Shopify (TSX:SHOP)(NYSE:SHOP) is indisputably one of the best Canadian stocks. It has delivered Amazon-like phenomenal returns since it went public in May 2015 and has created a massive amount of wealth for its investors. The stellar returns of about 5,784% to date reflect its solid financial performances, growing merchant base, strong fulfillment network, and the addition of newer sales and marketing channels. Its robust growth also justifies its premium valuation.
Though Shopify stock has appreciated a lot, I believe the tech firm is still one of the top investments you can make for the long term. The positive secular industry trends, a continued shift towards e-commerce platforms, and increased online spending are likely to bolster its future growth. Meanwhile, Shopify’s growing payments solutions, the launch of high-value products, global footprint, and improved operating leverage augur well for higher growth. In addition, Shopify’s expanded partnerships with Facebook and Alphabet’s Google could further accelerate its growth rate.
However, for investors who are not comfortable with Shopify’s premium valuation, I have shortlisted three TSX stocks with solid growth potential that could deliver stellar returns in the coming years.
Lightspeed POS (TSX:LSPD)(NYSE:LSPD) is one of my top picks that could deliver sky-high returns like Shopify. Lightspeed has returned about 460% since it got listed on the TSX in March 2019. The high demand for its commerce-enabling platform, strategic acquisitions, and recurring subscription and transaction-based revenues continue to drive its stock.
I expect the demand for Lightspeed’s digital products to remain elevated, despite the economic reopening. Meanwhile, the company’s customer base could continue to grow at a higher pace. Also, Lightspeed could benefit from the increased adoption of its multiple modules by existing customers. Meanwhile, Lightspeed’s focus on strategic acquisitions, expansion in high-growth markets, up-selling opportunities, and product innovation should continue to drive future growth.
Dye & Durham
Dye & Durham (TSX:DND) is another stock with solid growth potential in the long run. It already jumped over 225% since it was listed in July 2020, reflecting strong growth in its revenues and adjusted EBITDA.
I expect Dye & Durham stock to trend higher on the back of its diversified revenues, growing customer base, increasing adjusted EBITDA, and ability to acquire and integrate businesses. Moreover, robust organic and inorganic growth opportunities and global expansion bode well for future growth and could drive its stock higher.
Investors could consider buying high-flying goeasy (TSX:GSY) stock, as it has consistently performed well over the past two decades. Like Shopify, goeasy has made its investors super rich by delivering multi-fold returns. In one year, goeasy stock surged over 194%, while it jumped nearly 2,697% in the past decade. Notably, goeasy’s double-digit revenue and earnings growth has driven its stock higher.
Looking ahead, I expect the sub-prime lender to continue to deliver robust top-line growth. Besides higher revenues, its solid payment volumes and cost efficiencies could cushion its earnings and drive higher dividend payments. Furthermore, new product launches, higher penetration of secured loans, increased loan size, strategic acquisitions, and channel expansion should accelerate its future growth rate.
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. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Facebook, Lightspeed POS Inc, and Shopify. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2023 $1,140 calls on Shopify, short January 2022 $1,940 calls on Amazon, and short January 2023 $1,160 calls on Shopify.