The 3 Best Canadian Stocks to Buy With $300 Right Now!

Investors with a small amount of capital can look to add growth stocks such as Lightspeed POS and Nuvei to their portfolios.

| More on:
money cash dividends

Image source: Getty Images

Investing in the equity markets in a long-term game. You need to identify companies with robust business models and rapidly expanding addressable markets that will allow them to grow revenue and earnings at a fast clip. Growth stocks remain the best bet for investors with a long-term horizon, as these companies have the potential to deliver exponential returns.

It also means growth stocks can turn a minuscule investment into a small fortune. For example, $300 invested in Shopify stock just after its IPO would be worth close to $50,000 today.

We’ll look at three such TSX stocks that you can buy with $300 right now.

Kinaxis stock should be on your radar

The first company on my list is Kinaxis (TSX:KXS), a SaaS (Software-as-a-Service) company operating in the supply chain vertical. The company provides cloud-based subscription services for supply chain operations, which have seen strong demand from enterprises.

Kinaxis stock is up 1,200% since it went public back in 2014, but it is also down 25% from record highs, giving investors an opportunity to buy the dip.

In the first quarter of 2021, the company’s SaaS revenue rose 19% to $40.57 million, while total sales grew 9% to $57.8 million. Kinaxis has forecast sales in 2021 to range between $242 million and $247 million. SaaS sales are forecast to rise between 17% and 20% with an EBITDA margin between 11% and 14%. The company expects SaaS revenue to grow between 23% and 25% post-2021 over the next few years.

Nuvei is a profitable fintech company

A fintech company that is fast gaining traction is Nuvei (TSX:NVEI). Valued at a market cap of almost $14 billion, NVEI stock has more than doubled since its IPO last year. Nuvei has, in fact, grown its sales from $124 million in 2017 to $375 million in 2020. This spectacular growth has also helped it improve its bottom line. The company’s operating income rose from $11.5 million in 2017 to $72 million in 2020.

Bay Street analysts expect Nuvei sales to rise by 70% year over year to $637 million in 2021 and by 20% to $726.5 million in 2022.

Nuvei provides payment technology solutions to merchants in North America and other international markets. These solutions aim to support the transaction lifecycle, increasing customer engagement in the process.

In Q1 of 2021, the company’s sales were up 80% at $150 million, while gross transaction volume rose over 100% to $20.6 billion. Nuvei’s adjusted EBITDA was up 97% at $65.5 million, while net income tripled to $0.35 per share.

Lightspeed POS

One of the rising stars on the TSX is Lightspeed POS (TSX:LSPD)(NYSE:LSPD), another Montreal-based fintech company that provides a cloud-based platform to empower small- and medium-sized businesses in more than 100 countries. Its suite of point-of-sale solutions helps retailers and restaurants sell products across channels while managing operations and engaging with customers.

Lightspeed has over 100,000 customers, and no single client generates over 1% of total sales. Further, over 33% of total revenue is derived in international markets and its customers increase spending by 20% in their first full year on the LSPD platform.

Lightspeed has focused heavily on accretive acquisitions, allowing the company to increase sales from US$57 million in fiscal 2018 to US$221 million in fiscal 2021.

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 Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Lightspeed POS Inc and Shopify. The Motley Fool recommends KINAXIS INC and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.

More on Tech Stocks

calculate and analyze stock
Tech Stocks

Growth Stocks: A Once-in-a-Decade Opportunity to Get Rich

Growth stocks are generally cheap now. So, this year is a good opportunity to shop for growth stocks, perhaps through…

Read more »

grow money, wealth build
Tech Stocks

$10,000 Invested in These Growth Stocks Could Make You a Fortune Over the Next 10 Years

Growth stocks such as Dollarama and Chewy are well poised to deliver outsized gains to long-term investors.

Read more »

online shopping
Tech Stocks

Is Shopify Stock a Buy in March?

Shopify stock has had a volatile run, but fundamentals are strong, and valuations are much lower after its 71% decline.

Read more »

data analyze research
Tech Stocks

2 Top Stocks to Buy in March 2023

Given their solid financials and high-growth prospects, these two stocks are excellent buys right now.

Read more »

Male IT Specialist Holds Laptop and Discusses Work with Female Server Technician. They're Standing in Data Center, Rack Server Cabinet with Cloud Server Icon and Visualization
Tech Stocks

Is Kinaxis Stock a Buy at 52-Week Highs?

Kinaxis stock is up 31% in the last six months, though 5% in the last year. So as the stock…

Read more »

healthcare pharma
Tech Stocks

Should You Buy WELL Health Stock After Q4 Earnings?

Given its solid financials, healthy growth prospects, and attractive valuation, I am bullish on WELL Health.

Read more »

A data center engineer works on a laptop at a server farm.
Tech Stocks

2 Tech Stocks That Could Set You Up for Life

Canadian investors can set themselves up for the future with top tech stocks like Descartes Systems Group Inc. (TSX:DSG).

Read more »

dividends grow over time
Tech Stocks

Got $1,000? Buy These Hot Growth Stocks Before They Take Off

Investors won’t want to miss these buying opportunities. Here are three discounted growth stocks to load up on today.

Read more »