2 Stocks That Could Turn $1,000 Into $5,000 by 2030

Here are two amazing Canadian stocks that can help you multiply your hard-earned savings at a fast pace in the next five to six years.

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After witnessing 8.7% value erosion in the previous year, the TSX Composite benchmark recovered 8.1% in 2023, with growing expectations that the Federal Reserve and Bank of Canada will soon start slashing interest rates. As the macroeconomic scenario continues to improve, this could just be the start of a long-term rally.

Investing in the stock market is largely about identifying the right companies with the potential for significant growth in the long term. While most investments carry risks, picking the right stocks at the right time can help you expect some eye-popping returns and build wealth over time. In this article, I’ll highlight two top Canadian stocks that I believe have the potential to turn $1,000 into $5,000 by 2030 due primarily to their solid fundamental outlook.

goeasy stock

goeasy (TSX:GSY) has been one of the best-performing Canadian stocks of the past decade, soaring around 876% in the last 10 years. If you don’t know much about it already, it’s a Mississauga-headquartered nonprime leasing and lending services provider that owns brands like easyhome, easyfinancial, and LendCare. GSY has a market cap of $2.6 billion as its stock trades at $153.76 per share with a 2.7% month-to-date loss.

Although the challenging macroeconomic environment has affected most Canadian bank stocks of late, the strength of goeasy’s financial growth trends could be understood by the fact that it has consistently been beating Street analysts’ earnings estimates for six consecutive quarters. In the first three quarters of 2023 combined, goeasy’s total revenue rose 22.7% YoY (year over year) to $321.7 million. Similarly, its adjusted earnings in these nine months rose nearly 20% from a year ago to $10.19 per share.

In the quarter ended in September 2023, goeasy’s loan originations rose 13% YoY, and its overall loan portfolio witnessed a 33% expansion. As expectations of reduced interest rates in the future drive loan demand further up, I expect its financial growth trends to improve further and help its share prices inch up.

Nuvei stock

Nuvei (TSX:NVEI) could be another fundamentally strong Canadian stock to consider at the start of 2024 that has the potential to multiply your hard-earned savings in the next five to six years. This Montréal-based fintech firm currently has a market cap of $4.8 billion as the stock trades at $34.14 per share after rallying by more than 80% in the last three months. Despite this outstanding recovery, however, NVEI stock has lost nearly 26.5% of its value in the last 12 months, making it look undervalued to buy for the long term.

Despite facing pandemic-driven operational challenges and recent macroeconomic woes, Nuvei has managed to post strong financial growth in the last few years, thanks to the consistently expanding presence of its reliable global payment technology network and focus on driving profitable growth.

In the first three quarters of 2023, Nuvei’s total revenue jumped 39.4% YoY to US$868.4 million, with 24% growth in its organic total volume at constant currency. While a temporary increase in its net financial costs affected its adjusted earnings in these nine months, it still appeared on track to post positive earnings in the full year 2023.

Growing demand for its services globally and expanding customer base with more partnerships are likely to help Nuvei deliver stronger financial growth in the years to come, which can help its share prices soar.

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 has positions in and recommends Nuvei. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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