The Toronto Stock Exchange is home to many high-quality stocks that offer attractive returns for long-term investors. Some of these stocks, especially with strong fundamental growth prospects and rising demand for their products and services, also have the potential to deliver explosive growth in the future. Buying such TSX stocks amid the ongoing macroeconomic uncertainties can give investors an edge over the market by increasing their chances of earning market-beating returns over time.
Here are two such TSX stocks with explosive potential for long-term investors that you should consider adding to your portfolio today.
Lightspeed stock
Lightspeed Commerce (TSX:LSPD) is the first TSX stock with explosive growth potential for long-term investors. This Montréal-headquartered company mainly focuses on providing a one-stop commerce platform to merchants, which ultimately helps them improve customer experiences and scale with ease. It currently has a market cap of $2.8 billion as LSPD stock trades at $18.18 per share after witnessing around 35% value erosion so far in 2024, making this growth stock look undervalued to buy for the long term.
In the last 12 months, Lightspeed’s total sales climbed by 24.6% YoY (year over year) to US$863.3 million as it continued to expand its global presence. During the same period, the Canadian commerce services firm’s adjusted earnings stood at US$0.11 per share, significantly better than an adjusted net loss of $0.32 per share in the previous four quarters. In the latest quarter, the company continued to expand its Unified Payments initiative, which has significantly contributed to its gross payment volume.
Overall, one of the main attractions of LSDP stock is its ability to sustain strong sales growth even amid macroeconomic challenges without sacrificing its recent strides toward profitability. Also, Lightspeed continues to remain focused on strategic customer acquisitions, including high-profile restaurants and global retail brands. These are some of the key reasons why I’m strongly bullish about this TSX stock’s long-term growth prospects.
BlackBerry stock
Despite being largely overlooked by many investors of late, BlackBerry (TSX:BB) remains one of my favorite growth stocks on the TSX right now. It currently has a market cap of $2.3 billion as its stock trades at $3.92 per share after sliding by 16.6% year to date.
In the last 12 months, BlackBerry’s total revenue went up by 30% YoY to US$853 million. During these latest four quarters, it posted adjusted earnings of US$0.06 per share compared to an adjusted net loss of US$0.17 per share in the previous four quarters.
This Waterloo-based enterprise software company generates most of its revenue by selling its cybersecurity software solutions to private and public organizations across the world. In addition, BlackBerry, through its IoT (Internet of Things) segment, is also making efforts to gain from emerging automotive industry trends by developing artificial intelligence and machine learning-based advanced technological solutions for carmakers.
These efforts brighten the tech firm’s IoT segment’s long-term growth outlook as the demand for such tech solutions for futuristic mobility is likely to surge in the coming years. That’s one of the reasons why I expect this TSX growth stock to stage a spectacular rally in the long run.
