These High-Growth TSX Stocks Could Double Your Money

Looking for some top high-growth opportunities on the TSX today? Here are two of my favourite TSX stocks that could still double over the next few years!

| More on:
grow dividends

Image source: Getty Images

While 2021 may be the year of the value trade, TSX growth stocks have still fared pretty well. Over the summer, we have seen some of Canada’s leading technology stocks recover in a strong fashion. In fact, many of these stocks are hitting fresh all-time highs.

While valuations have certainly risen, many of these businesses are leaders in their sector and are producing very strong, consistent results. Similarly, their businesses are often supported by strong competitive moats and/or favourable economic and societal tailwinds.

Given this, here are two high-growth TSX stocks that could each double sooner than you expect.

Lightspeed POS: A top TSX growth stock

Lightspeed POS (TSX:LSPD)(NYSE:LSPD) is not a cheap stock by any metric. It trades at a price-to-sales multiple of 72 times! Similarly, this company is not yet profitable. Regardless, investors are willing to pay up to own this stock for a reason.

Just yesterday, it released first-quarter results and blew away the market’s expectations. This TSX stock jumped by more than 7% after earnings. Revenues increased year over year by 220% to more than US$115 million. Gross transaction volumes expanded by 203% to $16.3 billion. While the company took a larger-than-expected net loss in the quarter, the loss was mostly due to acquisition-related costs.

Lightspeed has been positioning itself to become an all-inclusive commerce platform for small- and medium-sized retailers and restauranteurs worldwide. While it provides point-of-sale solutions, its omnichannel platform and services span far beyond that. Indeed, its platform has become a crucial extension of many retailers’ businesses.

Over 90% of revenues are recurring and its customer retention has been very strong. The company still has $603 million in cash, so further acquisitions are not out of the question this year. There are still thousands of merchants on legacy systems, so Lightspeed continues to enjoy a large addressable market.

While I might wait for a cheaper entry point, this TSX stock could still more than double over the next few years.

Top TSX growth stocks versus TSX index

Topicus.com: A technology play on Europe

Another intriguing growth stock is Topicus.com (TSXV:TOI). Since its initial public offering early this year, this TSX stock has returned nearly 58% to early buyers. While perhaps not as well known as Lightspeed, Topicus is the child of a TSX legend, Constellation Software.

Topicus was spun out as a means of concentrating and monetizing Constellation’s growing software platform in Europe. Topicus is actually the combination of two entities: one is growing organically, while the other is growing by means of aggressive consolidation (much like Constellation).

I like this stock because it offers crucial software services to clients, particularly in the banking, education, and government sectors. Once a customer is onboarded, revenues are very predictable and sticky.

This TSX stock just produced solid quarterly results. Revenues grew over last year by 54%. In addition, 8% of that growth was produced organically by its current operations. The earnings picture for this stock is a little hazy due to non-cash gains realized on some convertible preferred securities. Those will be converted by early next year, so that should largely clear up earnings results in the future.

Topicus announced a larger energy-focused software acquisition just last week. This TSX stock should see some decent cash flow growth as it integrates this (and other smaller acquisitions) into its empire.

This company has a great management team, leading software assets, and the experience and guidance of a board populated with Constellation’s top managers. You will need to be patient, but this stock could also double your money over the next few years.

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 Robin Brown owns shares of Constellation Software, Lightspeed POS Inc, and Topicus.Com Inc. The Motley Fool owns shares of and recommends Constellation Software, Lightspeed POS Inc, and Topicus.Com Inc.

More on Tech Stocks

Concept of big data flow, analysis, and visualizing complex information for artificial intelligence
Tech Stocks

Attention, TFSA Investors: These 2 AI Stocks Look Dirt-Cheap

Constellation Software (TSX:CSU) and another AI stock are looking way too cheap to ignore any longer.

Read more »

A chip in a circuit board says "AI"
Tech Stocks

3 Canadian Tech Companies Ready to Ride the AI Train

Some business models and technologies are naturally more receptive to AI transformation than others and, consequently, are ready for AI-fueled…

Read more »

Circuit board with a microchips
Tech Stocks

3 Promising AI Stocks That Are Cheaper Than Nvidia

Nvidia is positioned to outpace the broader markets in the future. But these three AI stocks may have higher upside…

Read more »

Young woman sat at laptop by a window
Tech Stocks

Could Docebo Stock Reach $200?

Down 55% from all-time highs, Docebo stock trades at a discount to consensus price target estimates in 2024.

Read more »

potted green plant grows up in arrow shape
Tech Stocks

2 Stocks Under $50 That Could Double Your Money in 5 Years

Growth stocks can help you double your money in the next five years. And you don’t need hundreds of dollars…

Read more »

A bull and bear face off.
Tech Stocks

Bull Market Buys: 1 Top Tech Stock to Own Right Now

Down 40% from all-time highs, Datadog stock trades at a discount to consensus price target estimates in 2024.

Read more »

Money growing in soil , Business success concept.
Tech Stocks

The Smartest TSX Growth Stocks to Buy in July 2024

If you are looking for some smart growth stocks, here are four to look at right now.

Read more »

Man data analyze
Tech Stocks

Is Shopify Stock’s Growth Sustainable?

There's a reason Shopify stock (TSX:SHOP) has been getting analyst upgrades, and investors should be paying attention.

Read more »