3 Top Growth Stocks to Buy Today With $3,000

TSX stocks: If you are an aggressive investor, consider investing a significant portion of your portfolio in growth stocks.

| More on:
potted green plant grows up in arrow shape

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Growth stocks are relatively more volatile but offer a higher return potential to investors. They generally exhibit higher financial growth and beat broader markets. If you are an aggressive investor, consider investing a significant portion of your portfolio in growth stocks.

Goodfood Market

The online grocer Goodfood Market (TSX:FOOD) has seen significant growth since last year amid the pandemic. The meal-kit delivery company delivers fresh meat ingredients to subscribers. The company has seen a remarkable growth of subscribers due to advantages like convenience and lifestyle.

For the quarter ended in February 2021, Goodfood reported revenues of $100.6 million, representing a handsome 71% growth year over year. Its expanded product basket and same-day delivery boosted the subscriber base and order frequency, which resulted in higher revenues. However, the company’s losses widened and came in at $4 million during the quarter.

Notably, Goodfood’s upbeat revenues were not enough to revive its stock. Goodfood stock has fallen more than 40% since January this year. However, the recent correction could be an opportunity for discerned investors.

The pandemic has changed consumer behaviour substantially, which could see continued growth in subscriber base and revenues. The stock looks notably cheap from the valuation standpoint. Its latest revenue trends indicate significant growth potential ahead, which could drive the stock higher.

Shopify

Canadian tech titan Shopify (TSX:SHOP)(NYSE:SHOP) stock is up 20% so far this month. It was notably weak earlier on valuation concerns and amid re-opening hopes. However, fear of more restrictions boosted SHOP stock recently.

Shopify is one of the fastest-growing tech giants on the planet. From US$205 million in 2015, its revenues have grown to US$3 billion in 2020. It will likely continue its superior growth for the next few years, driven by a growing merchant base and a large addressable market.

SHOP stock might keep trading strong, despite valuation concerns. It plans to report Q1 2021 earnings on April 28. Investors can expect another streak of strong numbers from Shopify.

Nuvei

One of the top payment-processing company Nuvei (TSX:NVEI) is my third pick. It is up more than 30% in the last three months.

On April 16, Nuvei announced the acquisition of Mazooma Technical Services, a U.S.-focused gaming and sports wagering payment technology company. The deal is valued at US$56 million plus an additional consideration of up to US$315 million based on specific performance criteria. Nuvei will expand its U.S. presence with Mazooma, which will likely positively impact its top-line growth.

The U.S. could be the biggest opportunity for Nuvei with rising sports betting legalization prospects. It operates in 200 markets globally with 150 currencies and supports over 450 payment methods.

In Q4 2020, Nuvei reported 46% revenue growth year over year and reported $21.7 million in profits.

Fintech companies have seen solid growth in the last few years. The market will likely grow further, driven by e-commerce and digitization.

NVEI stock is trading close to its all-time highs and looks stretched from the valuation standpoint. However, the premium valuation is justified to some extent, given its recent financial growth and rising addressable market.

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 Vineet Kulkarni 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. The Motley Fool recommends Goodfood Market.

More on Dividend Stocks

energy oil gas
Dividend Stocks

2 High-Yield Energy Stocks to Buy as Recession Approaches

Energy stocks such as TC Energy and Canadian Natural Resources allow investors to generate income even in recessionary times.

Read more »

green power renewable energy
Dividend Stocks

3 Top Dividend Stocks to Drive Your Passive Income

These three high-yielding, safe dividend stocks could boost your passive income.

Read more »

protect, safe, trust
Dividend Stocks

TFSA Wealth: How to Earn $363 in Monthly Passive Income for Life

Canadian investors can harness the power of the TFSA to generate steady tax-free passive income for decades.

Read more »

Canadian Dollars
Dividend Stocks

TFSA Millionaire: How to Turn $40,000 Into $1.2 Million for Retirement

Here's how TFSA investors are using the power of compounding to buy top Canadian dividend stocks to build retirement wealth.

Read more »

edit Balloon shaped as a heart
Dividend Stocks

My 3 Favourite TSX Stocks Right Now

These three TSX stocks are my favourite performers. All have strong dividends, future growth, and historic performance behind them.

Read more »

Dividend Stocks

Passive Income Generator: 1 Dividend Stock Yielding 6.16%

A high-yield energy stock that pays monthly dividends is a reliable passive income generator for investors.

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

3 Cheap Canadian Dividend Stocks to Buy Now for Passive Income

Investors seeking quality passive income can now buy top TSX dividend stocks at cheap prices.

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

2 Oversold TSX Dividend Stocks to Buy for Passive Income

While these high-quality dividend stocks are oversold, they are some of the best stocks to buy for passive-income seekers.

Read more »