3 High-Growth TSX Stocks to Buy in December

Shares of these high-growth companies are likely to benefit from favourable industry trends and strong demand.

November saw strong buying in the shares of the companies hit hard by the pandemic. Shares of Air Canada and Suncor Energy rebounded strongly and rose over 50% on positive vaccine data. Meanwhile, Enbridge and Pembina Pipeline also recorded double-digit growth in their stock this month. While November was strong, December brings another high-growth opportunity for investors. 

Here are three TSX stocks that are likely to outperform the broader markets in December and deliver stellar returns. 

Shopify

Shopify (TSX:SHOP)(NYSE:SHOP) is likely to be a key beneficiary of increased holiday spending in December. The structural shift towards an e-commerce platform amid the rising COVID-19 infections is expected to drive robust traffic growth and support its gross merchandise volume (GMV) and revenues.

Thanks to the increased traffic, Shopify delivered a 119% jump in its GMV in Q2. Meanwhile, new stores on its platform jumped 71% sequentially. I believe Shopify could deliver an equal amount of growth or even better in the Q3 on the back of increased demand during the holiday season. 

The rapid adoption of the digital platform creates a multi-year growth opportunity for Shopify and is likely to support the rally in its stock. Besides, its partnerships with FacebookPinterest, and Walmart should further drive the number of merchants onto its platform and help to up-sell its high-value offerings like Shipping and Capital, which is likely to cushion its margins. 

Lightspeed POS  

Like Shopify, Lightspeed POS (TSX:LSPD)(NYSE:LSPD) is expected to see an acceleration in demand for its products and offerings, thanks to the strong secular trends. Increased e-commerce activities are likely to drive more and more small and medium-sized retailers and restaurant operators to Lightspeed omnichannel payment platform. 

Meanwhile, the company remains well positioned to capitalize on the rising demand and drive its average revenues per user through better monetization of its existing clients and up-selling its high-value products like accounting and loyalty. 

Lightspeed’s customer base is expected to show a significant jump amid strong demand. Meanwhile, its recent acquisitions are likely to accelerate its growth further. While Lightspeed’s near-term prospects look strong, a large addressable market, expansion in the U.S., and structural shift in selling models provide a solid foundation for long-term growth.

Cargojet

Cargojet (TSX:CJT) has performed exceptionally well so far this year, surging over 110% on a year-to-date basis and could rise even further on increased demand in December. The air cargo company’s revenues and volumes are expected to show stellar growth in Q4, reflecting a surge in demand during the holiday season on account of higher retail activity. 

Meanwhile, Cargojet’s next-day delivery capabilities to most of the Canadians and strong competitive positioning should enable it to benefit from the surge in e-commerce activity. 

Cargojet’s base business remains strong with a high client retention rate, network and cost optimization, and long-term contractual arrangements. Meanwhile, consistent demand for its services helps it to deliver healthy growth. 

Bottom line  

Shares of these high-growth companies are likely to benefit from favourable industry trends and strong demand. Besides, all these TSX-listed companies have strong businesses that could help deliver outsized growth in the long run. 

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.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Fool contributor Sneha Nahata has no position in any of the stocks mentioned. David Gardner owns shares of Facebook. Tom Gardner owns shares of Facebook and Shopify. The Motley Fool owns shares of and recommends CARGOJET INC., Enbridge, Facebook, Pinterest, Shopify, and Shopify. The Motley Fool owns shares of Lightspeed POS Inc. The Motley Fool recommends PEMBINA PIPELINE CORPORATION.

More on Tech Stocks

A person uses and AI chat bot
Tech Stocks

AI Where No One’s Looking: Seize Growth in These Canadian Stocks Before the Market Catches Up

Beyond flashy headlines about generative AI, these two Canadian AI stocks could deliver strong returns for investors who are willing…

Read more »

Data center servers IT workers
Tech Stocks

Better Buy: Shopify Stock or Constellation Software?

Let's dive into whether Shopify (TSX:SHOP) or Constellation Software (TSX:CSU) are the better options for growth investors in this current…

Read more »

nvidia headquarters with nvidia sign in front
Tech Stocks

Nvidia Just Delivered a Beat-and-Raise Quarter. There’s 1 Red Flag Investors Shouldn’t Ignore.

The chipmaker continued to benefit from robust demand for artificial intelligence (AI). But can it last?

Read more »

GettyImages-1473086836
Tech Stocks

Why Super Micro Computer Stock Is Soaring Today

The volatile stock is getting a boost from Nvidia.

Read more »

Snowflake logo in snowflake office on wall_snowflake-1
Tech Stocks

Here’s Why Snowflake Stock Skyrocketed Today

Shares of the data company are up 32% for the day.

Read more »

man touching magnifying glass button on floating search bar internet google search engine
Tech Stocks

Why Alphabet Stock Was Sliding Today

The parent company of Google is facing heat from U.S. regulators.

Read more »

chart reflected in eyeglass lenses
Tech Stocks

Top Canadian AI Stocks to Watch in 2025

Celestica (TSX:CLS) stock and another Canadian AI stock are worth watching closely this holiday season.

Read more »

Nvidia Voyager Headquarters
Tech Stocks

Why Nvidia Stock Rallied (Again) on Tuesday

The chipmaker is expected to report earnings this evening.

Read more »