. Further, the number of customers with over 10 employees were up 458%. This was in fact the second consecutive quarter of triple-digit revenue growth.
Zoom managed to grow its earnings by 11 times to $0.92 per share, which was way above consensus estimates of $0.47 in Q2. Its operating margin rose to 41.7% from 14.2% in the prior-year period.
The company attributed its rising profitability to accelerating revenue growth which outpaced operating expenses. In Q3, Zoom has forecast sales growth between 311% and 314% while it expects full-year sales to rise between 281% and 284%.
A health tech stock
A TSX stock that has outperformed Shopify is Well Health Technologies (TSX:WELL). Well Health shares are up 315% year to date and are poised to generate market-beating returns in the long term.
The company owns 19 medical clinics with 180 physicians and provides a SaaS (software-as-a-service) platform to support a network of 1,900 medical clinics and 10,000 physicians in Canada.
Well Health has grown its top-line by focusing on acquisitions of electronic medical record (EMR) providers. It is now the third-largest Canadian company in the EMR space. In March 2020, Well Health launched its telehealth service and a digital health communications platform known as VirtualClinic+. This platform connects patients and physicians via video, messaging and phone which is extremely essential in the current environment.
Well Health has completed 18 acquisitions since 2018 and this includes three equity investments. It confirmed it will continue to pursue acquisition opportunities in the clinical and digital healthcare space.
Canada’s Tesla equivalent
The final stock on the list is Canada-based GreenPower Motor, which is the second publicly-listed electric vehicle company in North America after Tesla. GPV stock is up 927% year-to-date and has been one of the top-performing stocks in 2020.
The company’s sales in fiscal 2020 stood at $13.5 million while analysts expect it to reach $25 million in 2021, indicating a forward price to sales multiple of 14.7.
We know investors remain bullish on companies in the EV space given the rapid growth potential in global markets. This makes first-mover companies such as GreenPower Motor attractive bets for investors with large risk appetites.
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.
David Gardner owns shares of Tesla. Tom Gardner owns shares of Shopify, Tesla, and Zoom Video Communications. The Motley Fool owns shares of and recommends Shopify, Shopify, Tesla, and Zoom Video Communications. Fool contributor Aditya Raghunath has no position in any of the stocks mentioned.