3 Top Canadian Growth Stocks to Buy in 2021

Looking to add some growth to your portfolio? If so, you’ll want to add these three growth stocks to your watch list right now.

| More on:
Money growing in soil , Business success concept.

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

After an incredibly strong year in 2020, growth stocks have cooled off as of late. Canadian investors have seen a recent rotation out of high-priced tech companies and into value stocks. 

As a long-term Foolish investor, the recent pullback is a great time to load up on top growth stocks that are on your watch list. 

If you can stomach the high price, here are three of my top growth picks this year.

Lightspeed POS

There haven’t been many better-performing stocks than Lightspeed POS (TSX:LSPD)(NYSE:LSPD) over the past two years. The tech stock joined the TSX in March of 2019. Since then, shares are up a market-crushing 350%.

Lightspeed has been a great growth story, but shares are far from cheap. The growth stock is trading at a frothy price-to-sales (P/S) ratio of 60 right now. 

The high price explains why it’s been a volatile ride for Lightspeed shareholders. And as long as the valuation remains this high, the volatility likely isn’t going anywhere. The reason why investors are willing to pay such a premium is because of the tech stock’s growth potential. Lightspeed continues to expand its already impressive omnichannel product offering, where it also has a global presence with customers across the world. 

If you’re looking to start a position in this growth stock, now is the time. Shares of Lightspeed are down about 15% from all-time highs earlier this year. 

Dye & Durham

Dye & Durham (TSX:DND) is another relatively new public company that’s also trading at an opportunistic discount

The growth stock has been a public company for not even one year, but shares are already up 175%. The growth stock has cooled off over the last two months, though, with shares now trading close to 25% below all-time highs. 

I’d say that Lightspeed has more growth potential than Dye & Durham, but shares are also not as expensive. A P/S ratio of 30 still isn’t cheap, but it’s nowhere near where what Lightspeed is valued at.

Automating how public records are accessed might not be as exciting as e-commerce, but Dye & Durham is proving there’s certainly growth potential there. 

The company’s cloud-based software helps its customers organize their public records.

Dye & Durham’s tech solutions are primarily in demand from government, financial, and legal organizations. 


Of the three growth stocks on my list, goeasy (TSX:GSY) is the only one not trading at a significant discount right now. Shares are slightly below all-time highs from earlier this month, but only marginally. 

goeasy also differs from the other two growth stocks in terms of valuation. At a P/S ratio below five, it’s not priced as a high-flying growth stock, but it’s sure been performing like one.

Shares are up more than 600% over the past five years. If you go back a decade, the stock is a 15-bagger. 

The growth over the past 10 years has been incredible, but the stock is still only valued at a $2 billion market cap. I don’t know if I’d bank on a repeat performance over the next decade in terms of stock price appreciation, but based on market cap size alone, there’s still plenty of growth potential.

The reason why I’ve got goeasy at the top of my watch list is because I think we could see a strong second half to this year. 

goeasy is a consumer-focused financial services company. It offers its customers all kinds of loans, including personal, home, and auto. With the pent-up consumer demand and higher than usual savings rates for many Canadians, we could see a return to spending, as restrictions ease across the country.

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 Nicholas Dobroruka owns shares of Lightspeed POS Inc. The Motley Fool owns shares of Lightspeed POS Inc.

More on Tech Stocks

Dial moving from 4G to 5G
Tech Stocks

TFSA Investors: 2 Canadian Stocks With Unbelievable Staying Power 

Amid economic uncertainty, investors look for stocks that can thrive in any crisis and grow long term. Here are two…

Read more »

Make a choice, path to success, sign
Tech Stocks

Nuvei Stock Crashed 23% After Q2 Earnings: Why I’d Buy More Today

Nuvei (TSX:NVEI) stock could stage a sharp recovery soon, as it looks way too oversold after Tuesday’s big crash.

Read more »

A worker uses a double monitor computer screen in an office.
Tech Stocks

Got $2,000? Buy These 2 Tech Stocks and Hold Until Retirement

Tech stocks are on sale, but that might not be the case for much longer. Here are two top picks…

Read more »

Business man on stock market financial trade indicator background.
Energy Stocks

Market Volatility: 2 Value Stocks to Buy Right Now

The market volatility does not look like it will let up any time soon, but these two stocks are too…

Read more »

movies, theatre, popcorn
Tech Stocks

Cineplex Stock Shoots Up as Meme Stocks Rally

Cineplex (TSX:CGX) stock seems to have started a rebound after meme stocks started climbing on Monday. But should investors buy…

Read more »

Target. Stand out from the crowd
Tech Stocks

This Is, Hands Down, the Top Canadian High-Growth Stock to Buy This Week

I expect this attractive Canadian high-growth stock to rally in the near term, as it’s set to announce its latest…

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Tech Stocks

Why Sierra Wireless (TSX:SW) Stock Has Surged 79% in 2022

Sierra Wireless Inc. (TSX:SW)(NASDAQ:SWIR) is a tech stock that has soared on the back of a big acquisition announcement last…

Read more »

Financial technology concept.
Tech Stocks

BlackBerry Stock is Rallying! Buy Before It’s Too Late

BlackBerry’s improving fundamentals have helped its stock soar lately and outperform the broader market.

Read more »