3 Top TSX Stocks That Could Turn $10,000 Into $100,000

These TSX stocks have the potential to deliver multi-fold returns and compound your wealth.

| More on:

There have been many occasions where a stock has delivered multi-fold returns in a short period. Take Shopify or Ballard Power Systems stock, for example. An investment of $10,000 in Shopify stock five years back would now be worth $313,918. Likewise, a similar investment in the shares of Ballard Power Systems would now be worth $106,884.

Cargojet stock has been another multi-bagger listed on the TSX. An investment of $10,000 in Cargojet would have grown to $86,690 in five years.   

In case you have missed investing in these top TSX performers at an early stage, worry not. A few TSX stocks have the potential to match similar kinds of returns and could turn $10,000 into $100,000 in about five years. Let’s focus on three such high-growth stocks the rally in which has just begun. 

A subprime lender 

There are multiple reasons why investors should lap up the shares of goeasy (TSX:GSY). The subprime lender has consistently delivered revenues and earnings growth over the past 18 years. goeasy’s top-line has grown at a CAGR (compound annual growth rate) of 13.1% in the past 18 years. Meanwhile, its adjusted net income has grown at a CAGR of over 30% during the same period.

Despite facing significant headwinds in 2020, goeasy delivered earnings growth of about 43.3% in the first nine months, which is encouraging and indicates the strength of its base business. Meanwhile, with the reopening of the economy, goeasy has started to see an increase in consumer demand, with loan originations showing improvement.  

I have a bullish view on goeasy stock due to its large addressable market, evolving business model, and geographical expansion. Moreover, goeasy has uninterruptedly paid dividends for 16 years and consistently increased it in the last six years.

Omnichannel commerce-enabling platform provider

Omnichannel commerce-enabling platform provider Lightspeed POS (TSX:LSPD)(NYSE:LSPD) is another top bet that could compound your wealth over time. Lightspeed is witnessing increased demand for its digital products as small and medium-sized businesses, including retailers and restaurants, are transitioning toward omnichannel payment solutions from legacy platforms. 

The rapid digital shift has created a multi-year growth opportunity for Lightspeed and is likely to drive its top-line in the coming years. Also, its acquisition of ShopKeep should bolster its growth further. While the secular industry tailwinds should help drive Lightspeed’s customer base, geographical and product expansion are likely to maximize its revenue per customer and support margins. 

While Lightspeed has skyrocketed in the recent past, it has enough ammo left that could continue to support the rally in its stock over the next several years. 

A legal technology company 

Dye & Durham (TSX:DND) has all the right mix that could help it deliver robust returns in the coming years. The tech-based company provides public records to the legal and business professionals and has delivered exceptional sales and adjusted EBITDA over the past several years. 

Its revenues and EBITDA have grown at a breakneck pace, thanks to its large blue-chip client base and low churn rate. Also, its accretive acquisitions have boosted its growth further. 

With the ease in lockdown measures and opening of the courthouses, Dye & Durham’s products are likely to witness increased demand, which should drive strong double-digit growth in its revenues and EBITDA. The company projects about 64% growth in its top-line for the second quarter of fiscal 2021, which should support its adjusted EBITDA. 

The company’s strong customer base, accretive acquisitions, long-term contracts, and high net revenue retention rate suggest that Dye & Durham could deliver multi-fold returns over the next decade. 

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 Sneha Nahata has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends CARGOJET INC., Shopify, and Shopify. The Motley Fool owns shares of Lightspeed POS Inc.

More on Tech Stocks

A data center engineer works on a laptop at a server farm.
Tech Stocks

3 No-Brainer Data Centre Stocks to Buy With $500 Right Now

Data centres are going to be a huge growth opportunity in the next decade. And these are the top buys.

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Is OpenText Stock a Buy, Sell, or Hold for 2025?

OpenText stock has fallen in the last few years, but that could mean this top tech stock remains an undervalued…

Read more »

AI microchip
Tech Stocks

Celestica Stock: Buy, Sell, or Hold?

Celestica's stock price has rallied 950% in the last five years. Will the AI boom send it even higher in…

Read more »

data analyze research
Tech Stocks

2 Ridiculously Cheap Growth Stocks to Buy Hand Over Fist in 2024

Well Health Technologies is a cheap growth stock to buy for its record-breaking results, massive revenue growth, and profitability.

Read more »

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

4 Reasons to Buy Kinaxis Stock Like There’s No Tomorrow

Kinaxis stock has a strong past. But there is even more to look forward to from this top tech stock.

Read more »

The letters AI glowing on a circuit board processor.
Tech Stocks

The Future of AI: Best Canadian Stocks to Buy Now

Here are two of the best AI-focused stocks in Canada that you can consider adding to your portfolio before it’s…

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Tech Stocks

2 TFSA Stocks to Buy Right Now With $7,000

Are you looking for growth stocks that can help you maximize the tax-free withdrawals of the TFSA? This article is…

Read more »

cloud computing
Tech Stocks

3 No-Brainer Tech Stocks to Buy Right Now for Less Than $1,000

Not all tech stocks are the risky investments that many think they are. Which is why we're focusing on the…

Read more »