Don’t Own These 3 Canadian Stocks? You’re Missing Out!

If you didn’t own stocks like Shopify Inc (TSX:SHOP)(NYSE:SHOP) in 2021 you missed out.

| More on:

Sometimes, it hurts to look at the chart of a stock you never bought. Your own investments can be doing well, but if one you missed rises more than them, you can feel like you’re missing out. At times, it can feel like you’re actually losing money just by not having bought the stock!

Adding to this bitter feeling is the sense that if a stock rose a lot in the past, its best days might be behind it. Sure, there are stocks that rise consistently for decades, but once a stock gets to a trillion-dollar market cap, the odds of continued 1,000% gains are pretty low.

But never fear. While stocks that have risen in the past may fall in the future, there is just as good a chance that they will continue to rise. In many cases, Yesterday’s winners remain tomorrow’s winners. With that in mind, here are three TSX stocks you may feel you have “missed” but, in fact, still have a lot of potential.

Shopify

Shopify (TSX:SHOP)(NYSE:SHOP) has been the best-performing TSX tech stock of the past six years. Up 5,000% since its 2015 IPO, it has made many investors wealthy. If you’d invested $10,000 in SHOP’s IPO and held to today, you’d have a position worth about $510,000. That’s an impressive return — so much so that you might think SHOP’s best days are behind it.

Obviously, a stock can’t keep up 5,000% six-year growth forever. At that rate, and starting from a $200 billion market cap, a company would own the world in a few decades. But that doesn’t mean SHOP can’t still outperform. These days, big tech stocks have market caps up to $2.5 trillion. SHOP is at $227 billion, or US$177 billion, right now. To get to its U.S. tech rivals’ level, SHOP would need to rise another 1,000%. And some think that is quite possible — the company did grow at 46% in its most recent quarter, after all. At that growth rate, it would get to a $1 trillion market cap in under a decade.

TD Bank

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is another Canadian stock that has had a great run. At the very bottom of the 2008 market crash, its stock was worth $15. Today, it goes for about $95. That’s a 530% return in just over a decade.

You might think a stock that has run that hot can’t keep it up forever. But think again. TD Bank is set to benefit from several macroeconomic trends that are just taking shape. We’ve got both the Bank of Canada and the Federal Reserve contemplating rate hikes. Canadians are getting back to work, and the economy is stabilizing following the COVID-19 pandemic. All of this together points to more loans financed at higher interest rates. TD would benefit from that immensely.

Cargojet

Cargojet (TSX:CJT) is another TSX stock like Shopify that has produced absolutely outrageous returns. Since 2012, it has risen a whopping 1,793%. That’s not quite as hot a run as Shopify’s, but it’s impressive in its own right.

Cargojet is another stock like SHOP that profits off of rising e-commerce sales. It ships small overnight deliveries, which, in practice, means a lot of e-commerce deliveries. It was one of the few airlines that saw its revenue grow in 2020 rather than shrink, because COVID-19 retail closures led to a surge in online sales. If lockdowns return to Canada once more, then CJT will be a big beneficiary of the next shift to online buying.

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 Andrew Button owns shares of The Toronto-Dominion Bank. The Motley Fool owns shares of and recommends CARGOJET INC. and Shopify.

More on Investing

oil and gas pipeline
Dividend Stocks

Is TC Energy Stock a Buy for its Dividend Yield?

TC Energy is up 30% this year. Are more gains on the way?

Read more »

Hourglass and stock price chart
Dividend Stocks

1 Greatly Undervalued Dividend Stock That’ll Reward Your Patience

Magna International (TSX:MG) stock is a dividend deep-value play that may be worth buying on the way down.

Read more »

Piggy bank and Canadian coins
Dividend Stocks

CRA Money: 3 Benefits to Claim in 2024

These three benefits are coming due, so make sure you use them up while you can! And put that cash…

Read more »

Person uses a tablet in a blurred warehouse as background
Tech Stocks

The Best AI Stocks on the TSX

Canadian companies like Kinaxis Inc (TSX:KXS) are leading the charge in AI development.

Read more »

Senior uses a laptop computer
Stocks for Beginners

Top Canadian Stocks to Buy Right Now With $7,000 

A $7,000 annual investment can help you in your journey to build a million-dollar portfolio. Make these stocks a part…

Read more »

how to save money
Energy Stocks

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

Canadian Natural Resources (TSX:CNQ) stock is looking good in November 2024.

Read more »

Trans Alaska Pipeline with Autumn Colors
Energy Stocks

Is Enbridge Stock a Buy for its Dividend Yield?

Enbridge is up 24% in 2024. Are more gains on the way?

Read more »

A worker uses a laptop inside a restaurant.
Dividend Stocks

Here’s the Average RRSP Balance at Age 34 for Canadians

The RRSP is a perfect tool for creating retirement income, but only if you contribute! Here's how to catch up.

Read more »