Building the kind of wealth that can last generations can happen as a stock market investor. While many might think of it as a pipe dream, it is very much possible to get 10x growth for your money. The key to achieving such a milestone is making sure you do your due diligence and invest in the right stock.
There are plenty of TSX stocks that can offer you the opportunity to deliver returns like this. Celestica (TSX:CLS) and Hammond Power Solutions (TSX:HPS.A) are two perfect examples of TSX stocks that have already done it. The two high-growth stocks are some of the top-ranking publicly traded companies on the TSX, and here’s why.
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Hammond Power Solutions
Hammond Power Solutions is not one of the most well-known names, but it is an important company. The $1.45 billion market-cap company engages in designing and manufacturing custom electrical magnetics, cast resin, custom liquid-filled distribution and power transformers, and standard electrical transformers. The company provides its products to the electronics and electrical industries, serving clients across several international markets.
The company is the largest manufacturer of dry-type transformers in North America. Its customer base includes several industrial clients, operating everything from data centres to waste and water treatment facilities. As of this writing, HPS.A stock trades for $121.97 per share, up by 1,956.83% from five years ago. With a massive addressable market worth over $65 billion worldwide, there is plenty more room to grow. It can be a good investment at current levels.
Celestica
Celestica is the better-known of the two TSX stocks. Celestica is a $38.45 billion market-cap tech stock. The company essentially offers supply chain solutions to its clients worldwide. The company is responsible for providing hardware for the artificial intelligence (AI) industry, and it supplies Electronics Manufacturing Services.
Its Advanced Technology Solutions segment services several industries, including Capital Equipment, Aerospace and Defence, and Health Tech, among others. As of this writing, Celestica stock trades for $334.23 per share, up by 148.96% in the last five years. The growth in AI adoption and the rising demand for computing capacity mean there is a potential for plenty more growth for Celestica stock in the coming years. Even if it might look expensive valuation-wise, the stock seems like a bargain for investors with a long-term strategy.
Foolish takeaway
There are several ways to get tenfold returns by investing in the stock market. With dividend stocks, you can reinvest the distributions to purchase more shares of a stock and unlock the power of compounding. As amazing as that strategy is, some high-growth TSX stocks deliver faster gains over shorter periods of time.
It is important to remember that investing in growth stocks is a riskier strategy. There is a higher chance of losses when things don’t go your way. If you have a well-balanced portfolio to mitigate risks, it might be useful to dip your toes into growth stocks like Hammond Power Solutions stock and Celestica stock.
