3 Growth Stocks That Could Double Your Investments in the Next 3 Years

Given their growth prospects, I am bullish on the following three growth stocks.

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Amid solid quarterly earnings and easing recession fears, the Canadian benchmark index, the S&P/TSX Composite Index, has increased by 8% from last month’s lows. Amid the improving investors’ sentiments, here are three top growth stocks you can buy to earn substantial returns over the next three years.

Lightspeed Commerce

Last week, Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) reported its first-quarter performance for fiscal 2023, which ended on June 30. The company reported a revenue of US$173.9 million against analysts’ expectations of US$168.4 million. Its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) losses came in at US$15.6 million, better than analysts’ expectation of US$16.2 million. The strong performances from its Lightspeed Retail and Lightspeed Restaurant drove the company’s financials.

Year over year, the company’s customer locations increased by 11% to 166,000, while its average revenue per customer grew by 39%. The increased adoption of its payment offerings drove its average revenue per customer. However, only 12% of its customers have adopted its payment offerings, thus providing a substantial expansion scope. Lightspeed’s management hopes to make 50% of its customers utilize its payment offerings over the next four years, increasing its cash flows to 20% of its revenue.

Despite the challenging economic conditions and rising inflation, Lightspeed’s management has reiterated its fiscal 2023 guidance. When its competitors are cutting their workforces, the company has announced it will fill 300 jobs worldwide, which is encouraging. So, given its growth prospects and discounted stock price, I expect Lightspeed stock to double in the next three years.

WELL Health Technologies

Second on my list is a digital healthcare company WELL Health Technologies (TSX:WELL), which facilitates healthcare professionals to provide omnichannel solutions. The virtual healthcare sector could witness robust growth over the next few years amid the growing penetration of internet services and increased adoption of telehealthcare services. Meanwhile, Fortune Business Insights expects the sector to grow at an annualized growth rate of 32.1% through 2028.

Meanwhile, WELL Health has continued its growth, with its preliminary results indicating its revenue to exceed $130 million, while its adjusted EBITDA could surpass $23 million. Its U.S. business is growing, with Circle Medical and Wisp delivering solid performances. Circle Medical’s patient visits increased by 400% on a year-over-year basis, while Wisp witnessed a growth of 60%.

Considering its expanding addressable market, improving quarterly performance, and attractive NTM (next-12-month) price-to-earnings multiple of 17.2, I expect WELL Health to deliver solid returns in the coming years. 


My final pick is goeasy (TSX:GSY), a subprime lender that operates easyfinancial and easyhome segments. It provides consumer lending and furniture leasing services. Despite double-digit revenue growth for the last 20 years, the company has acquired just 3% of its addressable market (loans less than $50,000), providing it with substantial growth prospects.

Despite the weaker economic outlook, goeasy has continued its growth, with its revenue growing by 46% in the first quarter while its operating income increased by 26%. The company’s management projects strong growth over the next three years, with its revenue projected to grow by 55% from 2021 levels. Its operating margins could improve by 100 basis points annually while delivering an annual return on equity of over 22%.

Despite its growth potential and solid fundamentals, goeasy trades at an attractive NTM price-to-earnings multiple of 10.1. Considering all these factors, I believe goeasy will deliver substantial returns in the long run.

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 Lightspeed Commerce. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.

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