I want to make something clear before I get into the three TSX stocks I’m going to discuss today. Every portfolio should focus on long-term, stable growth. And with these three stocks, that’s not what you’re going to get. Not yet, anyway.
No, most of your portfolio should be planned out with your financial advisor, with maybe 5-10% of it set aside for fun and, yes, riskier investments. So, if that falls within what you’re comfortable with and what your portfolio allows, then, by all means, proceed!
In this case, the three TSX stocks I’m going to discuss have superb long-term potential, but you’ll likely need to wait a while. Now, let’s get into it.
WELL Health
First up we have WELL Health Technologies (TSX:WELL), a company that did quite well recently. Shares popped up over 11% this week after reporting strong earnings. But let me be clear: they reported strong earnings again.
WELL stock continues to be a company investors pick up when the going is good and drop when the going gets rough. And that’s likely to continue for some time, even though the company doesn’t deserve it.
WELL stock continues to expand across North America, and there is a real need for its telehealth technology. That’s not going away anytime soon, and once it’s had a few years more under its belt, I believe this will be a strong and eventually stable company that we continue to see growth from.
In the meantime, shares are down 50% from all-time highs. Still, shares could easily double once more in the next few years once the market recovers.
Canopy Growth stock
A company in a similar position is Canopy Growth (TSX:WEED), which has seen shares shrink down to almost nothing. Canopy stock surged when legalization came to Canada but has continue to fall since then. Even the promise of decriminalization in the United States hasn’t stopped the stock from dropping into oblivion.
And yet, Canopy stock continues to tread on the path to profits. While I’m not necessarily a fan that it continues to lay off workers and close production houses, I also have to admit that as an investor, I’m glad they’re doing something about it.
Hopefully, the company has learned from past mistakes and are now moving forward towards growth. This means focusing on profit makers like BioSteel and moving towards becoming the largest cannabis producer in America.
So, yes, it will certainly take time for Canopy Growth stock to return to what it once was. But it may just get there in the next decade.
Lightspeed Commerce
The last of the TSX stocks I’d consider if you have some time on your hands is Lightspeed Commerce (TSX:LSPD). There’s a reason I’m choosing this e-commerce company over the others, and that’s diversification. This includes both in types of revenue streams as well as locations.
Lightspeed stock continues to grow substantially, proving that its over US$2 billion in acquisitions was worth the cost. The company has come out ahead of earnings estimates quarter after quarter, with its revenue growing 24% year over year most recently and gross payments volume up 75%. Yet as we’ve seen, the stock remains incredibly low.
This, of course, likely has to do with the stock’s tumultuous history from its short-seller report, coupled with the drop in tech stocks. But Lightspeed stock continues to be a strong long-term option among TSX stocks that could absolutely surge in the years to come. And with shares down 50% in the last year, there’s little more falling it can do at this point.
