Investing in stocks is a long-term process, where you shouldn’t expect to become a billionaire overnight. That’s why Motley Fool investors prefer to buy some cheap growth stocks and remain invested for the years. Long-term investors usually tend to enjoy outstanding returns on their investments. However, when you already have a large portion of your stock portfolio invested in safe dividend stocks, you may want to invest the remaining part of your portfolio in some high-growth TSX stocks to get some extraordinary returns.
In this article, I’ll highlight two such explosive Canadian stocks that have already delivered remarkable returns but still seem to have a lot of room to inch up further.
Capstone Mining stock
Capstone Mining (TSX:CS) is the first high-growth Canadian stock that I want to highlight. In the last year, the stock has risen by about 302% to $5.60 per share. It is a Vancouver-based-based metal mining firm with a key focus on copper mining activities. The company’s key assets include two mines: one in Arizona, United States, and the second one in Zacatecas State, Mexico. About 70% of its total revenue in 2020 came from its Arizona-based Pinto Valley copper mine.
While the COVID-19-related operational challenges haunted the mining industry, Capstone Mining’s 2020 revenue rose by more than 8% YoY (year over year). It justifies why CS stock rallied by 213% last year. Its revenue in the first half of 2021 has nearly doubled compared to the first half of the previous year with the help of its increasing copper production. This rise in production is also helping Capstone consistently expand its profit margins and generate record operating cash flow this year.
The company is on track to meet its solid 2021 production guidance of 175 to 190 million pounds of copper. Achieving this strong guidance should boost Capstone investors’ confidence further and drive its stock even higher, I believe. Overall, its stellar earnings growth trend, strengthening balance sheet, and notably improving operating cash flow make CS stock worth buying for long-term investors right now.
Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) is the second TSX stock I want to highlight that has delivered extraordinary returns in the last year. In the last 52 weeks, LSPD stock has risen by 276% to $155.06 per share. After yielding 149% positive returns last year, this high-growth Canadian stock is already up by 71% this year so far.
After looking at this massive rally in Lightspeed stock prices, some may think it’s overvalued. However, looking at its recent financial growth track record, most long-term investors would find this TSX stock really attractive to buy even today. The consistently growing popularity of Lightspeed’s omnichannel commerce solutions helped it post remarkable sales growth in the recent quarter. In the July quarter, the company’s revenue surged 220% to about US$116 million while its gross transaction volume growth stood at 203% YoY.
Lightspeed’s management continues to focus on aggressively expanding its customer base, which could help the company sustain this high growth in the coming years. That’s one of the key reasons why LSPD stock could be a great buy for long-term investors right now.