Starting to invest in the stock market can seem quite exciting. For someone new to it, the idea of investing a bit of money into a company that suddenly soars and makes them wealthy beyond measure can be tempting. While becoming rich overnight might be a bit far-fetched, investing in growth stocks can yield amazing results.
If you identify and invest in the right stock, you can end up getting multi-fold returns down the line. For that, you would have to buy the kind of stock that can grow in value significantly over the course of a few years. It might seem like a fantasy, but it is not impossible. There are several high-quality TSX stocks out there offering seemingly great value.
Today, we will take a look at two such stocks that you can consider adding to your self-directed investment portfolio.
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Celestica
Celestica (TSX: CLS) is a Toronto-based $37.51 billion market-cap firm that offers supply chain solutions, and it is taking advantage of the rise in demand for artificial intelligence (AI) technology. While the company in and of itself is not an AI-related business, it is manufacturing the parts that the growing industry requires for support. A company that fosters the growth of AI integration can arguably be considered as important as those that are innovating AI-powered solutions.
Celestica stock has been on a tear this year. As of this writing, CLS stock trades for $326.12 per share, up by a staggering 360% from its 52-week low. At current levels, with this uptick, it can seem reasonable to be worried about picking current levels as an entry point. However, we can see that AI adoption will only grow in the coming year. Celestica is one of the biggest beneficiaries of that. The company’s cash flow is solid, and share buybacks are going on to support the thesis that there might be more growth in the coming months and years.
Lightspeed Commerce
Lightspeed Commerce (TSX: LSPD) might not be a name many investors will consider favourably after the tech sector meltdown a few years ago, wiping out plenty of investor returns. Lightspeed is a point-of-sale (POS) and e-commerce software provider headquartered in Montreal. The company has come a long way from being a POS software provider over the years. It now offers an omni-channel commerce-enabling Software-as-a-Service (SaaS) platform.
The effects of the short sale report that led to such a drastic decline in share prices seem to be subsiding. Its recent pivot into an SaaS and payments model is paying off. The most recent quarterly report saw a 15% growth in revenue for Lightspeed Commerce. The company’s management is set to complete share buybacks of 12% of shares in the full-year 2025. If the company keeps up with this, there might be double-digit growth not too far ahead on the horizon.
Foolish takeaway
It is important to remember that stock market investing is inherently risky. Even the safest and most boring TSX stocks can go through downturns and are not immune to broader economic factors. Considering that, growth stocks tend to carry a higher degree of risk than others.
If you were to invest in growth stocks, I would advise preparing a well-balanced portfolio that is capable of offsetting the downturn in riskier investments. Provided you have a well-balanced portfolio, LSPD stock could be a good bet in terms of a growth turnaround. Celestica can be a good investment if you are looking at how it has already rewarded investors over the years and its position, which makes it seem capable of delivering even more growth in the coming years.
I would not bet everything on saying these are stocks that can deliver 10-fold returns. However, I would say that these two TSX tech stocks seem more likely to deliver that than many others.
