Investors should still be on the hunt for growth, as the Canadian stock market has been hit with volatility during the summer season. In yesterdayâs trading session, the two best-performing sectors on the S&P/TSX Composite Index were energy and health care. Today, I want to pinpoint three stocks that have the potential to turn our initial investment of $3,000 into $30,000 by the time we enter the next decade. Letâs dive in!
Hereâs why this TSX stock is on track for big growth through the rest of the 2020s
StorageVault (TSX:SVI) is the first TSX stock Iâd look to snatch up with $1,000 in cash. This Toronto-based company owns, manages, and rents self-storage and portable storage space across Canada. Shares of this TSX stock have dropped 8.7% month over month as of close on Tuesday, September 5. Meanwhile, the stock has plunged 25% so far in 2023.
Investors should look to get in on the self-storage market in Canada and around the world. Market researcher Mordor Intelligence recently valued the global self-storage market at US$58.2 billion in 2023. The same report projects that this market will reach US$72.1 billion by 2028. That would represent a compound annual growth rate (CAGR) of 4.3% during the forecast period.
In the second quarter (Q2) of fiscal 2023, StorageVault reported revenue of $71.3 million — up from $66.0 million in Q2 2022. Moreover, adjusted funds from operations (AFFO) rose to $22.1 million compared to $21.8 million in the previous year. This stock is geared up for very strong growth going forward.
You can rest easy with this growth stock in your portfolio
Sleep Country Canada (TSX:ZZZ) is the second stock Iâd suggest snatching up at a discount in early September with another $1,000 in cash. This Toronto-based company is engaged in retailing mattresses and other bedding-related products in Canada. Its shares have dropped 12% over the past month. Sleep Country stock is still up 3.4% so far in 2023. Investors can see more of its recent and past performances with the interactive price chart below.
In Q2 2023, this company saw revenue fall 4.6% to $217 million. Moreover, adjusted net income decreased 42% year over year to $14.8 million, and diluted adjusted earnings per share (EPS) plunged 39% to $0.42. Shares of this TSX stock currently possess a very attractive price-to-earnings ratio of nine. Meanwhile, Sleep Country offers a quarterly dividend of $0.237 per share. That represents a solid 4% yield.
One more stock Iâd targeting for its growth potential right now
Nuvei (TSX:NVEI) is the third and final TSX stock Iâd look to snag in the late summer season of 2023. This Montreal-based company provides payment technology solutions to merchants and partners in North America, Europe, and around the world. Shares of this top tech stock have dropped 27% in 2023. The stock is down 32% year over year.
MarketsAndMarkets recently valued the global payment at US$103 billion in 2023. It projects that this market will reach US$160 billion by 2028, which would represent a compound annual growth rate of 9.2% over the forecast period.
This company released its Q2 2023 earnings on August 9. In the first half of fiscal 2023, Nuvei posted total volume growth of 57% to $93.0 billion. Moreover, it posted revenue growth of 32% to $563 million. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. This measure aims to give a better picture of a companyâs profitability. Nuvei reported adjusted EBITDA growth of 12% to $206 million in the first half of fiscal 2023.
Nuvei still has fantastic growth potential, as more and more consumers migrate away from cash and towards purely digital payments.
The post 3 Stocks That Could Turn $3,000 Into $30,000 by 2030 appeared first on The Motley Fool Canada.
Before you consider Nuvei, you’ll want to hear this.
Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in August 2023… and Nuvei wasn’t on the list.
The online investing service they’ve run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 26 percentage points. And right now, they think there are 5 stocks that are better buys.
See the 5 Stocks
* Returns as of 8/16/23
setButtonColorDefaults(“#5FA85D”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43A24A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
- These 2 Stocks Had a Rough Month: Are They Deals Today?
- $10,000 Invested in These Growth Stocks Could Make You a Fortune Over the Next 10 Years
- Millennials: 4 Dirt-Cheap Stocks to Buy Before the Summer Ends
- Got $5,000? 3 Tech Stocks to Buy and Hold for the Long Term
- 3 TSX Mid-Cap Stocks With Massive Growth Potential