Three TSX stocks are popping in 2021, and the surge seems unstoppable. All have gained at least 400% since the 2020 market correction. If you have $1,000, Well Health Technologies (TSX:WELL), Lightspeed POS (TSX:LSPD)(NYSE:LSPD), and Goodfood Market (TSX:FOOD) can reward you with massive returns.
Well Health Technologies owns and operates a portfolio of primary healthcare facilities but is also well known for its digital electronic medical records (EMR) software services and telehealth services. The share price is $9.23, or 601% more than the $1.34 in March 16, 2020.
This $1.49 billion company has been growing at an incredible pace since the start of operations in 2010. Expansion and acquisitions are ongoing, not only in the U.S., but globally. In Canada, Well Health operates 20 medical clinics, besides providing digital EMR software and catering to nearly 2,000 medical clinics worldwide.
If you want exposure to the health sector, Well Health is a promising growth stock. So far, in 2021, the health sector is the top-performing sector with its 49.28% year-to-date gain versus the TSX’s 5.64%. Analysts recommend a buy rating and forecast the stock to rise 43.77% in the next 12 months. A $1,000 investment should produce $437.70.
Increasing payments adoption
Lightspeed’s stock performance is likewise phenomenal. The tech stock is now trading over $100 as of February 22, 2021. Its current share price of $102.44 shows a 535.09% gain since coronavirus broke out. The market capitalization of this company that provides commerce-enabling Software as a Service platform is $12.17 billion.
The cloud-based point-of-sale system is a big hit among small- and mid-size businesses, retailers, and restaurants, among others. The platform helps these clients manage operations better and accept payments. Canadian tech stocks were the TSX’s drivers in 2020 and would probably continue their momentum and even outperform their U.S. counterparts.
In Q3 fiscal 2021 (quarter ended December 2020), total revenue increased by 79% to $57.6 million versus Q3 fiscal 2020. Despite the $42.7 million net loss, Lightspeed should be making profits soon. Due to the pandemic, As a result, customer locations grew to almost 84,000 during the quarter, which now totals 115,000. As payment adoption grows, expect the company to generate more revenues.
Better days are ahead for Goodfood Market following the lockdowns and shift to healthier food options by Canadians. This online grocery company’s share price is now 412.33% higher than it was on March 16, 2020. Had you invested $10,000 then, your money would be worth $51,232.88 today. As of February 22, 2021, the stock price is $11.22.
The $761.11 million company delivers fresh meals and grocery products and offers ready-to-eat meals. Analysts are bullish on Goodfood Market and see it as a compounding machine in the coming years. After five years of losses, the company is starting to make profits.
For fiscal 2020 (year ended August 31, 2020), Goodfood reported a 77% increase in total revenues compared with fiscal 2019. While it recorded a $4.13 net loss, it posted a $1.5 million net income for Q4 fiscal 2020. Management is confident that investments in highly targeted marketing campaigns will lead to a rapid growth in the subscriber base.
The three stocks in focus are screaming buys for growth investors. Any one of them will deliver enormous return by year-end 2021 from an investment of as low as $1,000.
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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.
Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of Lightspeed POS Inc. The Motley Fool recommends Goodfood Market.