Start investing the stock market can seem quite exciting. For someone new, the idea of investing a little money in a company that will suddenly take off and make them rich beyond measure can be tempting. While it may be a bit far-fetched to become rich overnight, investing in growth shares can produce amazing results.
If you identify and invest in the right stocks, you can ultimately achieve multiple returns. For that, you should buy the kind of stocks that can grow significantly in value over a few years. It may seem like a fantasy, but it is not impossible. There are several high-quality TSX stocks that seemingly offer great value.
Today we’ll take a look at two such stocks that you can consider adding to your self-directed investment portfolio.
Celestica
Celestica (TSX:CLS) is a Toronto-based company with a market capitalization of $37.51 billion that provides supply chain solutions and is capitalizing on the rising demand for artificial intelligence (AI) technology. While the company is not an AI-related company per se, it does produce the components that the growing industry needs to support. A company that drives the growth of AI integration can arguably be considered just as important as companies that innovate AI-powered solutions.
Celestica shares experienced a tear this year. At the time of writing, CLS stock is trading at $326.12 per share, up a whopping 360% from its 52-week low. At current levels, with this uptick, it may seem reasonable to be concerned about choosing current levels as an entry point. However, we can see that AI adoption will only increase in the coming year. Celestica is one of the biggest beneficiaries of this. The company’s cash flow is solid and its share buybacks support the case that there may be more growth in the coming months and years.
Lightspeed trading
Lightspeed trading (TSX:LSPD) may not be a name that many investors will think positively about following the collapse of the tech sector a few years ago, which wiped out many investor returns. Lightspeed is a point-of-sale (POS) and e-commerce software provider headquartered in Montreal. The company has come a long way over the years as a POS software provider. It now offers an omnichannel commercial Software-as-a-Service (SaaS) platform.
The effects of the short sales report that led to such a drastic drop in stock prices appear to be waning. The recent move to a SaaS and payment model is paying off. The most recent quarterly report saw 15% revenue growth for Lightspeed Commerce. The company’s management plans to repurchase 12% of its shares in the full year 2025. If the company can keep this up, double-digit growth may not be too far off.
Silly takeaway
It’s important to remember that investing in the stock market is inherently risky. Even the safest and most boring TSX stocks can pass setbacks and are not immune to broader economic factors. Considering this, growth stocks tend to carry higher risk than others.
If you were investing in growth stocks, I would recommend building a well-balanced portfolio that is able to offset the decline in riskier investments. Provided you have a well-balanced portfolio, LSPD stock could be a good bet in terms of a growth turnaround. Celestica could be a good investment considering how it has already rewarded investors over the years and its position, which seems poised to deliver even more growth in the coming years.
I wouldn’t bet everything on these being stocks that can deliver tenfold returns. However, I would say that these two TSX tech stocks seem more likely to realize that than many others.
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