2 TSX Stocks for a Legit Shot at $1 Million in 20 Years

Here are three of the top TSX stocks long-term growth investors may want to consider adding to their portfolios to generate long-term capital gains.

| More on:
financial freedom sign

Image source: Getty Images

Nearly all investors with big-time gains over the long term have seen a majority of their portfolio gains result from long-term capital appreciation. To achieve this feat, such investors usually purchase high-growth stocks which can exhibit significant growth over a long investment horizon. 

However, for the success of this strategy, choosing the right companies is a must. They must have strong financials as well as adequate long-term growth prospects. Here are two Canadian stocks investors can consider.  

Shopify

Shopify (TSX:SHOP) is a Canadian e-commerce giant which runs operations across the U.S., Asia, Asia Pacific, the U.K., Latin America and the Middle East. Notably, Shopify recently entered into an agreement with Amazon to add the “Buy with Prime” feature on its platform. This is a key integration many investors point to as a growth catalyst worth betting on for the long term.

This will not only enable Prime members to avail fast deliveries from Shopify but also make payments to the latter using Amazon wallet. For Shopify merchants, it is an excellent opportunity to access a new customer base and increase their business’s outreach.

Additionally, in the second quarter (Q2) of 2023, Shopify’s total revenue rose by 31%, with figures reaching US$1.7 billion. Its merchant solutions revenue and subscription solutions revenue reached US$1.3 billion and US$444 million, indicating 35% and 21% growth, respectively.   

Shopify is also integrating AI solutions on its platform. For instance, Shopify Magic is a collection of AI-based features which help merchants seamlessly run their business. Also, there is Sidekick, an AI-powered commerce assistant, which can help businesses in ways like increasing operational efficiency, improving productivity, streamlining workflows and more.  

In terms of growth catalysts, Shopify is a company that appears to be firing on all cylinders. In 2023, so is its stock price. Thus, for those seeking both momentum and growth, SHOP stock appears to be a great pick right now.

Kinaxis

Kinaxis (TSX:KXS) is an international cloud-based supply chain solutions provider. Interestingly, in August, Subaru decided to expand its usage of this company’s platform to streamline its supply chain management. Subaru’s U.S. subsidiary has already been using Kinaxis for demand and inventory planning.

But now, Subaru Japan has decided to make this company a part of its global supply chain. This is excellent news for investors as it will help Kinaxis increase its presence in the global cloud solutions market. Apart from this, the organization has developed new product innovations to facilitate end-to-end supply chain orchestration. 

For instance, Enterprise Scheduling will facilitate the creation and management of global production scheduling strategies. Additionally, Supply Chain Execution will enable organizations to bridge the gap that exists between planning and execution. 

Such offerings will help clients to take their supply chain management to a new level, thereby gaining increased operational efficiency, reduced costs and enhanced risk mitigation. For those seeking a company with a strong business model able to provide consistent and reliable growth, Kinaxis is a great choice.

Bottom line

Both stocks are in a position to facilitate significant capital appreciation in the long run. Thus, for a legit shot at $1 million, investors can consider buying and holding these stocks over the next 20 years. 

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.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Chris MacDonald has positions in Amazon.com. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Amazon.com and Kinaxis. The Motley Fool has a disclosure policy.

More on Investing

stock research, analyze data
Dividend Stocks

How Much to Invest to Get $500 in Dividends Every Month

TSX dividend stocks such as Enbridge, TD Bank, and Telus, can help you earn $500 in monthly dividend payments.

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

Clean Energy Play: Is Brookfield Renewable a Good Stock for a TFSA?

Add this top renewable energy stock to your self-directed TFSA portfolio for significant long-term and tax-free wealth growth.

Read more »

Golden crown on a red velvet background
Dividend Stocks

Dividend Powerhouses: Canadian Stocks to Fuel Your Portfolio

These two top Canadian dividend aristocrats are some of the top stocks on the TSX to buy now and hold…

Read more »

Dial moving from 4G to 5G
Dividend Stocks

This Undervalued Dividend Stock is Worth Buying Right Now

Want an undervalued dividend stock with long-term potential and a juicy yield? Here's an option you may regret not buying…

Read more »

A worker gives a business presentation.
Dividend Stocks

1 Stock I’m Buying Hand Over Fist in July Despite the Market’s Pessimism

This top dividend stock is going through a rough patch, but don't let that count out all the growth we've…

Read more »

financial freedom sign
Investing

2 Stocks With Millionaire-Maker Potential

These two top Canadian stocks are among the best on the TSX, and each has the potential to be millionaire-maker…

Read more »

Piggy bank next to a financial report
Stocks for Beginners

Is It Finally the Right Time to Buy Bank Stocks?

Canadian bank stocks are some of the most secure investments out there, but of them all, this bank stock is…

Read more »

clock time
Investing

3 Blue-Chip Stocks Every Canadian Should Own

Want some reliable blue-chip Canadian stocks to buy and hold for the next 10 years? These three stocks are worth…

Read more »