My Top 5 TSX Stocks to Buy Right Now for Massive Returns in a Decade

Invest in Canada’s hottest stocks to generate significant wealth in a decade.

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Stocks are known for outperforming most of the other asset classes and generating massive returns in the long term. Therefore, one must consider investing in fundamentally strong companies to achieve long-term financial goals faster and with ease. 

It’s important to highlight here that when investing for the long term, one must look for companies with multiple growth catalysts and the ability to grow their revenues rapidly. Further, these corporations must have a growing earnings base or can soon achieve sustainable profit. With this backdrop, let’s look at five Canadian stocks that are my top picks for outperforming the broader markets.

Lightspeed 

Lightspeed (TSX:LSPD) is an attractive stock near the current levels set to deliver massive returns. While the stock is trading incredibly cheap, it continues to produce high recurring or reoccurring revenues. Impressively, Lightspeed’s GTV (gross transaction value) is growing at a breakneck pace (at a compound annual growth rate, or CAGR, of 57% since 2019), while the company is well positioned to benefit from the ongoing digital transformation and increased spending on technology to modernize legacy POS (point-of-sale) platforms.

Lightspeed is streamlining its operations, focusing only on two core products, and targeting high GTV customers. These measures will drive the adoption of its multiple software modules, reduce churn, and lead to higher average revenue per user. Also, its focus on accretive acquisitions augurs well for future growth.

Aritzia

Aritzia (TSX:ATZ) stock is another compelling long-term bet. The solid demand for its offerings, continued strength in the e-commerce business, and attractive sales mix supports its top- and bottom-line growth. While the firm faces near-term sales and margin headwinds, it reiterated its medium-term revenue growth outlook, which is positive. 

Aritzia’s top line is projected to increase at a CAGR of 15-17% through 2027. At the same time, its earnings growth is expected to outpace sales. Overall, solid demand, new boutique openings, expansion of boutiques in high-growth markets, and improving sales mix position it well to outperform the broader markets.

goeasy

goeasy (TSX:GSY) is one of my top picks to generate a considerable amount of wealth in the long term. The financial services company offers loans to subprime borrowers and has consistently delivered double-digit sales and earnings growth over the past several years. Impressively, the momentum in its business will likely sustain in the coming years, which will drive its stock price higher. 

The company’s financials will likely benefit from the large non-prime lending market, high-quality loan originations, stable credit performance, and operating leverage. Notably, goeasy stock has appreciated quite a lot over the past five years. Nonetheless, it has more room to run, considering its low valuation and high growth. Further, the company’s shareholders will likely benefit from higher dividend payouts. 

WELL Health 

WELL Health (TSX:WELL) is a digital healthcare company that has managed to turn profitable quickly. It consistently delivers robust revenue growth despite economic reopening, reflecting its ability to drive omnichannel patient visits. Management remains upbeat and expects the momentum to sustain in the coming years.

Its accretive acquisitions and investments in AI (artificial intelligence) augur well for future growth. Furthermore, strength in its high-margin virtual services business is positive. The stock looks attractive on the valuation front and has the potential to deliver explosive growth. 

Cargojet

Leading air cargo services provider Cargojet (TSX:CJT) could be a solid addition to your portfolio. Thanks to its diversified revenue base, growing e-commerce penetration, and partnerships with top logistics companies, the company remains well positioned to drive its revenue and earnings at a solid pace.

In addition, its next-day delivery capabilities, long-term contracts, cost optimization, and opportunities in the international market bode well for growth. Cargojet is also expected to benefit from its high retention rate and ability to expand its customer base. 

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.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aritzia and Cargojet. The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy.

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