These 2 TSX stocks could have more explosive returns than Amazon (NASDAQ: AMZN)
E-commerce titan Amazon.com immediately received a price target upgrade from several analysts following its first quarter 2021 results that beat consensus estimates. Cloud computing revenues, in particular, jumped 32% to US $ 13.5 billion and posted operating income of US $ 4.16 billion.
Amazon is nice to have in your investment portfolio, although the share price is prohibitive for regular investors. On the TSX, two stocks are expected to experience explosive growth. If you compare the one-year returns of Lightspeed POS (TSX: LSPD) (NYSE: LSPD) and WELL Health Technologies (TSX: WELL) with Amazon, you’d forget about the US stock.
Growing Global Retail Base
Lightspeed is trading 19% off, so $ 72.59 per share should be a great entry point. Market analysts remain bullish and recommend a strong buy rating. Their price target over the next 12 months is $ 106, an appreciation of 46%.
Among TSX’s tech superstars is the $ 9.52 billion provider of software-as-a-Service (SaaS) platform that facilitates commerce. In the third quarter of fiscal 2021 (quarter ended December 31, 2020), Lightspeed’s total revenue increased 79% to $ 57.6 million from the third quarter of fiscal 2020. The loss net was $ 42.7 million compared to $ 15.8 million in the same period last year. Still, the business outlook is positive.
Despite the ongoing challenges due to the pandemic, management views the quarterly performance as a success in the market. Small and midsize businesses have adopted Lightspeed’s cloud platform to help them execute their omnichannel strategies.
Now Lightspeed will help its merchant customers increase their income. The company recently partnered with Google, as businesses attempt to reopen and increase in-store capacity. Google tools will be available on the Lightspeed platform. The integration means these independent retailers can automate listings and inventory levels in real time right into their Lightspeed platform at no cost.
Expect the Canadian leader in omnichannel commerce to strengthen its global retail base once it acquires VendLimited. Lightspeed will buy the cloud-based retail management software company for $ 350 million. Prior to this transaction, Shopkeep was the historic acquisition.
Consolidation and modernization
WELL Health Technologies’ 121.1% year-over-year price return surpasses Amazon’s 33.83%. As of May 11, 2021, the stock price was $ 7.23, a cumulative loss of 10.19%. Again, this is a good entry point, given the strong buy rating and analysts’ price predictions. They see a potential rise of 86.7% to $ 13.50 in one year.
The $ 1.41 billion omnichannel digital health company operates primary health care facilities in Canada. This Vancouver, British Columbia company also provides digital electronic medical records (EMRs) software and telehealth services. The main objective of WELL is to consolidate and modernize clinical and digital assets in the primary healthcare sector.
WELL reached a new milestone in the first quarter of 2021 (quarter ended March 31, 2021). The company surpassed the annualized revenue rate of $ 100 million for the first time. Its quarterly revenue of $ 25.6 million was a record and a 150% year-over-year increase. The company also acquired CRH Medical in the United States for US $ 372.9 million. Thus, the business units of WELL have grown to seven.
Lightspeed POS and Well Health Technologies buy if you’re looking for higher returns. Amazon is an ideal investment, but the price is grossly out of reach. This TSX stock pair will outperform the e-commerce titan in 2021. Likewise, the growth track is very long.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a premium Motley Fool service or advisor. We are Motley! 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’re posting sometimes articles that may not conform to recommendations, rankings or other content. .
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of the board of directors of The Motley Fool. Silly contributor Christopher Liew has no position in any of the listed securities. David Gardner owns shares of Amazon. The Motley Fool owns stocks and recommends Amazon. The Motley Fool owns shares of Lightspeed POS Inc and recommends the following options: January 2022 long calls at $ 1,920 on Amazon and January 2022 short calls at $ 1,940 on Amazon.