The 2 Best Canadian Stocks That Could Double Your Money in 2021

Invest in Lightspeed POS and Dye & Durham to double your capital through these two Canadian growth stocks.

| More on:
Growth from coins

Image source: Getty Images

Growth stocks were monumental in helping the Canadian equity market to stay afloat during 2020. As most of the TSX declined, a few crucial stocks managed to become the primary growth drivers for the Canadian stock market.

The pandemic created challenges for some of the most resilient businesses. However, the fallout from the global health crisis changed the environment to suit the likes of several tech stocks offering solutions that everybody needed during the lockdowns.

As global economies begin returning to pre-pandemic levels, there are still a few excellent growth stocks on the stock market that can provide investors with capital growth. Remember that high-growth companies tend to have above-average volatility. If you are an investor with a risk tolerance that allows you to play the odds, here are two companies that you can consider adding to your portfolio.

Lightspeed POS

Lightspeed POS (TSX:LSPD)(NYSE:LSPD) was once touted to be the second Shopify due to its explosive growth, as it broke onto the scene in March 2019. Since its IPO, Lightspeed shares are up by almost 370%.

The company was primarily known for the point-of-sale hardware it provided to brick-and-mortar retailers. Today, its reason for such rapid growth in revenue and capital gains is its remarkable cloud-based ecosystem of products designed for both online and physical retail stores. Its additional product offerings include digital marketing, analytics, inventory and shipping management, and even accounting software.

Lightspeed was quick to pivot and adapt to its customers’ changing requirements due to the pandemic, and it is reaping the rewards. The stock is up 480% from its valuation year over year, and it could present you with more substantial profits in the long run.

Dye & Durham

Dye & Durham (TSX:DND) is a relatively new entrant on the TSX. The tech company went public in July 2020, and it is up 168% since going public. The stock’s valuation climbed by 240% between July 17 and December 24, 2020.

DND does not operate in one of the most exciting tech sector segments, but its immense growth rate could make it a more attractive investment to consider. The company’s customers primarily include government, financial, and legal institutions that use its cloud-based software.

DND’s cloud-based solutions help its customers automate the process of accessing, searching, and storing public records. If you are considering investing in a stock that climbed more than 200% within six months, you will have to pay a premium. Its price to sales is an expensive 31.19 at writing, making it slightly overvalued.

Foolish takeaway

Between Lightspeed POS and Dye & Durham, Lightspeed offers more exciting opportunities for investors in terms of growth. It has also had a long time to prove its potential on the stock market than DND.

At writing, Lightspeed POS is down 13.66% from its valuation on February 22. DND is down 7.82% in the same period. The sudden decline could present you an excellent opportunity to purchase high-growth stocks on a dip before the companies skyrocket.

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 Adam Othman owns shares of Shopify. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. The Motley Fool owns shares of Lightspeed POS Inc.

More on Dividend Stocks

protect, safe, trust
Dividend Stocks

Worried About a Recession? 2 TSX Blue-Chip Stocks to Protect Your Capital

If you fear a recession coming on soon, here are two blue-chip Canadian stocks to add to your portfolio for…

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

New TFSA Investors: 2 Top TSX Stock to Create a Self-Directed Retirement Fund

Top TSX dividend stocks are now on sale for new TFSA investors.

Read more »

money while you sleep
Dividend Stocks

Worried About the Market? 2 Dividend Stocks That Let You Sleep at Night

Here's why Restaurant Brands (TSX:QSR) and Enbridge (TSX:ENB) are two top dividend stocks to buy in this uncertain market right…

Read more »

money cash dividends
Dividend Stocks

How 1 Absurdly Cheap Stock Can Generate $100 in Monthly Passive Income

You can generate $100 or more in monthly passive income from one high-yield stock trading at an absurdly cheap price…

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

How I’d Invest $1000 in February to Make Easy Passive Income

Looking to earn some extra passive income in February but don't have much cash? Build an easy portfolio with these…

Read more »

sad concerned deep in thought
Dividend Stocks

Is it Worth Investing in Rogers or Shaw Before the Pending Merger?

A Rogers stock and Shaw stock deal looks all but certain, yet should investors still buy the stock? Or are…

Read more »

runner ties shoe while stopped on grass outside
Dividend Stocks

Is Nutrien Stock a Buy in February 2023?

Nutrien stock should benefit from the very favourable supply/demand fundamentals in the agriculture business in 2023.

Read more »

Dividend Stocks

Is Brookfield Asset Management a Buy in February 2023?

Brookfield Asset Management is among the largest stocks trading on the TSX. Let's see why BAM stock is a buy…

Read more »