Through October, stocks on the S&P/TSX Composite Index have climbed 2.8% to a record of +21,000 points. Much of this has been supported by oil stocks. However, technology and growth stocks have also had a nice rebound in the month.
Certainly, given concerns about inflation, interest rates, the pandemic, and geopolitical issues, another 10% correction this year is not out of the question. Yet, the last few months are traditionally pretty favourable for stocks.
Consequently, I still think it is a good time to be invested. So, here are three fast-growing TSX stocks that I am bullish on for the rest of the year and long beyond.
Nuvei: A leading TSX payments stock
Nuvei (TSX: NVEI)(NASDAQ: NVEI) has had an incredible run-up in 2021. This TSX stock is up 100% since the start of the year! Since its initial public offering (IPO) late last year, its stock is up 262%!
With a price-to-sales ratio of 33, this stock is undoubtedly not cheap. Yet, Nuvei consistently impresses the market with strong +70% revenue growth. Also, it is actually profitable. That is a rare find in the high-growth Canadian tech space.
TELUS International: A top IPO this year
Both organically and through acquisition, Nuvei continues to expand and scale its global payments platform. The more scale it has, the more profitable it becomes. This is still early innings for this business, so buying it on any market volatility could be a great opportunity.
Speaking about interesting IPOs, TELUS International (TSX: TIXT)(NYSE: TIXT) has been impressive in 2021. It was spun out of its large telecom parent, TELUS Corporation in February of this year. For a number of months, this TSX stock didn’t do anything. I think the market was parsing TIXT’s business from its more boring, dividend-paying parent.
However, since September, this TSX stock has jumped up almost 30%. TIXT helps major corporations digitize their entire business platforms. It has a unique focus on artificial intelligence, data analytics, and digital customer experience.
These are very fast-growing areas of technology. Likewise, last quarter it announced some pretty big customer wins. I think this should propel some strong company returns this year. The set-up could even be better next year.
Aritiza: A fast-growing TSX retail stock
Another TSX stock that recently impressed the market is Aritzia (TSX: ATZ). Despite the pandemic and supply chain challenges this year, it recently released earnings results that were far better than anyone anticipated. Sales and adjusted EBITDA were up from last year by 75% and 390%! Likewise, it raised its outlook for this year.
The fact is, Aritzia has great innovative clothing products, strong omnichannel sales optionality, top locations, and huge markets to grow into. It is complemented by a top-notch founder-led management team and a very conservative balance sheet.
If you are looking for a stock to replicate the massive success of Lululemon in the clothing retail market, this TSX stock might be it. It is in the early innings of its U.S. expansion. Similarly, international markets could be on the horizon soon. Today, Aritzia stock is pretty expensive. However, I would take any significant pullback as a great opportunity to buy this high-growth stock.
