Got Idle Cash? Buy These 4 High-Growth Stocks Now

Invest your idle cash in these high-growth TSX stocks for superior returns.

If you’ve got some idle cash and don’t require it for any emergency, consider investing in TSX stocks that are growing their businesses fast. Let’s dive into four such Canadian companies that are expanding rapidly and will likely deliver solid returns in the coming years. 

goeasy

goeasy (TSX:GSY) has consistently grown its financials at a double-digit rate. To be precise, revenues of this subprime lender have grown at a CAGR of about 13% in the last 20 years. Higher revenues and operating leverage have driven its adjusted earnings by a CAGR of 25% during the same period.  

Thanks to its solid financial performance, goeasy stock has multiplied investors’ wealth and outpaced the benchmark index by a wide margin. Furthermore, it has consistently paid dividends and raised the same at a CAGR of 34% in the past seven years. 

My bullish outlook on goeasy is based on its ability to drive higher loan volumes and launch new products. Furthermore, channel and geographic expansion, solid credit performance, increased penetration of secured loans, and operating efficiency could continue to cushion its earnings. 

Payfare

Financial technology company Payfare (TSX:PAY) offers gig workers payout and digital banking solutions. Payfare is growing fast, as reflected through its solid user base. During the last reported quarter, Payfare announced that its active user base increased 37% on a quarter-over-quarter basis. Moreover, it increased by 679% year over year. 

Looking ahead, economic reopening and increased demand for food delivery and rideshare will likely drive its active user base. Moreover, its partnership with large gig platforms like Uber and DoorDash augur well for future growth

Overall, its scalable platform, growing revenue and user base, lower customer acquisition cost, expansion in high-growth verticals, and cost optimization provide a long runway for growth. 

Dye & Durham

Cloud-based software and tech solutions provider Dye & Durham (TSX:DND) has been growing rapidly on the back of its acquisitions. Further, its large and diversified blue-chip customer base, high retention rate, and long-term contracts support organic growth.  

Notably, Dye & Durham has more than 50K active customers with a low customer churn rate. Also, Dye & Durham benefits from long-term contracts with top clients. Looking ahead, higher revenue realizations from acquisitions will likely drive its top line and adjusted EBITDA. 

Overall, its strong active customer base, continued demand, and accretive acquisitions position it well to deliver solid financials and, in turn, strong returns. 

Docebo

Corporate e-learning solutions provider Docebo (TSX:DCBO)(NASDAQ:DCBO) is another Canadian company that is growing rapidly and could be a solid addition to your long-term portfolio. Its recurring revenues, customer base, and contract value is growing fast, providing a solid foundation for future growth. 

Docebo has more than 2,600 customers, with an increase in the number of customers opting for multi-year contracts. It’s worth noting that its recurring revenues are growing at a CAGR of 65%. Meanwhile, its average contract value has tripled in the last five years. 

The continued strength in its core business, growing addressable market, high net dollar retention rate, strategic acquisition, and improving marketing productivity will likely drive its growth.

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. The Motley Fool recommends Docebo Inc.

More on Investing

Train cars pass over trestle bridge in the mountains
Dividend Stocks

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

Can CNR stock continue its long-term outperformance into 2025 and beyond? Let's explore whether now is a good time to…

Read more »

engineer at wind farm
Energy Stocks

Invest $20,000 in This Dividend Stock for $100 in Monthly Passive Income

This dividend stock has it all – a strong outlook, monthly income, and even more to consider buying today.

Read more »

Hourglass and stock price chart
Stock Market

It’s Not Too Late: Invest in These TSX Growth Stocks Now

Solid fundamentals of these top TSX growth stocks could help them maintain strong upward momentum in the years to come.

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

These top dividend stocks both offer attractive yields and trade off their highs, making them two of the best to…

Read more »

stocks climbing green bull market
Stocks for Beginners

3 TSX Stocks Soaring Higher With No Signs of Slowing

Don't ignore stocks just because they look like they're at a high price. Instead, see exactly why they've driven so…

Read more »

dividends can compound over time
Bank Stocks

Is TD Bank Stock a Buy for Its 5.2% Dividend Yield?

TD Bank stock offers a rare 5.2% dividend yield—can it rebound from challenges and reward contrarian investors? Here's what to…

Read more »

chart reflected in eyeglass lenses
Investing

How Should a Beginner Invest in Stocks? Start With This Index Fund

This Vanguard index fund is the perfect way to start a Canadian investment portfolio.

Read more »

analyze data
Bank Stocks

Is BMO Stock a Buy for its 4.7% Dividend Yield?

Bank of Montreal is up 20% since late August. Are more gains on the way?

Read more »