Transform $5,000 Into $25,000 in Under 5 Years!

You can turn even just $5,000 into $30,000 by investing properly in strong stocks currently outpacing the market.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Canadians don’t have all that much to work with these days when it comes to their finances. We need to save every penny we have for a rainy day. Unfortunately, it looks like those dark clouds continue to hover over the markets and aren’t going away any time soon.

While I understand wanting to keep some cash available, if you have even $5,000 to spare, you can make it do great things. The benefit is using your Tax-Free Savings Account (TFSA). By using this account, you’ll be able to put money aside safely, take it out whenever you need it, and none of it is subjected to taxes or fees. You can then invest it in Canadian companies set to make a killing.

What to look for

Now, if you’re going to invest in a strong company, there are a few things to look at — especially during a volatile market such as where we are now. First, you’ll want to see how the company has performed in the past. Sure, the stock may have dropped during the last recession, but that’s expected. But did it rebound? How long did it take? And how is it performing during today’s market?

So, take a look at the company’s compound annual growth rate (CAGR) for the last decade. You’ll want to see some positive numbers that can continue in the future. This is the second part you want to look at: the year-over-year revenue. If the company has continued to create strong revenue streams, then that should be a stock that demands your attention.

There are a few stocks that have continued with positive growth in these areas, even during the downturn. Many even outpace the markets. What you want to look for are companies in industries that are a proven necessity. Even better, necessities that are on the emerging end of the spectrum.

Ticking all the boxes

The ideal stock I would recommend right now has to be Kinaxis (TSX:KXS). The company is definitely on the emerging side of necessities. It provides software as a service (SaaS) supply chain management for large enterprise companies around the world. It has an enormous, diverse portfolio, not allowing any one company to take up too much of its revenue. This means its recurring revenue comes from a variety of sources to keep the company strong and growing.

As for those numbers I mentioned? Kinaxis has a CAGR of 37.4% in the last five years, with a five-year return of 397% as of writing. Kinaxis has also had strong year-over-year revenue growth, with the latest quarter at 33.5%, but the last consecutive quarters hovering around 30%.

Bottom line

If Kinaxis continues on its trajectory, which is likely given the necessity of its business, it would be easy to turn $5,000 into $30,000. Today, you could buy shares at about $203 per share — definitely on the high end but likely to continue upwards for long-term investors. After purchasing 25 shares, you could turn that into $24,852.48 in just five years if shares continue at the current pace.

Should you invest $1,000 in Kinaxis right now?

Before you buy stock in Kinaxis, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Kinaxis wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,058.57!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 38 percentage points since 2013*.

See the Top Stocks * Returns as of 2/20/25

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends KINAXIS INC.

If You Thought Apple and Microsoft Were Big, You Need to Read This.

The steel industry produced the world's first $1 billion company in 1901, and it wasn't until 117 years later that technology giant Apple became the first-ever company to reach a $1 trillion valuation.

But what if I told you artificial intelligence (AI) is about to accelerate the pace of value creation? AI has the potential to produce several trillion-dollar companies in the future, and The Motley Fool is watching one very closely right now.

Don't fumble this potential wealth-building opportunity by navigating it alone. The Motley Fool has a proven track record of picking revolutionary growth stocks early, from Netflix to Amazon, so become a premium member today.

See the 'AI Supercycle' Stock

More on Tech Stocks

A plant grows from coins.
Tech Stocks

The Ultimate Growth Stocks to Buy With $5,000 Right Now

Are you wondering what kind of growth stocks to hold for the years ahead? These three stocks would be good…

Read more »

a-developer-typing-lines-of-ai-code-while-viewing-multiple-computer-monitors
Tech Stocks

2 Canadian AI Stocks Poised for Significant Gains

These top Canadian AI stocks could see solid gains in the years to come as they continue to integrate AI…

Read more »

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

Outlook for Shopify Stock in 2025 

Explore the latest updates on Shopify. Discover its journey from pandemic success to recent challenges and strategic changes.

Read more »

space ship model takes off
Tech Stocks

A Few Years From Now, You’ll Probably Wish You’d Bought This Undervalued Stock

CAE stock is one investment Canadians will wish they had latched onto before it climbed sky high.

Read more »

An analyst uses a computer and dashboard for data business analysis and Data Management System with KPI and metrics connected to the database for technology finance, operations, sales, marketing, and artificial intelligence.
Tech Stocks

Outlook for Constellation Software Stock in 2025

CSU stock continues to look like a prime option for investors, but only if it's affordable.

Read more »

Illustration of data, cloud computing and microchips
Tech Stocks

CGI: Buy, Sell, or Hold in 2025?

CGI stock is a strong option, and certainly was in the last year. But what about for 2025?

Read more »

top TSX stocks to buy
Tech Stocks

Forget CTS! Here’s 1 Cheaper Canadian Stock With More Growth Potential

CMG is a cheap Canadian stock that trades at a discount to consensus price targets in 2025.

Read more »

Woman in private jet airplane
Tech Stocks

A Best Tech Stock for Canadian Investors in the New Year

Constellation Software (TSX:CSU) stock could be the best long-term tech titan to buy and hold.

Read more »