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If investors are able to choose the right stocks to invest in for the long term, they could place themselves in a position of financial independence in the future. However, it is not an easy task. In addition, investors must ensure socket on those stocks long enough to see the huge gains that flow from the position. More often than not, investors will sell stocks after making small gains in order to “lock in profits”. Here are three stocks to consider investing $ 10,000 in right now.
A strong history of growth
In the past six years, few companies on the TSX managed to surpass Shopify (TSX: SHOP) (NYSE: SHOP). To substantiate this claim, just look at the TSX30. This is a list of the 30 best performing stocks on the Toronto Stock Exchange over a three year period. In the 2020 edition of the list, Shopify came in at # 1. He was so far removed from the rest of the field that his earnings during that time were almost the sum total of the next three companies combined. In 2021, Shopify came in second.
While this may lead some investors to think that Shopify’s best years are behind, I would argue the opposite. The e-commerce industry is still much more in its infancy than its maturity in Canada. As of April 2020, online sales represented approximately 11% of all Canadian retail sales. However, in other parts of the world, online sales accounted for 30% or more of all retail sales. Shopify has already turned $ 10,000 into almost $ 550,000 since its IPO, but there’s still a lot to come.
Ready to take advantage of the boom in e-commerce
Shopify isn’t the only Toronto Stock Exchange listed company that is able to succeed alongside the growing e-commerce industry. Nuvei (TSX: NVEI) is expected to experience massive growth over the next few years. The company first made headlines when it went public. On its first trading day, Nuvei closed the largest technology public offering in Canadian history. This means the company has managed to raise more money through its IPO than popular growth stocks like Shopify and Speed of light.
Nuvei provides merchants with an omnichannel payment platform. Using its software, businesses can accept payments online, mobile, in-store, and unattended. Nuvei is present in more than 200 global markets, accepts 480 payment methods, 150 currencies and 40 cryptocurrencies. In its latest earnings presentation, the company reported a 114% year-over-year increase in quarterly revenue. This news caused a 16% increase in Nuvei shares the next day. It could be a top stock for many years to come.
First-class growth stock
Investors familiar with my writing should also know Topicus.com (TSXV: YOU). The company has been one of the top performers on the Toronto Stock Exchange since going public in February. One of the most attractive aspects of this business is its close connection with Constellation Software. For those unfamiliar, Topicus was a subsidiary of the largest tech company until last February. Although it now operates as its own entity, Topicus is still heavily influenced by its former parent company.
If Topicus is able to build on the wealth of experience Constellation provides, then it could avoid some of the mistakes Constellation made in the beginning. This could allow Topicus to experience massive growth in the years to come. If Topicus stock can fetch even half of the returns Constellation has generated over the past decade, investors should be very happy.