It is said that investing in the stock market is the best way to create wealth. Certainly, companies like Shopify and Lightspeed have done well in supporting that claim this year. However, finding the right stocks before they see massive gains is where the real wealth is created. In this article, I will discuss two companies that are well set up for success in the new year.
Powering Q4’s massive retail events The fourth fiscal quarter is loaded with massive retail events. Black Friday, Cyber Monday, and the holiday shopping season are all great opportunities for retail companies to flourish. However, one industry that often gets ignored is the payments industry. Companies that operate in this space allow smaller merchants and large retailers to operate their businesses. Because of this important role in the economy, investors should strongly consider an investment in Nuvei (TSX:NVEI).
This company provides payment technology solutions to over 50,000 businesses across more than 200 global markets and accepts 450 different payment methods. Nuvei differentiates itself from its competitors by focusing on in-store and online platforms. This allows the company to cover a much wider range of payment options, whereas its competitors are more focused on the online space.
Nuvei processed about $11.5 billion in payments in Q3 2020, which represents a year-over-year increase of 62%. With consumers spending more during this year’s Black Friday-Cyber Monday weekend than any other in history, Nuvei could report amazing numbers in its Q1 earnings report.
The COVID-19 vaccine may just be around the corner, but telehealth is here to stay This year was a tremendous one for companies that operate in the telehealth space. Because of the widespread stay-at-home orders, doctor visits were required to take place online. This resulted in a large spike in the number of online medical visits and investors were sure to reward those companies accordingly. WELL Health Technologies (TSX:WELL) is the leader among Canadian telehealth companies and is in position to continue growing in 2021.
As of this writing, WELL Health stock has increased about 370% year to date. This can be attributed to the company’s outstanding revenue growth. In its 2019 annual report, WELL Health noted a year-over-year increase of 211% in its total revenue. The company also included a line note indicating that it had become the third-largest electronic medical records service provider in Canada.
One of the best performers on the TSX Venture Exchange over the last three years, WELL Health Technologies has continued its red-hot run in the public markets this year. With patients and investors more aware of the telehealth space than ever, it is almost certain that all eyes will continue to fall on companies like WELL Health.
Foolish takeaway Investing in the stock market is an excellent way to create wealth. However, choosing the right companies at the right time can go a long way in helping you secure financial independence. Nuvei and WELL Health Technologies are both well positioned to keep growing in 2021 and make investors rich in the process.
The post 2 Stocks That Will Make You Rich in 2021 appeared first on The Motley Fool Canada.
Fool contributor Jed Lloren owns shares of WELL and Shopify. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. The Motley Fool owns shares of Lightspeed POS Inc.
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