Growth companies will have a greater chance to expand their business, thus growing their financials and delivering higher returns for investors in the long run. However, identifying stocks with higher growth potential is challenging. Meanwhile, here are my three top TSX stock picks that you can buy and hold for more than 10 years to reap higher returns.
Nuvei
Nuvei (TSX:NVEI) is a Canadian fintech company that allows its clients to accept next-gen payments through its modular, flexible, and scalable platform. It operates in over 200 markets, supporting 150 currencies and 600 alternative payment methods (APMs). More enterprises are taking their businesses online amid the increased adoption of online shopping. This secular shift is making digital payments popular, thus creating a multi-year growth potential for the company.
Meanwhile, Grand View Research projects the global digital payment market to grow at a CAGR (compound annual growth rate) of 20.8% from 2023 to 2030. Amid the expanding market, Nuvei is looking at strengthening its infrastructure to support higher transactions, expanding its footprint into newer markets, and adding new innovative products. These initiatives could boost its financials in the coming years. The company acquired Paya Holdings earlier this week, which could strengthen its position in high-growth verticals, such as healthcare, utilities, government, and other business-to-business markets.
Amid the weakness in growth stocks, Nuvei trades around 57% lower than its 52-week high, thus offering an ideal entry point for long-term investors.
BlackBerry
BlackBerry (TSX:BB) is a Canadian tech company specializing in cybersecurity and IoT (Internet of Things) solutions. Amid digitization and remote working and learning, the cybersecurity solutions market is growing at a healthier rate. Meanwhile, Markets and Markets projects the segment to grow at a CAGR of 8.9% through 2027. Although the company is losing its market share in cybersecurity, its rebuilding efforts are on the right track, with a sequential improvement in its churn rate.
Its expanded innovative product offering and blue-chip clients could boost its financials in the coming years. Meanwhile, the company’s management expects its revenue from cybersecurity to grow at a CAGR of 10% over the next five years.
BlackBerry’s IoT business is growing by double digits. Through new design wins, the company is gaining market share in advanced driver assistance systems, safety-critical automotive systems, and digital cockpit verticals. Meanwhile, I expect the company to continue to do so in the coming years amid growing demand for connected vehicles and increased usage of electronic components in vehicles.
Meanwhile, the company’s management expects its IoT business to grow at an annualized rate of 19.8% through 2027. So, given its multiple growth drivers and discounted stock price, I expect BlackBerry to deliver multi-fold returns over the next 10 years.
WELL Health Technologies
My final pick is WELL Health Technologies (TSX:WELL), which focuses on facilitating healthcare professionals in providing seamless virtual services to patients. Supported by its innovative product offerings and strategic acquisitions, the company achieved around 3.5 million omnichannel patient visits last year, representing year-over-year growth of 50%. These growth initiatives have driven the company’s financials.
Meanwhile, telehealth services are gaining popularity with the growing penetration of internet services and the development of innovative products. Grand View Research projects the global telehealth market to grow at a CAGR of 24% through 2030, thus expanding the addressable market for the company. With its continued acquisitions across the United States and Canada, WELL Health is well equipped to benefit from market expansion.
