2 Top TSX Stocks That Could Double Your Wealth

Here are two TSX stocks that offer handsome growth potential for the long term.

| More on:
grow money, wealth build

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Growth stocks have taken a severe beating in the last few months thanks to fast-rising interest rates. Tech names have been badly floundered, while energy stocks have notably multiplied investors’ wealth this year. Nevertheless, here are two TSX stocks that offer handsome growth potential for the long term.  

Vermilion Energy

As this quarterly earnings season unfolds, a few more TSX energy stocks have started looking attractive. Vermilion Energy (TSX:VET)(NYSE:VET) is one such interesting name. Its first-quarter earnings saw massive earnings expansion and free cash flow growth due to higher oil and gas prices. Notably, VET stock has been up 165% since last year. In addition, its recent superior quarterly performance might open up more upside for the future.

A capital discipline has been the highlight for energy producers all this while. Vermilion, too, deployed a large portion of its free cash flows towards debt repayments. Rapidly declining debt and growing earnings will likely push the stock further higher.

VET reinstated its shareholder dividends in the last quarter with a $0.06 per share payout. Though it yields a trivial 1% at the moment, it still has a lot of room to grow its dividends. So, if strength in oil prices persists, VET could continue to outperform.

Interestingly, despite its steep rally, VET stock is trading at an attractive valuation. It is currently trading below five times its earnings, which is way lower than its peers’ average. This indicates a huge upside potential amid the rising energy prices.

Also, with a large portion of Russian oil probably going out of the market, crude oil might continue to climb higher. The world is already short of oil, and a shock on the supply side will likely push the prices higher.


Another TSX growth stock that could unlock meaningful shareholder value in the long term is BRP (TSX:DOO)(NASDAQ:DOOO). In early March, the Powersports vehicle maker saw a solid break out, notably outperforming peer growth stocks.

As travel and discretionary spending gain steam post-pandemic, BRP could see even higher demand for its products. BRP is an $8 billion company that makes popular brands like Ski-Doo and Sea-Doo. It has a presence in more than 130 countries and has a leading market share in niche markets.

BRP reported total revenues of $7.65 billion for the fiscal year 2022, a notable increase of 29% year over year. In addition, the management expects strong revenue growth across all its product segments, ranging from 24% to 29% for the fiscal year 2023.

In the last five years, BRP saw its revenues increase by 13% CAGR and net income expand by a handsome 31% CAGR. This financial growth seeped into its market performance, returning nearly 170% in the same period.

BRP could see more value unlocking with its top-notch product base and re-openings of economies. Interestingly, the stock is trading 10 times its earnings and looks undervalued at the moment.

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 VERMILION ENERGY INC.  Fool contributor Vineet Kulkarni has no position in any of the stocks mentioned.

More on Investing

edit Sale sign, value, discount

3 Cheap TSX Stocks to Buy Before July

Canadian markets have bounced back, but investors can still snag undervalued TSX stocks like Finning International Inc. (TSX:FTT).

Read more »


Is Blackline (TSX:BLN) Stock Worth Your Attention in 2022?

Blackline Safety Corp. (TSX:BLN) stock has struggled in the year-over-year period, but there are some positives to glean from its…

Read more »

stock analysis

Why I’m Buying the Dip in Andlauer (TSX:AND) Stock

Andlauer Healthcare Group Inc. (TSX:AND) stock offered exposure to two promising spaces while offering solid value in late June.

Read more »

clock time
Tech Stocks

Now’s the Time to Load Up the TFSA With These 2 Top TSX Stocks

Here are two top TSX stocks that long-term growth investors may not want to give up on, especially at these…

Read more »

data analyze research
Energy Stocks

TSX Stock Picks With Huge Potential

If you want a TSX stock that's bound for even more strong growth, these three are top picks by analysts.

Read more »

growing plant shoots on stacked coins

Market Plunge: Double Your Cash With 3 Bargain Stocks

These TSX stocks have corrected over 50%, despite their strong fundamentals, and could easily double from here.

Read more »

oil and natural gas
Energy Stocks

Can Cenovus Stock Outperform in H2 2022?

Is now the time for investors in Cenovus (TSX:CVE)(NYSE:CVE) stock to buy more, or wait out this volatility right now?

Read more »

cup of cappuccino with a sad face

The Biggest Regret a TSX Investor Can Have

Hydro One (TSX:H) is a top bond proxy to own if you're a TSX investor who's worried about a pick-up…

Read more »