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3 Canadian Growth Stocks That Could Make You Rich

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Stock investing is your way to get rich. You can realize a fortune with only one great purchase. Some investors use the growth strategy, which is one of the fundamental approaches to building wealth in the stock market. If you’re new to this investing style, learn from Motley Fool’s growth investing 101.

On the TSX, two names are potential multi-baggers, while one offers both income and growth. All three stocks could make you rich in due time. I recommend that you initiate positions this instant if you have idle savings or free cash to invest.

Industry-leading position

Goodfood Market (TSX:FOOD) has delivered a considerable windfall to some Canadians since going public on June 17, 2017. Had you invested $10,000 then, your money would be worth $26,105.26 today, or a total return of 422%. The $730.97 million company is still growing, and the business should prosper further in the post-pandemic.

The global pandemic somehow facilitated the swift business transformation of Goodfood. In the fiscal year 2020 (year ended August 2020), revenue growth was 77% versus the fiscal year 2019. Active subscribers to its fresh meal and grocery shopping solutions increased by 125%.

As of Q3 fiscal 2021 (month ended May 31, 2021), the active subscribers’ count has reached 317,000 — a 256% increase from year-end fiscal 2020. Goodfood will continue to cement its position as the leading online grocery company. Management will also retain future earnings to finance growth.

Exponential growth coming

The global pandemic fueled the gig economy’s growth. Gig worker-based businesses thrived during the pandemic and should remain in the mainstream for good. Payfare (TSX:PAY) is relatively new and began trading on the TSX five months ago. However, the stock has returned 92% already.

Payfare’s share price today is $11.53 from $6 on March 19, 2021. A $5,000 investment then would have produced a gain of $4,608.33. Market analysts recommend a buy rating and forecast a return potential of no less than 28% in the next 12 months.

The business of this $522.32 million company aligns with the gig economy. Payfare provides a free digital banking app for gig workers to experience a full-featured digital banking experience. It also offers gig platforms such as Doordash, Lyft, Uber, and Uber Eats a payment solution.

Lasting strategic momentum

Corus Entertainment (TSX:CJR.B) is among TSX’s top-performing stocks in 2021. Current investors enjoy a 41.8% year-to-date gain on top of the 4.03% dividend. At $5.95 per share, the trailing one-year price return is 87.11%. Market analysts recommend a strong buy rating. Their 12-month average price target is $8.08, although a climb to $10 is possible.

The $1.24 billion media and content company is in recovery mode. Corus’s optimized advertising and new platform revenues grew 32% and 69% in the nine months ended May 31, 2021. From a net loss of $655.6 million, management reported a net income of $152.6 million.

Its president and CEO Doug Murphy said the strong operating execution with significant revenue and segment profit growth across all businesses in Q3 fiscal 2021 is a positive sign. Murphy believes that Corus’s strategic momentum is lasting and should unlock additional value for shareholders in the coming quarters and beyond.

Achieve success

Growth investing isn’t a miss or hit affair. You can achieve success with Goodfood Market, Payfare, and Corus Entertainment, because all three have visible growth potential.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Goodfood Market Corp and Uber Technologies.

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