While it’s true that high-growth stocks can swing both ways, there’s also no denying their power to create life-changing wealth in the long term. The power that could even turn a $20,000 investment into $200,000 over time. It sounds bold, but it’s not impossible. You just need to pick the right stocks at the right stage of their journey and be patient.
That means not just looking at a stock’s past performance, but digging into its fundamentals to find out what’s driving that momentum. Are its financials moving in the right direction? And even more importantly, do its future growth fundamentals look even better than the past?
In this article, I’ll talk about two such top TSX stocks that tick all these boxes with the potential to 10X your capital.
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Enerflex stock
First up is Enerflex (TSX: EFX), an energy firm that’s not just riding the energy wave but also leading it with record numbers. The company mainly delivers global energy infrastructure and natural gas solutions with operations in North America, Latin America, and the Eastern Hemisphere.
EFX stock currently trades at $17.82 per share with a market cap of about $2.1 billion. Interestingly, the stock has delivered an impressive 98% in the last year, with a 93% jump in the last six months alone.
This surge in its share prices could be a result of strength in Enerflex’s financials. In the second quarter, it delivered record adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of US$130 million, driven by higher gross margins and a strong contribution from its energy infrastructure and after-market services segments.
During the quarter, its revenue was stable at US$615 million, but profitability saw a big leap as the company’s net earnings grew to US$60 million, up significantly from US$5 million a year ago. Lower costs and operational efficiencies were the two key reasons behind this massive growth.
At the end of the second quarter, Enerflex had US$1.2 billion in engineered systems backlog and US$1.5 billion in energy infrastructure contract backlog. With strong fundamentals, disciplined capital allocation, and reliable contract revenue, EFX stock is one of the top TSX stocks to buy for long-term upside.
Ballard Power Systems stock
Another stock with solid long-term potential is Ballard Power Systems (TSX: BLDP), which is betting on hydrogen to power its next growth phase. Based in Burnaby, the company is known for its hydrogen fuel cell technology powering buses, trucks, rail, and marine transport.
Following an eye-popping rally of 182% in the last six months, BLDP stock currently trades at $4.77 per share, giving it a market cap of $1.4 billion. That solid momentum is being mainly driven by its sharp cost-cutting plan and product strategy overhaul to achieve positive cash flow by 2027.
Ballard’s revenue climbed by 11% YoY (year over year) in the second quarter to US$17.8 million, backed by 22% growth in heavy-duty mobility sales. During the quarter, it also managed to slash cash operating costs by 27%, while its total operating expenses dropped by 30% after excluding restructuring charges.
Recently, the company also launched its FCmove-SC fuel cell for transit buses, which is designed to lower lifecycle costs and simplify vehicle integration. With an expected 25,000-hour service life and performance targeting diesel parity, this innovation could unlock real commercial value in the coming years.
If its turnaround continues as planned, Ballard could keep delivering outstanding returns for long-term investors willing to ride out the volatility.
