Got $500? 3 Top TSX Canadian Stocks to Buy Right Now

If you got extra cash, consider buying these three Canadian stocks for outsized gains in the long term.

| More on:
money cash dividends

Image source: Getty Images

While the Canadian stock market is creating new highs, a few high-growth stocks have marked a healthy pullback. This represents a solid opportunity for long-term investors to buy and hold high-quality stocks for outsized gains. Let’s take a look.

Lightspeed Commerce

The massive drop in Lightspeed Commerce’s (TSX:LSPD)(NYSE:LSPD) stock price and its solid fundamentals make it a top long-term investment. For context, the negative report from the short-seller and the expected moderation in its growth rate led investors to dump Lightspeed stock. 

While Lightspeed’s organic growth could witness a slowdown due to tough year-over-year comparisons and seasonality, its long-term prospects remain intact. Moreover, Lightspeed stock has corrected by about 48% from its peak, indicating a solid opportunity to buy its stock at the current price levels. 

I am bullish on Lightspeed and expect demand for its digital products to remain elevated amid the ongoing shift in selling models towards the omnichannel platform. Despite the moderation in growth rate, Lightspeed’s organic sales remain strong, and I expect new product launches, geographic expansion, and adoption of multiple modules from existing customers to support its growth. Further, acquisitions, customer growth, and a large addressable market support my favourable outlook. 

Nuvei

Nuvei (TSX:NVEI)(NASDAQ:NVEI) stock is another solid long-term investment. The company is growing fast (97% growth in revenues and 102% increase in adjusted EBITDA during the first nine months of 2021) and benefiting from the increased digital payments adoption. 

Further, shares of this digital payments processing company have corrected nearly 22% from the 52-week high, representing an opportunity to accumulate it at current levels. Nuvei will likely benefit from favourable industry trends, customer acquisitions, and a growing portfolio of alternative payment methods. Further, geographic expansion, its growing scale, and focus on high-growth verticals will likely support the upside in its stock. 

Also, the ongoing strength in its direct sales channel, strong sales pipeline, and product expansion augur well for growth. 

goeasy

With its resilient financial and operating performance and high growth, goeasy (TSX:GSY) stock is must-have in your investment portfolio. goeasy stock has consistently outshined the benchmark index over the past several years. Moreover, it remains well positioned to deliver outsized returns and outperform the broader markets over the next decade. 

My bullish view on goeasy stock stems from its ability to grow its profitability at a rapid pace. Notably, goeasy’s adjusted net income has consistently increased at a solid double-digit rate over the past several years. Moreover, this subprime lender has boosted its investors’ returns by hiking its dividends at a CAGR of 34% in the last seven consecutive years.

I expect the improving economic conditions, strong loan originations, recent acquisitions, and product expansion to continue to drive its top line at a double-digit rate over the next several years. Further, channel expansion and its growing footprint bode well for growth. The expected double-digit growth in its top line, solid credit performance, and operating leverage will likely drive its earnings at a breakneck pace and drive its stock price. 

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 Nuvei Corporation. The Motley Fool recommends Lightspeed POS Inc.

More on Tech Stocks

money cash dividends
Tech Stocks

The Best TSX Stocks to Invest $5,000 in Right Now

These Canadian stocks have the potential to beat the broader market averages in the long term and generate solid capital…

Read more »

grow dividends
Tech Stocks

3 Monster Stocks to Buy Without Hesitation

Are you looking for great stocks to buy today? Here are three monster stocks you should buy without hesitation!

Read more »

telehealth stocks
Tech Stocks

WELL Health Stock Zoomed 15% After Earnings: Is it a Buy?

WELL Health stock is reporting record demand as revenue soars and guidance is increased once again.

Read more »

online shopping
Tech Stocks

Is it Time to Buy E-Commerce Stocks?

Are you curious about e-commerce stocks? Find out if I think it’s time to buy them!

Read more »

Growing plant shoots on coins
Tech Stocks

Is Now the Right Time to Buy Growth Stocks?

There are so many growth stocks that investors wish they'd bought back when they were down. Now, they're definitely down,…

Read more »

money cash dividends
Tech Stocks

2 Growth Stocks You Can Buy Right Now with Less Than $100

Given their solid performances, cheaper valuations, and healthy growth prospects, these 2 under-$100 growth stocks look attractive at these levels.

Read more »

potted green plant grows up in arrow shape
Tech Stocks

2 TSX Stocks Provide That Provide Tonnes of Consistent Growth

Here's why Constellation Software (TSX:CSU) and Restaurant Brands (TSX:QSR) are two top TSX stocks to buy for growth right now.

Read more »

falling red arrow and lifting
Tech Stocks

This Tech Stock, Down 70%, Could Rip if Interest Rates Change

Shopify (TSX:SHOP) stock is down 70%, but it could rise again.

Read more »