Wherever the market goes, I buy these 3 TSX stocks


Strained valuations and the resurgence of the virus make it difficult to predict the path of the stock market. While the market path remains uncertain, I am bullish on Shopify (TSX: SHOP) (NYSE: SHOP), greedy (TSX: GSY), and Trade at the speed of light (TSX: LSPD) (NYSE: LSPD).

I expect their continued investment in growth and strong secular industry trends to fuel growth and push their stocks higher.

Shopify

You might not be comfortable with Shopify’s high valuation, but it is undeniably the first Canadian title to build long-term wealth. Over the past three months, the stock has moved sideways due to the expected normalization of demand amid an economic reopening and difficult year-to-year comparisons. However, increasing spending on ecommerce platforms and a large addressable market indicates that Shopify could generate impressive returns in the years to come, while its market share could continue to grow.

Shopify’s strong merchant acquisition strategy, including adding high-growth sales channels and product expansion, positions it well to capitalize on demand. Meanwhile, the increased adoption of its multi-currency payment platform, strong distribution network and international expansion will likely accelerate its growth.

With strong adoption of its products, steady growth in GMV (gross merchandise volume), strategic capital allocation, and operating leverage, Shopify could continue to make its investors very wealthy over time.

greedy

goeasy has consistently created wealth for its investors through its above average growth. Strong customer demand, geographic expansion and wide product range have led to double-digit growth in sales and profits in recent years. It should be noted that goeasy’s revenue has grown at a CAGR of 12.8% since 2001. Additionally, its adjusted revenue has grown at a CAGR of 31% during the same period.

Looking ahead, I expect goeasy’s profits to continue to grow rapidly thanks to increased loan origination and strong payment volumes. Additionally, increased penetration of secured loans, strategic acquisitions, new product launches and expansion of distribution channels bode well for future growth and will likely be drive your stock upper.

Thanks to its strong earnings, goeasy has paid dividends steadily over the past 17 years. Additionally, the company has raised it to a 34% CAGR over the past seven years. Thanks to its strong competitive positioning in the subprime loan market and the continued dynamics of its business, goeasy remains well positioned to bolster returns to its shareholders through increased dividend payments.

Speed ​​of light

Thanks to its exceptional financial performance against a backdrop of increased demand for its digital products, Lightspeed stock has jumped about 98% in six months. In addition, I am waiting for the momentum to support, reflecting favorable industry trends, a large addressable market, and a growing and diverse customer base.

In particular, the solidity of its core business and recent acquisitions allow it to achieve exceptional financial and operational performances over the coming quarters, which should boost its title. Additionally, Lightspeed’s focus on expanding into existing markets, attracting new customers, and targeting new geographies and verticals bodes well for future growth.

Lightspeed is introducing new modules, which should support its average revenue per user. Meanwhile, the company is increasing its market penetration, expanding its product base and entering new verticals through acquisitions. Overall, Lightspeed’s strong fundamentals and strong demand indicate the company is poised to deliver exceptional returns over the long term.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We are straight! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer, so we post sometimes articles that may not conform to recommendations, rankings or other content. .

Foolish contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool owns stock and recommends Lightspeed POS Inc. and Shopify. The Motley Fool recommends the following options: $ 1,140 long calls in January 2023 on Shopify and $ 1,160 short calls in January 2023 on Shopify.

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