Young Investors: Buy These 4 High-Growth Canadian Stocks for Oversized Returns

Given their high-growth prospects, these four Canadian Stocks could outperform the broader equity markets in the coming years.

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Investing in growth stocks would help investors create significant wealth at a faster pace. However, these companies can be volatile. So, young investors with a higher risk-taking ability and a longer investment time frame can invest in these stocks to earn oversized returns. Here are the four high-growth stocks you can buy right now.

Green Thumb Industries

Amid the legalization of cannabis by five more states in November, the U.S. cannabis market has expanded. Given the impact of pandemic-related spending on their budgets, more states could legalize cannabis in the coming years to expand their revenue streams. Further, with Democrats taking over the control of both Senate and House, I expect the pro-cannabis bills, such as the SAFE Banking Act and the MORE Act, could soon become laws.

Given the favourable factors in the cannabis sector, I have selected Green Thumb Industries (CNSX: GTII) as my first pick. With a healthy 13 cultivation and manufacturing facilities, the company has a strong presence in 12 U.S. states. It also operates 52 dispensaries under the Rise brand. After delivering an impressive return of over 140% last year, Green Thumb Industries has continued its upward momentum, with its stock trading 38.3% higher for this year. Meanwhile, I believe the rally could continue given the favourable market conditions and its healthy growth initiatives.

BlackBerry

After failing to deliver on its promise over the last few years, BlackBerry (TSX: BB)(NYSE: BB) is now well positioned to deliver superior returns for its investors in the coming years. Its recent partnerships with Amazon Web Services and Baidu have significantly expanded its growth prospects in the automotive industry. The company had recently sold 90 smartphone technology patents to Huawei and has settled its messaging patent litigation with Facebook, which has increased investors’ confidence.

Further, in the cybersecurity and endpoint management segment, the company has been strengthening its market share through its Spark Suite and Cyber Suite platforms. They have also helped the company in acquiring many blue-chip clients. Despite its high-growth prospects, BlackBerry’s valuation looks attractive, with its price-to-book multiple standing at 2.4. So, given its high-growth prospects and attractive valuation, I believe BlackBerry would be an excellent bet for long-term investors.

Northland Power

Amid the concerns over the rising pollution levels, the world is slowly shifting towards clean or renewable energy. Further, Joe Biden, a supporter of clean energy, becoming 46th president of the U.S. has given a significant boost to the sector. Amid these favourable factors, I have selected Northland Power (TSX: NPI) as my third pick. The company currently operates facilities that generate 2.6 gigawatts of power, while additional 1.5 gigawatts of facilities are under construction.

Meanwhile, Northland Power is looking at expanding its business in the U.S. and Europe. In the third quarter, the company acquired three onshore wind developmental projects in New York, which would provide the company an entry into the attractive U.S. green energy market. Last month, the company signed an agreement with PKN Orlen to acquire a 49% stake in Baltic Power projects that generate 1.2 gigawatts of power.

WELL Health Technologies

Last year, WELL Health Technologies (TSX: WELL) had returned over 415%, amid increased demand for telehealthcare services due to the pandemic. As the technological infrastructure allows patients to receive medical care anywhere, anytime, in a cost-efficient way, telehealthcare services’ demand could sustain, even in the post-pandemic world. Meanwhile, the company has expanded its telehealthcare service to the U.S. through the Circle Medical Technologies acquisition in November.

WELL Health is also looking at expanding its EMR business through acquisitions. Yesterday, the company announced to have signed an agreement to acquire CRH Medical Corporation for US$369.2 million. CRH currently generates revenue at a run rate of US$120 million, with an operating EBITDA margin of 40%. WELL Health has also created a marketplace for digital health applications. So, the company’s growth prospects look healthy.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. David Gardner owns shares of Amazon, Baidu, and Facebook. Tom Gardner owns shares of Baidu and Facebook. The Motley Fool owns shares of and recommends Amazon, Baidu, and Facebook. The Motley Fool recommends BlackBerry and BlackBerry and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.

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