2 Top Canadian Stocks I Would Buy With $2,000 for 2021

I expect the large addressable market, product expansion, and strong demand to support the uptrend in these two stocks.

| More on:
analyze data

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

Despite expensive valuation, uncertainty over the pace of economic recovery, and rising COVID-19 infections, I am upbeat on Shopify (TSX:SHOP)(NYSE:SHOP) and goeasy (TSX:GSY) stock. I expect both these companies to deliver stellar returns on the back of a large addressable market, product expansion, and strong demand. 

So, if you’ve got $2,000, consider buying these top TSX stocks now. 


Shopify stock is up about 61% in one year. However, it witnessed sharp selling in the recent past on valuation concerns and an expected slowdown in the pace of shift towards the e-commerce platform. The reopening of the economy could drive some of the spending towards the physical retail channels, resulting in the normalization in demand. 

Despite the expected normalization in demand, I expect Shopify stock to continue to benefit from the higher spending on the e-commerce platforms. I believe the favourable secular industry tailwinds provide a strong growth platform for Shopify. Meanwhile, Shopify’s initiatives to drive its market share and capitalize on the positive industry trends bode well for future growth. 

I expect to see an increased number of merchants joining its platform, thanks to its several new sales and marketing channels. Further, its growing fulfillment network and increased adoption of Retail POS and POS Pro offerings are likely to drive the merchant base and, in turn, its financials. Shopify’s scale, low-debt balance sheet, operating leverage, new products, international expansion, and massive market provide a solid foundation for outsized growth in the future. Shopify stock has lost about 25% from its peak and presents a good buying opportunity at current levels. 


goeasy stock has surged over 280% in one year. Furthermore, it has increased by about 44.5% so far this year. I expect the uptrend in goeasy stock to sustain in 2021 and beyond, reflecting its ability to grow earnings at a robust pace. Notably, goeasy’s earnings have grown at a strong double-digit rate in the past several years. Its dividends have grown at a compound annual growth rate of 34% in the last seven years, thanks to its high-quality earnings base. 

Looking ahead, I expect customer demand and loan originations to improve and drive goeasy’s financials. Moreover, increased penetration of secured loans, cross-selling opportunities, and strong credit and payment performance is likely to support its future revenues and earnings. With improving demand and economic recovery, goeasy’s loan portfolio is expected to mark healthy growth over the next three years. 

Meanwhile, the company projects double-digit growth in its top line in the coming years. The expansion of its product range, expected increase in loan size, and new distribution channels augur well for future growth. Besides, a large sub-prime lending market and its strong competitive positioning suggest that goeasy’s earnings could continue to mark a high double-digit growth rate in the coming years. Meanwhile, the company could continue to enhance its shareholders’ returns through higher dividend payments. Currently, goeasy offers a decent yield of 1.9%. 

Bottom line

Shopify and goeasy have consistently delivered sky-high returns for their shareholders. I believe the uptrend in both these stocks could continue in 2021 and beyond, owing to the strength in their base business, product expansion, and secular industry tailwinds. Investors should snap up both these stocks at current levels for stellar gains in the long run.

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 Sneha Nahata 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.

More on Tech Stocks

A stock price graph showing growth over time
Tech Stocks

3 Cheap Growth Stocks to Buy Right Now

Given their growth prospects and cheaper valuations, these three TSX stocks could deliver superior returns in the long run.

Read more »

Overhead shot of young adults using technology at a table
Tech Stocks

3 Stocks I’m Buying During a Tech Stock Correction

Tech stocks like Constellation Software (TSX:CSU) should be on your radar.

Read more »

financial freedom sign
Tech Stocks

$5,000 Invested in These 3 Stocks Could Make You Rich Over the Next 20 Years

Are you looking for stocks that could carry your portfolio over the next 20 years? Here are three top picks!

Read more »

potted green plant grows up in arrow shape
Tech Stocks

This Growth Stock Rallied 20% Yesterday, But it’s Still Cheap!

This growth stock is a great value. The 20% rally indicates the company has executed well and has potential for…

Read more »

Target. Stand out from the crowd
Tech Stocks

Down 70%, This Could Be the Best Stock-Split Stock in Canada to Buy and Hold Forever

This is arguably be the best stock-split stock to buy right now, as it has the potential to multiply your…

Read more »

Growth from coins
Dividend Stocks

What’s More Effective: 1 Growth Stock or 1 Dividend Stock for High Returns?

Let's settle the age old debate. If you had invested in a huge growth stock or a solid dividend stock,…

Read more »

Money growing in soil , Business success concept.
Tech Stocks

Forget BlackBerry Stock: Buy This Growth Stock Instead

BlackBerry (TSX:BB)(NYSE:BB) stock is up over 30% in the last two months, but is it all due to meme stock…

Read more »

Plant growing through of trunk of tree stump
Tech Stocks

Buy the Dip: 2 Top Growth Stocks That Could Turn $5,000 Into $25,000

Investors can consider buying growth stocks such as Shopify that are trading at a discount to their historical valuation.

Read more »