3 Hyper-Growth Stocks to Add to Your Portfolio

Looking for a stock that could give you massive returns? Take a look at these three hyper-growth stocks.

| More on:

When looking for stocks that could give you huge returns, it’s important that investors focus on companies with sustainable growth. In the event that the company in question doesn’t provide growth (from revenue or other business measure), it’s very likely that the stock could face a steep correction. In this article, I will provide three hyper-growth stocks you should consider adding to your portfolio.

Canada’s top growth stock

No article about hyper-growth stocks would be complete without Shopify (TSX:SHOP)(NYSE:SHOP). The company has shown remarkable growth in both its userbase and revenue since its IPO. As a result, investors have been heavily rewarded over the past six years. Today, Shopify offers one of the most popular e-commerce website building services in the world. The company has many notable enterprise customers, including Netflix and Heinz.

In its latest earnings report, Shopify announced that its recorded revenue over Q1 2021 had increased 110% over the same quarter in 2020. This shows sustained growth after Shopify reported an 86% increase in revenue in 2020 compared to 2019. With the recent addition of Netflix to its list of enterprise users, investors could expect continued growth in the coming years. Although this is a stock that has gained more than 5,100% since 2015, it may not be done growing just yet.

This recent IPO has been thriving

As the e-commerce industry continues to grow, so will the digital payments space. A company like Nuvei (TSX:NVEI) is a great example of that. It offers an omni-channel payments solution. Businesses that choose Nuvei’s platform are able to transact online, mobile, in-store, and unattended payments. Today, the company is present in more than 200 global markets, accepting 450 payment methods in about 150 currencies.

In its Q4 2020 earnings report, Nuvei announced that its total revenue had increased from $79.3 million to $115.9 million. This represents a 46% increase year over year. In addition, Nuvei’s adjusted EBITDA saw a 61% increase year over year. Clearly, the company is firing on all cylinders. Looking at Nuvei’s full-year results, we can see that its total revenue increased 53% year over year. Upon looking at these results, it’s easy to understand why Nuvei stock has gained more than 91% since its IPO last September.

A top growth stock flying under the radar

Another stock that growth investors should take note of is Dye & Durham (TSX:DND). This company provides cloud-based software to legal firms, government agencies, and financial institutions. Using its platform, these businesses can automate certain tasks like due-diligence searches, document preparation, real estate conveyancing, and more. Over the past year, Dye & Durham has been aggressively acquiring complementary businesses in hopes of rapidly increasing its market share.

Dye & Durham first went public in July 2020. Since then, its stock has seen a meteoric rise, climbing more than 230%. Despite this massive gain, Dye & Durham still has a market cap of only $3.4 billion. Looking past its stock performance, investors can see that the company’s financials are astonishing. Last month, Dye & Durham reported that its Q3 revenue had grown 300% compared to the same period last year. In addition, adjusted EBITDA increased 267% year over year. Not only does this stock have ridiculous growth, but so does the company’s financials.

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 Shopify. The Motley Fool owns shares of and recommends Netflix and Shopify. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.

More on Tech Stocks

stocks climbing green bull market
Tech Stocks

Why Propel Stock Keeps Going Up

Propel stock has seen a fivefold increase in its market cap in the last year! But even more is set…

Read more »

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

Could Constellation Software Become the Next Berkshire Hathaway?

Constellation Software's (TSX:CSU) capital-allocation strategy is similar to that of Berkshire Hathaway (NYSE:BRK.B).

Read more »

cloud computing
Tech Stocks

3 No-Brainer Tech Stocks to Buy With $1,000 Right Now

These three Canadian tech stocks could be among the best growth opportunities in the market right now.

Read more »

happy woman throws cash
Tech Stocks

3 Growth Stocks That Could Be Long-Term Wealth Creators

These three growth stocks aim to grow their financials at a higher rate than the industry average, thus delivering superior…

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 POET Technologies a Top AI Stock for Canadian Investors?

Canada has relatively few AI stocks, and the ones it has are different from American AI stocks in terms of…

Read more »

Rocket lift off through the clouds
Tech Stocks

2 Growth Stocks That Could Skyrocket in 2025 and Beyond

Wondering what types of stocks could rapidly rise in 2025? Check out these two stocks with substantial upside if they…

Read more »

up arrow on wooden blocks
Tech Stocks

The 3 Smartest Tech Stocks to Buy With $500 Right Now

Tech stocks can be seen as a bit risky, but these three have far less risk and more stability for…

Read more »

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

Shopify: A Must-Have Growth Stock for Your TFSA Now (and the Next 10 Years)

Shopify (TSX:SHOP) stock isn't just a top growth company, it's a titan worth owning in your decades-long TFSA fund.

Read more »