Three TSX growth stocks are buying opportunities for Canadians looking to multiply their investments through capital gains. Shopify (TSX: SHOP), Viemed Healthcare (TSX: VMD), and 5N Plus (TSX: VNP) are well positioned to break out from the crowd.
Reclaiming lost glory
Shopify could reclaim lost glory if the tech sector sustains its momentum for the rest of the year. positioned to reclaim lost glory. The $106.18 billion global e-commerce platform was once TSX’s most valuable company, dethroned Royal Bank of Canada in May 2020.
The share price rose to a record high of $213.98 on November 19, 2021, but eventually fell back to Earth. Shopify’s freefall started mid-February 2022, when the company forecasted lower or normalized revenue growth in the first quarter (Q1) of 2022. Management based its dim outlook on elevated inflation, lower consumer spending, and decelerating e-commerce sales.
Fast forward to 2023, and Shopify trades at $83.16 per share. While the current stock price is 61.1% lower than its all-time high, the year-to-date gain is 76.90%. In Q1 2023, the erstwhile tech darling reported a net income of US$68 million compared to a net loss of US$1.4 billion in Q1 2022.
Its president Harley Finkelstein said, “Shopify’s strong first-quarter results demonstrate once again that we’re the go-to solution powering businesses of all sizes on every surface where they sell.” Management’s steps to change the shape of the business could result in explosive growth.
Besides more brands joining the platform, Shopify launched several new products, including an artificial intelligence shopping assistant (Shop app) and Commerce Components by Shopify (CCS). IBM Consulting and Cognizant will help accelerate the adoption of CCS and Shopify Plus.
Another good news is that management expects to achieve free cash flow (FCF) profitability for each quarter of 2023.
Strong core business
Viemed is a potential multi-bagger for the strength of its core business. The $486.5 million Louisiana-based company provides respiratory care and technology-enabled home medical equipment services. Management sees a significant market growth opportunity in the aging population and rising Chronic Obstructive Pulmonary Disease (COPD) patients in the United States.
In Q1 2023, revenue grew 22.6% to US$39.55 million versus Q1 2022, while net income declined 13.9% year over year to US$1.51 million. Viemed plans to grow its active patient base in the next 24 months and enter new markets simultaneously. Management also intends to expand service and home-based product offerings through strategic partnerships.
At $12.71 per share, the healthcare stock beats the TSX year to date at +23.76 versus +1.66%.
Screaming buy
5N Plus is a screaming buy in 2023. The $275 million company produces specialty semiconductors and performance materials. Its products enable applications in various industries, including medical imaging, pharmaceutical, industrial, manufacturing, renewable energy, security, and even outer space.
Management is very optimistic about the growth of its Specialty Semiconductors segment that supports critical technology advancements on Earth and in space. The near-term plan is to build on its momentum and meet customer demand in value-added markets. 5N Plus will also focus on products with high-growth potential and superior margins.
At $3.11 per share, investors enjoy a 6.87% positive return year to date. Based on market analysts’ price forecasts, the return potential in one year is 40% ($4.36).
Now or never
Investors can snag Shopify, Viemed, or 5N Plus before they break out. It’s now or never. Otherwise, you might miss the bus.
