Some Canadians avoid investing in stocks because they’re afraid to lose money. However, much of that risk is mitigated by maintaining a diversified portfolio and investing for the long run. Here are three TSX stocks across different industries that offer awesome growth prospects for the long haul.
Real Matters (TSX:REAL) is a TSX stock that provides services for mortgage lending and insurance industries. It’s an understatement to say that growth stock has been weak lately. Recently, the stock corrected more than 50% from its 2020 peak.
It’s important to note that much of the correction had to do with the growth stock doing exceptionally well last year. At one point, it appreciated 160%! A part of that was because the technology company’s revenue growth was 73% in Q1 2020 during the onset of the pandemic. It was a much higher growth rate than the average of about 51% in the previous three quarters.
As growth is expected to normalize, its high multiple simply contracted. The TSX stock is getting some support at the current levels. After the huge selloff, at current levels, it could be an incredible buy for long-term growth.
Docebo (TSX:DCBO)(NASDAQ:DCBO) is another TSX stock that benefited from the pandemic, as there was a surge of workers who transitioned to working remotely at home instead of going to the office to keep people distanced.
The tech company focuses on the niche of e-learning. Think training or coaching for employees, customers, or partners. Some of Docebo’s big-brand clients include Amazon, Walmart, Heineken, and Thomson Reuters, etc.
The shift to remote working (and e-learning as a result) can continue long after the pandemic ends, as companies realize the benefits of having a meaningful percentage of staff working from home during the pandemic.
Docebo maintains high gross margins in the 80% range. Similar to Real Matters, the growth stock had a super run in 2020. Specifically, DCBO stock almost quadrupled investors’ money in one year! Therefore, it’s natural for investors to take some money off the table.
The short-term volatility could be the perfect opportunity to buy. To be clear, after the tech stock corrected about 40% followed by some basing, it could be a good time to start easing in.
Gold miners in general did well in 2020. This was thanks to continual money printing from central banks around the world that reduced the value of fiat currencies and pushed up gold prices as a result.
The large gold stock has been especially resilient, traversing largely sideways from its 2020 highs versus other gold miners that have been in an obvious downward trend.
It doesn’t seem like money printing is going to end any time soon, which makes it possible that Newmont is getting ready for the next leg up. The longer the gold stock consolidates, the stronger the upward price movement could be! While you wait for price appreciation, the gold miner also offers a competitive yield of 3.5%.
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 Kay Ng owns shares of Amazon, Docebo, Newmont and Real Matters. David Gardner owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon. The Motley Fool recommends Real Matters Inc and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.