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Got $3,000? 3 TSX Stocks That Can Double Your Wealth in 2021

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When it comes to investing your money in equity markets, it makes sense to allocate a portion of your capital to growth stocks. These companies are part of a rapidly expanding market and grow revenue as well as earnings at a stellar pace. Growth stocks generally outperform the broader market over a period of time and trade at expensive valuations.

Here, we look at three such stocks that are part of the TSX.

A fintech company

The first stock on the list is Canada’s fintech giant Lightspeed (TSX:LSPD)(NYSE:LSPD). Shares of LSPD have been volatile in 2020 amid the pandemic. LSPD stock first fell from $46 in January to a record low of $10.5 in March. It has recovered all of its losses and more to currently trade at $73.8.

If you had invested $100 in LSPD stock on the first of each month this year, you would have bought 35 shares worth $2,572 today. Lightspeed is a company that provides fintech solutions to SMEs (small and medium enterprises) that are in the hospitality and restaurant space.

The shift to e-commerce has helped Lightspeed offset its revenue decline that was orchestrated by the coronavirus. Its widening portfolio of solutions also allowed LSPD to create multiple revenue streams and increase its customer retention rate.

In the fiscal second quarter, LSPD sales were up 62% year over year, while gross transaction volume soared to US$8.5 billion, a year-over-year growth of 56%.

An e-learning company

Shares of Docebo (TSX:DCBO)(NASDAQ:DCBO) have also gained momentum in 2020 after the stock debuted on the TSX in late 2019. If you had invested $100 in Docebo stock on the first of each month this year, you would have bought 48 shares worth $3,140 today.

Docebo is an enterprise-facing e-learning company that allows managers to leverage artificial learning capabilities to easily monitor, administer, and modify employee training programs. Docebo’s customer base includes several large-cap giants such as Uber, HubSpot, and Walmart.

It has partnered with customer relationship management giant Salesforce and announced a multi-year agreement with Amazon’s cloud division as well. Analysts tracking the stock expect it to increase sales by 50.4% to US$62.3 million in 2020 and by 44.7% to US$90.2 million in 2021.

While it’s still posting a net loss, analysts expect its loss per share to improve from $0.49 in 2019 to $0.06 in 2021.

An electric vehicle stock

The final stock on the list is Canada-based electric vehicle buy Green Power Motors (TSXV:GPV)(NASDAQ:GP). If you would have invested $100 in Green Power stock on the first of each month this year, you would have bought 333 shares worth $7,475 today.

GreenPower is part of the fast-growing electric vehicle segment in the medium and heavy-duty commercial market. The company forecasts annual sales of these vehicles to reach 50,000 by 2025.

GPV has an asset-light business model, allowing it to save significantly on operating and manufacturing costs. It has an assembly factory in California and sells vehicles through Creative Bus Sales which is the largest network of bus retailers in the U.S.

The Foolish takeaway

The three stocks mentioned here have already doubled your wealth in 2020 and given their multiple growth drivers, they are likely to do so again in 2021 as well.

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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.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. David Gardner owns shares of Amazon. Tom Gardner owns shares of Salesforce.com. The Motley Fool owns shares of and recommends Amazon, HubSpot, and Salesforce.com. The Motley Fool owns shares of Lightspeed POS Inc. The Motley Fool recommends Uber Technologies and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Fool contributor Aditya Raghunath has no position in any of the stocks mentioned.

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