Breaking News
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

3 High-Growth Canadian Stocks to Buy Right Now

Stock MarketsJul 26, 2021 16:45
Saved. See Saved Items.
This article has already been saved in your Saved Items
3 High-Growth Canadian Stocks to Buy Right Now

High-growth stocks will have the potential to grow their financials above industry average while delivering superior returns. Investors are ready to pay higher prices given their high growth prospects. Hence these stocks trade at a premium.

With the Canadian benchmark index, the S&P/TSX Composite Index, trading close to its all-time high, here are three high-growth stocks that you can buy right now to earn superior returns.

Magna International As customers are shifting toward eco-friendly vehicles, the EV market is witnessing exponential growth over the last few years. So, I have picked Magna International (TSX:MG)(NYSE:MGA) as my first pick. The Canadian auto parts manufacturer has significant exposure to the EV industry. In December, the company announced a joint venture with LG Electronics to produce e-motors, onboard chargers, inverters, and e-drive systems.

Besides, the company also manufactures a wide range of electric powertrain products used in EVs. Meanwhile, the company expects EV components to form 50% of its total production by 2023. Further, the company signed an agreement last week to acquire Veoneer, which could strengthen its position in the advanced driver assistance systems (ADAS) market.

Despite its healthy growth prospects, the company has corrected close to 20% from its last month’s highs. So, I believe investors should use this correction to accumulate Magna International to earn superior returns.

goeasy goeasy (TSX:GSY), which services sub-prime lenders, has been one of the top performers over the last two decades, with its top and bottom-line growing at double-digit rates. Meanwhile, I expect the momentum to continue, given its large addressable market, increased penetration, improving economic environment, and omnichannel expansion.

Besides, the company acquired LendCare Holdings in April. The acquisition could expand its product line and point-of-sale channels while also improving its risk profile through diversification. The company is also looking at launching an auto loan verticle, an addressable market of $13 billion. It also focuses on upgrading its system with digital advancements, enhancing its multiproduct, multi-language, and multi-currency capabilities.

Besides, the company also pays quarterly dividends. It has raised its dividends for the last seven consecutive years at a compound annual growth rate (CAGR) of 34, with its forward dividend yield standing at 1.57%. So, given its healthy growth prospects, I expect the uptrend in goeasy’s stock price to continue.

Lightspeed POS Lightspeed POS (TSX:LSPD)(NYSE:LSPD), one of the top beneficiaries of the pandemic, has delivered impressive returns of over 900% from its lows in March 2020. Despite the surge, I believe the rally could continue. As small and medium-scale businesses continue to expand their digital presence, the demand for Lightspeed POS’s products and services continues to rise.

Besides, the company is also focusing on innovation to expand its customer base and increase its revenue per customer.

Apart from organic growth, Lightspeed POS also relies on acquisitions to strengthen its competitive positioning and expand geographically. So far this year, the company has acquired Vend and NuORDER while working on completing the acquisition of Ecwid. In January, the company also launched Lightspeed Supplier Network for North American retailers, improving their supply chain.

Besides, its financial position also looks healthy, with its cash and cash equivalents standing at $807.2 million as of March 31. So, Lightspeed POS is well equipped to continue with its acquisitions.

The post 3 High-Growth Canadian Stocks to Buy Right Now appeared first on The Motley Fool Canada.

The Motley Fool owns shares of and recommends Lightspeed POS Inc. The Motley Fool recommends Magna Int’l. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.

This Article Was First Published on The Motley Fool

3 High-Growth Canadian Stocks to Buy Right Now

Related Articles

TSX Today: 4 Things to Watch for on September 27
TSX Today: 4 Things to Watch for on September 27 By The Motley Fool - Sep 27, 2021

The S&P/TSX Composite Index, the main Canadian stock market performance gauge, took a breather on Friday last week after losing 59.27 points to close 0.29% lower at the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email