Got $300? Buy These 3 Top Growth Stocks for Superior Returns

Given their high-growth potential, these three growth stocks could be excellent additions to your portfolio.

| More on:
growing plant shoots on stacked coins

Image source: Getty Images

Growth companies will consistently grow their financials above the industry average and deliver higher returns. Meanwhile, many growth companies are trading at a significant discount from their recent highs amid the recent selloff. So, if you plan to add a few growth stocks to your portfolio, here are my three top bets.

Lightspeed Commerce

Yesterday, Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) reported a solid third-quarter performance, with its top line outperforming analysts’ expectations by over 6%. At the same time, its adjusted EPS remained in line with expectations. Year over year, the company’s revenue grew by 165% amid organic growth and contributions from its recent acquisition of Vend, NuORDER, and Ecwid. Its subscription revenue grew by 175%, supported by an expanding customer base and acquisitions. Its GTV increased by 124% year over year to $20.4 billion.

Meanwhile, Lightspeed Commerce’s adjusted EBITDA losses increased from $6.6 million to $7.1 million. However, as a percentage of total revenue, its EBITDA losses declined from 11.4% to 4.7%. After posting a solid performance, the company’s management raised its revenue guidance for fiscal 2022 to be in the range of $540-$544 million. The growth in e-commerce and increased adoption of the omnichannel selling model have created a multi-year growth potential for the company.

Despite its high-growth potential, Lightspeed Commerce currently trades at a 75% discount from its September highs. So, investors should utilize the steep correction to accumulate the stock to earn superior returns over the next three years.

Tilray

Despite the weakness in the cannabis sector, I have selected Tilray (TSX:TLRY)(NASDAQ:TLRY) to be my second pick. It had posted an impressive second-quarter performance last month. Supported by its expanded Cannabis 2.0 product offerings, strong distribution network, and strategic price adjustments, its revenue grew 20% year over year. Also, the company continued to report positive adjusted EBITDA for the 11th consecutive quarter, with its adjusted EBITDA coming at $13.8 million.

Meanwhile, Tilray’s growth prospects look healthy. After acquiring a significant market share in the German medical cannabis space, the company looks to utilize its EUGMP-certified production facilities and robust distribution network to increase its presence in the other parts of Europe. Additionally, the company expects to utilize its two strategic pillars, SweetWater and Manitoba Harvest, to expand its THC business in the U.S. upon legalization. So, its outlook looks healthy.

Although Tilray could be volatile in the near term, I expect it to deliver superior returns over the next three years, given its growth potential and discounted stock price.

Canadian National Resources

After delivering impressive returns of 82% last year, Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) has continued its uptrend returning 25.2% for this year. Despite the surge, the company still trades at an attractive forward price-to-earnings multiple of 9.2, providing an excellent buying opportunity. Oil prices have crossed $85/barrel amid OPEC+ countries struggling to increase their production and rising geopolitical tensions. Meanwhile, analysts expect the upward momentum in oil prices to continue this year.

Higher oil prices could boost the profitability of oil-producing companies, such as Canadian Natural Resources. Meanwhile, the company is investing around $3.6 billion to strengthen its production capabilities, which could increase its upstream production by close to 5%. With its debt falling to $14 billion, its management expects to utilize 50% of its 2022 cash flows for share repurchases, thus boosting investors’ returns. Further, the company had increased its quarterly dividend by 25% in November to $0.5875/share. Its forward yield currently stands at 3.51%. So, given the favourable business environment, Canadian Natural Resources could be an excellent addition to your portfolio.

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.

The Motley Fool recommends CDN NATURAL RES and Lightspeed Commerce. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.

More on Investing

woman data analyze
Dividend Stocks

These U.S. Stocks Are No-Brainer Additions to Your Portfolio

Buy these two no-brainer U.S. stocks if you want to gain exposure to international stocks in your self-directed portfolio.

Read more »

Value for money
Dividend Stocks

1 Value Stock Every Canadian Investor Should Own

This value stock not only has a solid present, but a stable future at incredibly cheap and even oversold prices!

Read more »

consider the options
Tech Stocks

Top 2 Beaten-Down Stocks I’ve Not Given Up on

The massive correction in the prices of these TSX stocks presents a solid buying opportunity at current levels.

Read more »

sale discount best price
Dividend Stocks

Passive-Income Alert: 2 Great Canadian Dividend Stocks Trading at Cheap Prices

TFSA investors can now buy top TSX dividend stocks at discounted prices for a portfolio focused on passive income.

Read more »

Growing plant shoots on coins
Dividend Stocks

Long-Term Investing: 2 Top Dividend-Growth Stocks to Power Your Portfolio

While many growth stocks remain under pressure in this environment, here are two top dividend-growth stocks to buy now and…

Read more »

edit Safety First illustration
Dividend Stocks

2 of the Safest Dividend Stocks on Earth Right Now

Royal Bank of Canada (TSX:RY)(NYSE:RY) is one of the safest stocks on earth, historically speaking.

Read more »

retirees and finances
Bank Stocks

Why You Can’t Rely on the Common Sources of Retirement Income  

Future Canadian retirees can’t rely solely on the common sources of retirement income. However, there are ways to convert savings…

Read more »

TFSA and coins
Dividend Stocks

TFSA 101: How Retirees Can Earn $407.50 Per Month Tax Free for Decades

Retirees can buy top TSX dividend stocks at cheap prices right now for a TFSA focused on passive income.

Read more »