When it comes to growth stocks, it’s easy for investors to get distracted by the new shiny stocks. However, some of the previously promising stories are often the best options for your portfolio. In this article, I will discuss three TSX stocks with the biggest upside.
Don’t sleep on e-commerce
Ecommerce is continuing to thrive as we move deeper into the new year. Prime Minister Justin Trudeau announced that further COVID-19 restrictions will be imposed in the near future, which will only help bolster online merchants. Because of this, Shopify (TSX:SHOP)(NYSE:SHOP) continues to be my top pick among all the stocks listed on the TSX.
On January 27, company president Harley Finkelstein put this massive movement very simply, saying, “In 2020, an entrepreneur on Shopify made their first sale every 28 seconds versus every 52 seconds in 2019.” This is big news, as it not only illustrates the major increase in online traffic, but also the uptick in new entrepreneurs. As Shopify continues to increase its merchant count, the possibility for increased revenues becomes more likely.
Digitization is coming — be a part of it
As businesses continue to grow, digitization will become increasingly leaned upon as it is the only way many businesses will be able to successfully scale. Docebo (TSX:DCBO)(NASDAQ:DCBO) continues to lead the enterprise learning space with its cloud-based and AI-powered LMS platform.
In 2020, the company managed to land a multi-year partnership with Amazon to power its AWS Training and Certification offerings worldwide. Docebo also held a successful Initial Public Offering (IPO) in the United States last year, giving the company a second avenue to access capital.
Docebo stock has fallen about 20% since the start of the year. However, the company’s growth trajectory is still intact. With its American IPO and a partnership with Amazon in its back pocket, you can count on the company continuing to grow in the coming years.
Joe Biden could single-handedly power this industry
With his recent win in the presidential election, investors are eager to see the massive changes that Joe Biden will bring to the renewable energy industry. He has yet to start fulfilling his promise of investing $400 billion into clean tech over the next 10 years; however, the already United States have rejoined the Paris Climate Agreement. Because of these developments, Brookfield Renewable Partners (TSX:BEP-UN)(NYSE:BEP) is a company you should hold in your portfolio.
Brookfield Renewable is a global leader within the renewable energy industry. With a diversified portfolio of assets capable of generating 19,400MW of power, Brookfield Renewable stands atop its Canadian contemporaries. The company has continued to expand its reach, namely with a new project in Brazil. With a political tailwind supporting the industry and a company eager to expand, all signs seem to point to continued growth for Brookfield Renewable.
Investors often chase the companies that are the hot flavour of the day. However, some of the best options for your portfolio may be the companies that have been left behind by many. Shopify, Docebo, and Brookfield Renewable are three stocks that would be great buys for 2021 and beyond.
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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. Fool contributor Jed Lloren owns shares of Brookfield Renewable Partners, Docebo Inc., and Shopify. David Gardner owns shares of Amazon. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Amazon, Shopify, and Shopify and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.