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Young Investors: 3 TSX Stocks to Hold for Decades

Image credit: Photo by CIRA/.CA.

The COVID-19 pandemic threw many of our lives into flux in 2020. This crisis destabilized our day-to-day lives. However, Canadian and North American stocks achieved stability in the second half of the previous year. Young investors should take note; there is no need to panic in a crisis. Even better, stocks thrived in the final months of 2020. The 2010s demonstrated how patient investors could be rewarded, even after a rough economic pullback. A $10,000 investment in a TSX stock like Dollarama to open the 2010s would have netted investors over $100,000 in capital gains over a decade.

Today, I want to look at three TSX stocks that have the potential to greatly reward young investors in the 2020s and beyond. Let’s dive in.

Young investors: This TSX stock launched its IPO recently

Nuvei (TSX:NVEI) is the first TSX stock I want to look at for young investors today. On the final day of 2020, I’d discussed why this tech stock has the potential to make fortunes in the years ahead. Nuvei debuted on the TSX in the middle of September. This TSX stock has climbed 22% over the past three months as of close on January 5.

As I went over in the article linked above, the payment-processing solutions market is poised for attractive growth in the 2020s and beyond. In Q3 2020, Nuvei delivered adjusted EBITDA growth of 59% and total volume growth of 62%. Young investors should feel good about jumping on this recent IPO in early 2021.

Another stock that will benefit from modern trends

Automation is one trend that has the potential to transform the fabric of our society on an economic, social, and political level. Factory automation describes systems that aim to provide turnkey automation solutions to the manufacturing sector. Allied Market Research recently projected that the global factory automation market would achieve CAGR of 8.8% from 2018 through 2025. Young investors need to get in on this exciting space.

ATS Automation (TSX:ATA) provides factory automation tooling systems to its global client base. Its shares have climbed 6.9% year over year as of close on January 5. The stock is up 27% over the past three months. ATS Automation released its second-quarter fiscal 2021 results on November 4.

Revenues slipped 2% from the prior year to $335 million. However, the company’s Order Bookings rose 26% to $403 million. ATS Automation has a promising future pipeline and it possesses an immaculate balance sheet. Young investors looking to invest in automation should leap on this stock in January.

Why young investors should stash this TSX stock right now

goeasy (TSX:GSY) is the last TSX stock I’d recommend for young investors today. I’d suggested that Canadians should buy up goeasy stock during the March market pullback last year. Its shares fell as low as $21.08 in the latter half of March. goeasy stock closed at $96.17 as of close on January 5. That represents a 456% increase. Those are mouth-watering returns in less than a year.

This alternative financial services company put together a strong third quarter in 2020. Its loan portfolio rose 14% year over year to $1.18 billion and adjusted diluted earnings per share increased 56% to $2. Despite its stunning gains since March, goeasy still boasts a favourable price-to-earnings ratio of 15. Young investors should pursue this exciting TSX stock that also offers nice value right now.

Speaking of super stocks for young investors...

This Tiny TSX Stock Could Be the Next Shopify

One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting...
Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago - before it skyrocketed by 1,211%!
Iain and his team just published a detailed report on this tiny TSX stock. Find out how you can access the NEXT Shopify today!

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Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned.

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