If investors are able to choose the right stocks to invest in over the long term, they could put themselves in a position of financial independence in the future. However, doing so is no easy task. In addition, investors need to make sure to hold onto those shares long enough to see the massive gains that come with having the position. More often than not, investors will sell off shares after seeing small gains in order to “lock in profits.” Here are three stocks to consider investing $10,000 in right now.
A strong history of growth
Over the past six years, few companies on the TSX have managed to outperform Shopify (TSX:SHOP)(NYSE:SHOP). In order to support that claim, we only need to look at the TSX30. This is a list of the 30 best-performing stocks on the TSX over a running three-year period. In the 2020 edition of the list, Shopify ranked in first place. It was so far ahead from the rest of the field that its gains over that period were nearly the sum total of the next three companies combined. In 2021, Shopify ranked second.
While that may cause some investors to think Shopify’s best years are behind it, I would argue the opposite. The e-commerce industry is still much closer to its infancy than its maturity in Canada. In April 2020, online sales represented about 11% of all Canadian retail sales. However, in other parts of the world, online sales were accounting for 30% or more of all retail sales. Shopify has already turned $10,000 into nearly $550,000 since its IPO, but there’s still a lot more to come.
Poised to benefit from the rise of e-commerce
Shopify isn’t the only company listed on the TSX that is in a position to succeed alongside the growing e-commerce industry. Nuvei (TSX:NVEI) should see massive growth in the coming years. The company first made headlines on its IPO. On its first day of trading, Nuvei closed the largest tech IPO in Canadian history. This means that the company managed to raise more money through its IPO than popular growth stocks like Shopify and Lightspeed.
Nuvei provides merchants with an omnichannel payments platform. Using its software, businesses can accept online, mobile, in-store, and unattended payments. Nuvei is present in more than 200 global markets, accepts 480 payment methods, 150 currencies, and 40 cryptocurrencies. In its latest earnings presentation, the company reported a 114% year-over-year increase in its quarterly revenue. That news caused a 16% spike in Nuvei stock the following day. This could be a top stock for many years.
A top growth stock
Investors familiar with my writing should also be familiar with Topicus.com (TSXV:TOI). The company has been one of the best performers on the TSX since its IPO in February. One of the most appealing aspects of this company is its close ties to Constellation Software. For those that are unfamiliar, Topicus was a subsidiary of the larger tech company until this past February. Although it now operates as its own entity, Topicus is still very much influenced by its former parent company.
If Topicus is able to lean on the wealth of experience that Constellation provides, then it could avoid some of the mistakes that Constellation made early on. This could allow Topicus to see massive growth in the coming years. If Topicus stock can return even half of the returns that Constellation has generated over the past decade, investors should be very happy.