Looking to invest $1,000 in stocks that have the potential for solid returns? Lightspeed Commerce (TSX:LSPD) and Brookfield (TSX:BN) are two no-brainers for different yet complementary reasons. With strong recent earnings, robust growth strategies, and impressive market positioning, these two companies offer both stability and the potential for future gains.
Lightspeed stock
First, Lightspeed stock recently reported a significant earnings beat for its latest quarter. The tech stock reported an earnings per share (EPS) of $0.13 versus an expected $0.10. This was the fourth consecutive quarter surpassing expectations, with revenue rising 20% year over year to $277.2 million. With strong subscription and transaction-based revenue growth, Lightspeed is steadily improving its financial health and moving toward profitability.
Second, as a tech company offering point-of-sale solutions, Lightspeed stock benefits from a loyal customer base in the retail and hospitality sectors, especially in North America and Europe. With over $1 billion in revenue on a trailing 12-month basis, Lightspeed is rapidly building its credibility. Its focus on innovation and product expansion should help it continue this upward trajectory, especially as it targets high-volume SMBs (small- and medium-sized businesses).
As well, Lightspeed stock has been on a bit of a rollercoaster, reflecting the broader market’s volatility in the tech sector. However, it has an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast for Fiscal 2025 raised to at least $50 million, showing a steady path toward a sustainable, positive cash flow. While Lightspeed shares have underperformed the broader market this year, its current undervaluation offers a buying opportunity for investors who believe in its long-term growth potential.
Brookfield
Moving to Brookfield stock, this investment giant is a completely different but equally compelling choice. Brookfield has a massive portfolio in renewable power, infrastructure, real estate, and alternative investments, positioning it as a solid choice for a diversified portfolio. Brookfield’s strong market cap of nearly $120 billion and a conservative balance sheet make it a steady investment.
Unlike Lightspeed stock, Brookfield is no stranger to consistent performance. For over three decades, it has delivered annualized returns of more than 15% to its shareholders. This is thanks to its focus on building long-term wealth, underpinned by stable revenue streams from sectors like renewable energy and real estate. Brookfield’s diversified asset base and cash flow stability provide a nice balance to the tech-focused growth potential of Lightspeed.
Another advantage of Brookfield is its dividend, with a forward yield of around 0.54%. Though modest, this dividend shows Brookfield’s dedication to rewarding its investors alongside a solid share performance. Additionally, Brookfield’s recent insider buying signals confidence in its future outlook, which is always reassuring for investors.
Bottom line
In short, Lightspeed stock offers growth potential, especially for tech enthusiasts, while Brookfield provides stability and reliable cash flow. A mix of the two provides both growth and security. A great combination if you’re putting $1,000 to work. So, if you’re ready to dip into the stock market, consider a blend of Lightspeed and Brookfield.
