My 2 Top-Performing TSX Stocks in 2020

Which two TSX-listed stocks in my portfolio have gained the most value this year?

| More on:

As of this writing, many of my positions are up significantly this year. I can attribute this growth to the fact that I mainly invest in the fast-moving technology sector. However, it should be said that this sector can be very volatile, so investors should keep that in mind. That being said, which companies listed on the TSX have been the best performers in my portfolio so far this year?

Canada’s top growth stock

This was a stock that I had been watching for months and kept waiting for a dip to open my position. Unfortunately, Shopify (TSX:SHOP)(NYSE:SHOP) just kept rising. And then the COVID-19 market crash happened. This gave me the opening that I had been waiting for. At this time, I started pouring into the stock, and now, just a few months later, my position is up 155%.

Shopify is, without a doubt, my favourite Canadian stock right now. The company is led by founder-CEO Tobi Lütke. He was the one that wrote the very first line of code in what would later become Shopify’s platform. Whenever he talks about the journey that the company has been on, and what can be accomplished in the future, you can tell how much passion he has in leading this company.

Furthermore, the e-commerce industry is very much still in its infancy. In 2019, it was estimated that e-commerce made up 16% of all retail sales in the United States. Because of the COVID-19 pandemic, consumers have seemingly accelerated the adoption of online shopping. As this industry increases penetration and Shopify continues to innovate, you can count on many more years of gains from this company.

A hot new IPO

I got really lucky when starting my position in Dye & Durham (TSX:DND). I am normally very hesitant to buy into companies soon after they IPO, because many often drop in value in the weeks that follow. This time, I gave it just over a week and caught the bottom right before Dye & Durham started rising. As of this writing, my position is up 67% — not bad for a company that went public just over a month ago.

Dye & Durham provides a cloud-based platform which is designed to improve the efficiency and productivity of legal and business professionals. Clients that use this platform are able to automate due diligence, document creation, and electronic filing processes.

Just like the e-commerce industry, the global legal industry is growing at a rapid pace. In 2018, Dye & Durham assessed a 37% growth from the previous year in its total addressable market. Because the company is a leader in this industry, it has an excellent opportunity to grab market share during the market’s period of growth.

Foolish takeaway

Shopify and Dye & Durham have done very well for me so far this year. It is very possible that the stocks see many red days moving forward. However, I am very hopeful on their respective futures. Both companies should be leaders in their respective industries and have a very good chance of returning multiples upon my initial investment.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Jed Lloren owns shares of Dye & Durham Ltd and Shopify. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify.

More on Tech Stocks

Man data analyze
Tech Stocks

3 Reasons Celestica Stock Is a Screaming Buy Now

These three reasons make Celestica stock a screaming buy for long-term investors.

Read more »

profit rises over time
Dividend Stocks

These 2 Dow Stocks Are Set to Soar in 2025 and Beyond

Two Dow Jones stocks are screaming buys but Canadians must hold them in an RRSP or RRIF to avoid paying…

Read more »

telehealth stocks
Tech Stocks

Well Health Stock: Buy, Sell, or Hold?

Another record-breaking quarter and strong demand sets the stage for continued momentum for Well Health stock.

Read more »

3 colorful arrows racing straight up on a black background.
Dividend Stocks

TSX Stocks Soaring Higher With No Signs of Slowing

Three TSX stocks continue to beat the market and could soar higher in an improving investment landscape.

Read more »

profit rises over time
Tech Stocks

2 Non-AI Tech Stocks to Buy in November for Better Returns

Not all AI stocks are riding the hype train, and for many investors, well-understood and predictable growth stocks might be…

Read more »

worry concern
Tech Stocks

In a Few Years, You’ll Probably Regret Not Owning BlackBerry Stock

Here’s why I believe BlackBerry could be one of the most overlooked Canadian tech stocks right now.

Read more »

A worker uses a double monitor computer screen in an office.
Tech Stocks

Is Constellation Software Stock a Buy for its 0.25% Dividend Yield?

Here's what investors may want to consider when it comes to Dollarama (TSX:DOL) and its relatively low dividend yield.

Read more »

Nurse talks with a teenager about medication
Tech Stocks

Shares of WELL Health Just Zoomed. Is It a Buy?

Given its improving financials and healthy growth prospects, WELL Health could deliver superior returns over the next three years.

Read more »