Although $50 may not seem like much, it’s enough to kickstart any portfolio. The key to putting money to work in the market, however, is finding no-brainer stocks with the potential to appreciate over time, and preferably provide some income along the way.
The three companies I’ve listed below can mostly be described as growth stocks; however, there is an income component to one pick. That said, the reality is that these are three companies I think have the potential to outperform over the next decade or two. So, for those with a long-term investing time horizon, starting small and getting started is advised. Any amount, even $50, is enough to start building a portfolio.
Here’s why I’d start looking at these three picks for those in this boat.
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Lightspeed Commerce
Lightspeed Commerce (TSX:LSPD) is perhaps the riskiest pick on this list. But I’ve included Lightspeed as I believe the company’s growth profile may be well-suited for most investors looking for big capital appreciation over the long term.
The company provides an omnichannel commerce-enabling SaaS platform. It assists customers by helping them to engage with their consumers, manage their operations, enhance their businesses, and accept payments through its software. Lightspeed predominantly operates in Canada, the United States, the Netherlands, Australia and other countries.
Over the past few quarters, Lightspeed has made significant profits to achieve sustainable growth. Lightspeed reported quarterly earnings of $0.06 per share in the fourth quarter of 2023. Moreover, the company has surpassed consensus EPS estimates four times in the last four quarters. If this trend of earnings outperformance continues, I expect the stock’s relative underperformance may revert. That’s going to be more true if we get the rate cuts many have penciled in for this year and next.
Air Canada
Canada’s largest airline services provider, Air Canada (TSX:AC) remains the optimal choice for investors looking for exposure to domestic travel trends. The company serves more than 50 million passengers per year, in collaboration with its regional partners. Bringing in $19 billion in revenue pre-pandemic, the company is looking to blow away those figures, seeing strong growth coming out of the pandemic.
Unfortunately for investors, Air Canada’s stock price hasn’t matched its recent outperformance. In fact, Air Canada stock is down big from its pre-pandemic highs of more than $50 per share.
The thing is, for those taking a long-term view of this sector, Air Canada hasn’t been this cheap in some time. And while I view this stock as a potential value trap, it’s also one that’s rewarded long-term investors for buying during times of trouble. Investors can pick up shares near pandemic lows right now and simply hold for the long term. I think that’s a strategy worth considering right now.
Kinross Gold
A senior Canadian gold producer, Kinross Gold (TSX:K) produced approximately 2.4 million gold equivalent ounces in 2020. The company is focusing on greenfield and brownfield exploration and operates mines in the Americas, Russia, and West Africa.
Due to economic uncertainty, the gold price tends to increase, creating a hedge against inflation. Hence, it is crucial to invest in such companies, like Kinross Gold Corporation, to deal with the rising inflation and shift in market trends. Moreover, the company has performed significantly well in the first quarter of 2024, raising its share price on the Toronto Stock Exchange. Kinross also increased its margin by 20% per ounce of gold to deal with the increase in gold’s value. Over the long term, I expect this miner to be a key beneficiary of rising gold prices, tied to rising inflation.
