Avoid Bitcoin and Buy These Growth Stocks Instead

Bitcoin is reeling. Canadians should look to buy growth stocks like Canada Goose Holdings Inc. (TSX:GOOS)(NYSE:GOOS) instead.

| More on:
Business man on stock market financial trade indicator background.

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

Mainstream investors have likely been tempted by the Bitcoin bull market over the past year. However, broader Canadian markets have also performed very well. Today, I want to discuss why investors should avoid Bitcoin and look to top growth stocks instead. Let’s jump in.

Why Bitcoin isn’t worth the risk

The price of Bitcoin was trading at US$34,000 at the time of this writing. Bitcoin’s value has nearly halved from the all-time high of US$64,829.14 it reached in the middle of April. Since then, increased regulatory pressure and some tough talk from Tesla co-founder Elon Musk has sent the crypto market into turmoil. I’m not looking to stash Bitcoin or its peers in this uncertain environment. There are top growth stocks on the TSX that can offer superior returns in 2021.

Here’s why Canada Goose can soar this decade

Canada Goose (TSX:GOOS)(NYSE:GOOS) is a Toronto-based designer, manufacturer, and seller of performance luxury apparel. Its shares have climbed 39% in 2021 as of close on June 24. The growth stock is up 65% from the prior year.

The company released its fourth-quarter and full-year fiscal 2021 results on May 13. In Q4 FY2021, total revenue increased 33% from the prior year to $208 million. Moreover, wholesale revenue came in at $33.3 million — up from $25.0 million in the fourth quarter of fiscal 2020. Net income was reported at $2.9 million, or $0.03 per diluted share, compared to $2.5 million, or $0.02 per diluted share, in the previous year.

Canada Goose is on track for strong earnings growth in the years ahead. It has established a strong foothold in luxury winter clothing apparel. The next Winter Olympics in China are a prime opportunity to bolster the brand. This growth stock is still worth owning for the long term.

This growth stock has a bright future in the e-commerce space

Lightspeed POS (TSX:LSPD)(NYSE:LSPD) is a Montreal-based company that provides commerce enabling Software-as-a-Service (SaaS) platform for small and midsize businesses. In late 2020, I’d discussed why investors needed to get in on the surging e-commerce industry. Shares of this growth stock have climbed 200% year over year as of close on June 24.

In Q4 FY2021, Lightspeed achieved revenue growth of 127% to $82.4 million. Meanwhile, Lightspeed Payments put together another record quarter. Recurring subscription and transaction-based revenue grew 137% year over year to $75.3 million. Total revenue for the full year rose 84% to $221 million. Moreover, adjusted EBITDA posted a loss of $21.2 million. That meant adjusted EBITDA improved to negative 9.6% of revenue compared to negative 18% in fiscal 2020.

Investors can expect to see Lightspeed’s first-quarter fiscal 2022 results in early August. The company is on track for strong revenue growth as it expands reach into the e-commerce space. After the quarter ended, Lightspeed announced it would integrate Google tools like Google Inventory Ads and Google Smart Shopping Campaigns.

These growth stocks are a better bet than Bitcoin in the early summer.

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 Ambrose O'Callaghan has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Lightspeed POS Inc and Tesla. The Motley Fool recommends Canada Goose Holdings.

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 »