There has never been a better time to buy high-growth TSX stocks. Many are priced at a deep discount despite their rosy futures.
For big gains, you often have to think outside the box. What is the market ignoring? Where can you maximize the risk-reward trade-off?
Other times, your best bet is to stick with what’s working. One of the stocks below has already risen 30 times in value, but there’s even more upside to go.
Bet on what works
Shopify is considered a platform business. This is exactly what it sounds like. These companies build the underlying tech platform, allowing others to build on top. When done right, platform stocks can skyrocket for years at a time.
Perhaps the best example of a platform business is Microsoft and its Windows operating system. Microsoft built the underlying tech layer, but outside developers built the rest. Nearly everything a person does on a Windows computer wasn’t made by Microsoft. This approach allows these companies to scale rapidly.
Shopify replicates this success with its e-commerce platform. The company doesn’t make apparel, but Allbirds uses the platform to sell its shoes. Nor does the company sell women’s health products, but De Lune leverages the Shopify platform to do just that.
Shopify doesn’t need to expand itself — its customers do that instead. With a $130 billion valuation, this should eventually become the next $1 trillion stock.
This COVID-19 stock can soar
The problem is that the market hates retail stocks right now. That’s understandable. Shutdowns and volatile consumer spending hit the sector hard. But if you’re willing to look ahead, you’ll realize that Canada Goose can chart a different path.
Right now, roughly one-third of its sales come from Canada, with another one-third from the U.S. The final third comes from international sales. While that’s a relatively small piece of the pie, it’s the most exciting.
Before the pandemic began, international sales were growing by more than 60% per year, versus 25% annual sales growth for North America. This story was always about international sales growth, even if the market never understood that.
Shares have gone on a massive run over the last month or two, but if you’re willing to wait another few years, the gains should continue.
No one is watching this
But what is its industry? It’s not smartphones, but rather cybersecurity software.
Over the years, BlackBerry completely reinvented itself. It’s now focused on high-margin software sales with high growth potential. It’s playing in some massive markets, including self-driving cars and the internet-of-things.
Once the market catches on, this stock could quickly double or triple. As its end markets heat up, further growth is on the table.
If you want HYPER growth, the stock below is for you.
5G is one of the greatest arrivals in technology since the birth of the internet. We could see plenty of new wealth-building opportunities in 2020 that would potentially dwarf any that came before them.
5G has the potential to radically change our lives and society as we know it, but if you’re an investor, the implications are even greater — and potentially much more lucrative.
To learn more about it and its revolutionary potential to change the industry — and potentially your bank account — click on the link below to get the full scoop.
Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Canada Goose Holdings, Microsoft, Shopify, and Shopify. The Motley Fool recommends BlackBerry and BlackBerry and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft.