Shopify has been a major winner since its Initial Public Offering (IPO). Gaining more than 5,000% since May 2015, investors who managed to get in early have seen incredible gains over that period. As expected, many investors that couldn’t get in on the stock back then are avoiding entering positions now in fears of less impressive gains moving forward.
Fortunately, there are smaller companies that propose very exciting potential. Here are three stocks that could produce massive returns.
e-commerce needs this company
Online retail has been steadily growing over the past decade. Due to the COVID-19 pandemic, investors have seen a lot more money flow into that industry, pushing the stocks of companies operating in the e-commerce space into the stratosphere. One aspect that many investors often overlook is that e-commerce relies on the digital payments space to operate.
Every company that transacts payments online needs some sort of payment platform to complete orders. That’s where Nuvei (TSX:NVEI) comes in.
Nuvei provides an omnichannel payment platform to merchants. Using its platform, companies can transact online and mobile payments, in addition to in-person and unattended solutions. A rapidly growing company, Nuvei is already present in more than 200 global markets.
Its platform also accepts more than 450 payment methods, accepting 150 currencies and 40 cryptocurrencies. Since its IPO in September 2020, Nuvei stock has already gained 124%. At a market cap of $14 billion, this is one company with tons of growth potential ahead.
The pandemic made this an essential company
When the COVID-19 pandemic shook the world, businesses were required to operate remotely. As a result, companies needed to find new ways to train their employees. Enter Docebo (TSX:DCBO)(NASDAQ:DCBO).
The company offers a cloud-based, AI-powered eLearning platform to enterprises. Using its software, training managers can easily assign, monitor, and modify training exercises. As of May 2021, 2,333 customers rely on Docebo to power their employee training programs.
Docebo has managed to grow quickly since its inception. Securing an integration into the Salesforce platform has given the company a lot of exposure. In the back end of 2020, Docebo even managed to land a multi-year partnership with Amazon to power its AWS Training and Certification offerings.
This year, the Docebo-Amazon partnership grew to include Canada as the newest region supported by this joint effort. The regions supported also include Ireland, Frankfurt, Northern Virginia, Singapore, and Sydney. Docebo stock has gained 460% since its IPO but is still only valued at $2.5 billion.
This is one stock you don’t want to miss
Although Topicus.com (TSXV:TOI) isn’t yet a proven entity, you can’t fault investors for jumping the gun. Until this past February, Topicus had been a subsidiary of Constellation Software, one of the most prolific Canadian growth stocks. Although the company now operates as its own entity, it still receives a lot of guidance from Constellation Software. Six members of the Topicus board of directors are executives from Constellation, including its founder and president Mark Leonard.
Topicus is valued at a cool $3.5 billion, even after gaining 42% since its IPO earlier this year. The stock has certainly been one of the bright spots in the struggling tech sector. Some investors may have reason to believe that the company could become as successful as Constellation Software, given that it has the opportunity to learn from the older company without making the same mistakes.
If it can even perform half as well as Constellation Software over the next decade, investors could be looking at massive gains.
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.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Jed Lloren owns shares of Docebo Inc. and Shopify. The Motley Fool owns shares of and recommends Amazon, Constellation Software, Docebo Inc., Salesforce.com, Shopify, and Topicus.Com Inc. 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.