Some of the most important stocks you’ll have in your portfolio are high-growth companies with the potential to grow your capital rapidly. There are a variety of Canadian growth stocks of all sizes. Some of the best ones, though, start out just as small-cap companies.
The TSX Venture Exchange is a great place to find these. The venture exchange is for smaller companies that don’t quite meet the listing requirements of the TSX.
This is where you can find some of the next biggest growth stocks, before most other investors. In addition, due to certain rules and regulations, many institutions don’t invest in stocks that aren’t on the TSX.
So if you can find companies with excellent prospects for growth, get in early enough, and invest for the long-run, you can see some serious returns on your investments.
Here are three of the highest potential TSX venture stocks for investors to consider today.
A rapidly growing Canadian e-commerce stock
The first company to consider is one with a unique concept that’s taking advantage of the rapidly growing Shopify (TSX:SHOP)(NYSE:SHOP) effect. WeCommerce Holdings Ltd (TSXV:WE) is a tech business focused on acquiring high-growth e-commerce companies.
So far, some of its earliest investments are in businesses creating applications, themes, and services for merchants operating on Shopify. This is an even more opportunistic way to play the explosive growth in e-commerce and Shopify’s business specifically.
Shopify is the second-largest online retailer in the U.S. And in the five years from 2014-2019, e-commerce spending tripled. Furthermore, online shopping now accounts for roughly one out of every six dollars spent by consumers.
At less than $900 million market cap, WeCommerce is a lot smaller than the nearly $200 billion Shopify. So if you want a high-potential Canadian stock in an explosive industry that will continue growing both organically and by acquisition, WeCommerce is a top choice.
A Canadian cryptocurrency stock
Speaking of high-potential stocks in explosive industries, Bitfarms Ltd (TSXV:BITF) is another Canadian stock to check out.
Bitfarms is a cryptocurrency miner offering significant potential as digital currencies like Bitcoin explode in value. Bitcoin mining is an extremely complicated process. And on top of that, it’s also very competitive.
So Bitfarms is a higher-risk way to invest in the growing cryptocurrency industry. However, investors are rewarded for taking on the risk with a company that can grow significantly.
It’s only worth $400 million, so it’s still just a small company. Over the last three months, though the stock is up by more than 600%. This shows just how much potential the Canadian stock has when Bitcoin is rallying.
A high-potential digital healthcare stock
Finally, one stock that’s gotten a huge boost from the pandemic is CloudMD Software and Services Inc (TSXV:DOC).
While CloudMD has various businesses in the healthcare industry, its main business that provides the most potential for investors is its software. CloudMD offers digital healthcare services to connect doctors and healthcare providers with their patients from any mobile device.
This is the future of healthcare making the stock essentially crash-proof in this pandemic. CloudMD is not just a stock for the pandemic, though.
Even after the pandemic, the stock will still have years of growth ahead of it. Digital healthcare isn’t going away anytime soon. In fact, it’s only going to become more popular.
There will be times where you have to go to see your doctor for a physical session. However, if you can just check in with your doctor quickly rather than going all the way there and spending inevitable time in the waiting room, it would be much more beneficial for yourself and the whole economy to be able to do it virtually.
Since CloudMD is one of the fastest-growing companies in the sector and is now down more than 20% from its high in October, it’s one of the top Canadian stocks to buy in February.
The key to finding stocks that can grow rapidly for years is both a high-quality company and a rapidly growing industry. These three stocks all have those qualities, which is why they are among the very best Canadian stocks you can buy today.
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.
Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify.