Stocks are one of the top investments for building lasting wealth. By investing in fundamentally strong companies that can grow profitably at a large scale, investors can generate significant returns over time. Thus, when investing for tomorrow, investors should consider top TSX stocks with multiple growth catalysts and the ability to deliver above-average returns.
With this backdrop, investors should consider three TSX stocks to build significant wealth over the long run.
Source: Getty Images
goeasy
goeasy (TSX:GSY) is a solid long-term stock to create lasting wealth. The company offers value, income, and growth. Notably, shares of this subprime lender have risen about 897.5% over the past decade, reflecting a CAGR of 25.8%, and have outperformed the broader markets.
The stellar growth in its stock is driven by its robust financials and commitment to returning value to investors through higher dividend payments. Notably, goeasy’s earnings per share (EPS) have grown at a five-year CAGR of 28.7%, while its revenue rose by 20.1% over the five years. Besides solid financials, goeasy has steadily increased its dividend over the past 10 consecutive years.
goeasy looks well-positioned to deliver solid growth in the coming years. It will likely benefit from its leadership in Canada’s subprime lending space and growing loan demand. The company forecasts its consumer loan portfolio to exceed $6 billion by the end of 2026, which will drive its top line at a healthy pace.
Further, its diversified funding sources, solid credit underwriting practices, and efforts to expand its product offerings and geographic reach will accelerate its growth. Moreover, goeasy’s strong balance sheet and improved operating leverage position it well to capitalize on growth opportunities. While goeasy is likely to deliver double-digit earnings growth, its stock has a forward price-to-earnings ratio of just nine, which makes it attractive on the valuation front.
Bombardier
Bombardier (TSX:BBD.B) is another top TSX stock that could help create significant wealth over time. Shares of the business jet manufacturer have risen over 106% over the past year. However, it still has ample upside potential, as the company is poised to capitalize on the growing demand for its products and services. Further, the Canadian aviation company will likely benefit from its extensive aftermarket and support facilities network.
Bombardier’s top line will be driven by increased aircraft deliveries led by its new lineup of medium and large business jets. Moreover, its focus on innovation and diversification across defence, services, and the pre-owned aircraft market will likely add new revenue streams, thus improving profitability over time.
Furthermore, Bombardier emphasizes strengthening its balance sheet by improving liquidity and lowering its debt load. This optimization will likely provide financial flexibility, positioning it well to invest in new opportunities and accelerate growth.
TerraVest Industries
TerraVest Industries (TSX:TVK) is another attractive stock worth buying now for tomorrow. This leading industrial manufacturer has consistently delivered solid financials, leading to a rally in its stock price. TerraVest’s top line has risen about 35% in the first nine months of 2024, benefiting from acquisitions and higher demand in the service segment.
Thanks to its stellar sales growth, TerraVest stock has jumped about 164% this year and gained an enormous 927% in the past five years.
Despite the rally, it has more room for growth, given the solid demand for its services. TerraVest’s focus on international markets, expansion of its product offerings, and improved manufacturing efficiency will likely support its top and bottom lines. Moreover, its focus on acquisitions will further accelerate TerraVest’s growth, boosting its share price.
TerraVest also has a solid balance sheet with ample liquidity, which could allow it to continue capitalizing on growth opportunities and enhancing shareholder value through dividend payments.
