2 TSX Stocks That Could Grow 10x in 10 Years

Two companies are following in the footsteps of tech giant Shopify due to their flourishing businesses. The Lightspeed POS stock and Mogo stock are the must-buy growth stocks on the TSX today.

| More on:

E-commerce platform Shopify is the face of Canada’s tech sector, if not the TSX on the whole. The business’s success was phenomenal in that it overtook the Royal Bank of Canada as the country’s largest public-listed company in 2020. Investors delight in the 5,893.6% (93.58% compound annual growth rate) total return in the last 6.2 years.

Two names, Lightspeed POS (TSX:LSPD)(NYSE:LSPD) and Mogo (TSX:MOGO)(NASDAQ:MOGO), are following in the footsteps of Shopify. While they’re not likely to grow in the same magnitude, these growth stocks could grow 10 times more in ten years.

Relevant commerce platform

Lightspeed went public in March 2019, and at that time, it was the largest TSX tech IPO since 2010. The company provides a Software-as-a-Service (SaaS) platform for small and midsize businesses, retailers, and restaurants, among others. It raised $179 million on the first day of trading.

Had you invested $5,000 on March 8, 2019, and still owns the tech stock, your capital would be worth $28,261.90 today. Small and medium-sized businesses from Canada, Australia, Germany, the U.S., and internationally use Lightspeed’s platform for various functions besides point-of-sale (POS) transactions and inventory management.

Lightspeed’s full-year 2021 results indicate robust business growth since its market debut. Total revenue (fiscal year ended March 31, 2021) increased 84% versus the full year 2020, while recurring subscription and transaction-based revenue grew 89%. Despite the net loss of $124.3 million, management describes the year as one of Lightspeed’s transformational years.

Its founder and CEO Dax Dasilva summarized the business objective. He said, “Our mission to arm entrepreneurs with the technology they need to run and scale their businesses has never felt more relevant.” As of July 30, 2021, Lightspeed’s market cap stands at $14.28 billion, while the stock is up 18.91% year-to-date.

Market analysts see a potential upside in the next 12 months. Based on their forecasts, the current share price of $106.83 could soar between $113.21 (+6.07%) and $39.28 (+39.28). The tech stock’s total return in the last 2.4 years is 465.24%.

Building a comprehensive digital wallet

Mogo, a $503.4 million digital payments and financial technology company from Vancouver, shows many promises in the years ahead. The fintech stock’s appeal is strongest, with the younger generation seeking to improve their financial insight and wellness. At $7.16 per share, Mogo outperforms the TSX year to date (+47.93% versus +15%).

Market analysts recommend a strong buy rating. They predict a return potential of 100.19% in the next 12 months. The highlight of Mogo’s most recent quarterly results was the accelerating subscription and services revenue. In Q1 2021 (quarter ended March 31, 2021), the sequential growth was 32%. It was also the third consecutive quarter of accelerating net member additions, more than 35% versus Q4 2020.

Its Founder and CEO David Feller said Mogo is building the most comprehensive digital wallet to address the needs of Canadian consumers. The product offerings are extensive because it covers personal & mortgage loans, digital spending, credit scoring monitoring, and fraud protection. You can also buy and sell Bitcoin through MogoCrypto.

Outstanding growth stocks

Lightspeed POS and Mogo are outstanding growth stocks. Both companies are well-positioned for exponential growth in the near term. The flourishing businesses confirm the broad adoption of digital and financial solutions by consumers at large. Shopify leads the pack but more tech stocks should grow along with it.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Lightspeed POS Inc 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

think thought consider
Tech Stocks

Is CGI Stock a Buy Even With No Dividend Yield?

CGI stock may not have a dividend to speak of. But does that necessarily mean you should ignore this top…

Read more »

A robotic hand interacting with a visual AI touchscreen display.
Tech Stocks

Why Now Is the Time to Invest in Canadian AI Stocks

Are you looking for one of the most solid Canadian AI stocks out there? This one is probably your best…

Read more »

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

Why AI Stocks Should Be in Every Canadian Investor’s Portfolio

AI stocks continue to be one of the best options out there for long-term investing, especially when considering Canadian options.

Read more »

money goes up and down in balance
Tech Stocks

1 “Magnificent 7” Stock I’d Buy Over Nvidia Right Now

Here's why Meta Platforms stock is a better choice for Canadian investors compared to Nvidia in November 2024.

Read more »

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 »