Stock market investing is one of the best ways to grow your wealth without a significant initial capital. While there is no guaranteed method to turn $15,000 into $150,000, it is a possibility when you take the right approach to investing. Getting 10-fold returns on your investments via equity securities requires having a long-term investment strategy.
Contrary to what some might believe, it is possible to buy up some stocks and leave them alone for several years to find that your investment has grown to 10 times what you initially invested. The TSX boasts several stocks offering substantial value and have the growth potential to make you a richer investor.
Today, I will discuss three TSX growth stocks with such potential.
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Celestica
Celestica (TSX: CLS) is a Canadian tech stock that has benefited from the surge in adoption of artificial intelligence (AI). While it is not exactly a pure-play AI stock, CLS has a business model that can leverage the growing demand. The company manufactures the components that support the AI industry, something that is arguably more important than the big-name AI stocks.
The company’s operating margins have been through the roof, and its management saw it raise guidance for 2025 after its second quarter saw it set new records. As of this writing, Celestica stock trades for $389.08 per share, up by a massive 407% from its 52-week low. With plenty of upside potential still there, it might be the right time to invest in its shares.
goeasy
goeasy (TSX: GSY) is a $2.56 billion market-cap Canadian company offering plenty of relief to Canadians who cannot manage to secure loans from traditional lenders. Typically, lenders do not let people with poor credit scores take loans from them due to the higher risk of default involved. However, companies like goeasy are making it easier for subprime lenders to get unsecured installment loans.
It is a leading player in the subprime lending market, and it has a massive customer base to tap into. The company has scaled its operations rapidly over the years, increasing its revenue and earnings at a fast pace. As of this writing, goeasy stock trades for $159.40 per share and boasts a 3.66% dividend yield that you can lock into your portfolio.
Lightspeed Commerce
Lightspeed Commerce (TSX: LSPD) is a $2.19 billion market-cap tech stock that began as a Point-of-Sale software provider but has since grown into a massive company. It is now an omni-channel and commerce-enabling Software-as-a-Service platform. It offers functionality that its clients need to engage with end-consumers, manage operations, accept payments, and grow their businesses.
After the short-seller report triggered a massive selloff that coincided with the tech sector meltdown a few years ago, the stock has struggled to recover to its all-time highs on the stock market. However, the business itself has been doing well. Its most recent quarter saw LSPD’s revenue grow by 15% year over year. The company also plans to buy back 12% of its shares in 2025. It has all the makings of a stock with double-digit growth in the coming quarters.
Foolish takeaway
Getting 10-fold returns on your investment does not come by timing the market or chasing the hype surrounding the hottest stocks in the market. Rather, it comes from identifying fundamentally strong businesses with the ability to grow revenues and earnings year in and year out.
While no investment is risk-free, those with solid underlying businesses have the best chance to succeed and deliver multi-bagger returns. To this end, Celestica stock, goeasy stock, and Lightspeed Commerce stock can be good investments to consider for your self-directed investment portfolio.
