SVI:CC - These 2 TSX Stocks Have Doubled Over 5 Years: Can They Do it Again?
When many Canadian stock market investors think of investing in growth stocks , the likes of Shopify , Lightspeed Commerce , and other high-growth stocks typically come to mind. The stellar multi-bagger returns these tech giants delivered to shareholders have made expectations high for growth stocks.
However, not all growth stocks double investment returns in a matter of months. Some might take a couple of years, while others can do it over two decades. Depending on the market conditions, the company’s fundamentals, and the industry outlook, it is even possible for stocks to deliver 100% returns in only a few weeks.
However, investors should always remember that past performance is not an indicator of future results. Just because a stock has already grown at a certain pace for a certain amount of time in the past does not guarantee similar returns in a similar timeframe in the future. It is important to study the factors that led to rapid growth and whether the industry outlook indicates similar potential for the stock.
Today, I will discuss two growth stocks that have more than doubled investor returns in the last five years through capital gains. It could be worthwhile looking at these assets to learn.
StorageVault Canada
StorageVault Canada (TSX:SVI) is a $2.21 billion market capitalization real estate company that specializes in owning and operating a portfolio of storage units throughout Canada. The company’s performance has been excellent in recent years, and despite the recent pullback across the board, it is up by 146.22% in the last five years.
StorageVault Canada stock trades for $5.88 per share at writing. Despite its stellar growth over the last five years, the stock has not had a great year on the TSX in 2022. It trades for a 17.30% discount year to date. It could be an attractive investment to consider at current levels.
The real estate business focuses on a niche asset class in the industry, giving StorageVault a competitive advantage. The stock is overvalued right now, and it might be good to practice caution with how much you invest in it if you decide to add it to your portfolio.
TECSYS
TECSYS (TSX:TCS) is a $535.60 million market capitalization company engaged in developing and selling enterprise supply chain management software for companies across various market segments. As with many other tech companies. TECSYS stock saw a boom in its growth immediately after the pandemic. Even after the recent decline in its valuation, TECSYS stock is up by 160.83% from five years ago.
TECSYS stock trades for $37.09 per share at writing. Despite being up by a significant margin from its valuation five years ago, it trades for an over 30% discount year to date in 2022. The supply chain management and solutions company is suffering from the impact of the sector-wide meltdown for tech stocks.
The demand for its services is high right now. Its performance on the stock market could see investors enjoy superior returns, provided the broader tech sector picks up momentum. However, a bearish performance by the tech industry could make it a risky investment to consider.
Foolish takeaway
The last two years have been a roller coaster for Canadian markets. The initial shock with the onset of COVID-19 sent the entire market spiraling down before it rapidly recovered. The post-pandemic recovery sent stocks soaring to greater heights before corrections began happening due to several macroeconomic factors.
StorageVault Canada stock and TECSYS stock have delivered stellar returns to investors in the last five years. While it is uncertain whether investors will see similar returns in the next five years, the companies look well positioned to deliver strong returns in the coming months.
The post These 2 TSX Stocks Have Doubled Over 5 Years: Can They Do it Again? appeared first on The Motley Fool Canada .
Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify and Tecsys Inc. The Motley Fool recommends Lightspeed Commerce.
2022