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3 of the Best Canadian Stocks to Buy With $3,000

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The continued economic expansion, recovery in earnings, and growing consumer demand is driving TSX stocks higher, despite the resurgent virus in the background. 

So, if you have $3,000, here are three top Canadian stocks to invest in right now. Notably, these companies delivered stellar returns in the past and could continue to generate outsized returns owing to the improving operating environment.

Lightspeed POS

Lightspeed POS (TSX:LSPD)(NYSE:LSPD) continues to deliver solid quarterly performances amid increased demand for its digital products and services. Its top line spiked 220% year over year in the most recent quarter, reflecting triple-digit growth in the subscription and transaction-based revenues.  

The continued strength in its base business and benefits from its acquisitions of ShopKeep, Upserve, and Vend drove its overall financials. Lightspeed’s customer base continued to grow rapidly. Meanwhile, it witnessed a strong rebound in the hospitality sector and expanded its Payments offerings in the EMEA regions, which is encouraging.

The shift in selling models towards the cloud-based omnichannel platform could provide a multi-year growth opportunity for Lightspeed. Meanwhile, its growing recurring subscription revenues, focus on accretive acquisitions, global expansion, and increased customer base should continue to boost its financials. Also, up-selling opportunities to existing customers, adoption of its multiple software modules, and innovation could accelerate its growth rate and drive its stock price higher.

Scotiabank

Canadian banking giant Scotiabank (TSX:BNS)(NYSE:BNS) is another top stock that could benefit from the continued economic recovery and improvement in demand. The stock has gained about 50% in one year, and I expect the momentum to sustain, reflecting continued growth in its profitability. 

I believe its diversified revenue base, operating leverage, improving efficiency, and solid credit performance will continue to cushion its profits. Furthermore, lower credit loss provisions, exposure to high-growth banking markets, and improved loan and deposit volumes are likely to accelerate its growth.

Notably, Scotiabank has consistently rewarded its shareholders through higher dividend payments. Thanks to its strong earnings base, I believe the bank could continue to offer higher dividends in the future. Besides offering growth and income, Scotiabank stock is trading cheap and looks attractive at current levels. Its P/B (price-to-book value) multiple of 1.5 is way lower than its peers and indicates further room for growth in its stock price.

goeasy

Besides Scotiabank, investors could consider buying goeasy (TSX:GSY) stock in the financial space for outsized returns. goeasy stock has delivered impressive returns of over 209% in one year, reflecting an improvement in the operating environment and recovery in consumer demand. 

goeasy continues to fire on all cylinders, with its top and bottom line growing at a breakneck pace, thanks to the higher loan volumes and large sub-prime lending market. Looking ahead, I expect higher credit offtake, geographic and channel expansion, new product launches, and accretive acquisitions to continue to support its revenues and profitability.

Furthermore, increased penetration of secured loans, strong payment volumes, and productivity savings augur well for future growth. goeasy has also enhanced shareholders’ returns through higher dividend payouts. Notably, it has raised dividends in the past seven years. Meanwhile, its high-quality earnings base and good growth prospects could continue to support higher dividend payments in the coming 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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Lightspeed POS Inc. The Motley Fool recommends BANK OF NOVA SCOTIA.

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