Unlocking Potential: 2 TSX Growth Stocks Aim to Grow $10,000 into $31,000 by 2030

Unlocking the potential of compound interest is a strategic pursuit, vividly illustrated by the impressive performance of low-volatility stocks such as Loblaw. With a compound annual growth rate (CAGR) of nearly 18% over the last five years, Loblaw showcases the power of sustained growth. Envision the possibilities - a $10,000 investment in Loblaw doubling in value within that timeframe. Looking beyond Loblaw, the TSX hosts growth stocks with robust fundamentals. Among them, goeasy (TSX:GSY) stands out, demonstrating the potential to outpace broader equity markets and deliver a substantial return on investment.

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Spotlight on Canadian Growth Stocks

In the quest for substantial wealth creation, two Canadian growth stocks stand out, exhibiting the potential for an average annualized return exceeding 21% by 2030. This implies the transformative ability to turn a $10,000 investment into more than $31,000.

Goeasy (TSX: GSY)

Positioned as a premier non-prime consumer lender, goeasy emerges as a top contender for long-term wealth creation. The company has witnessed rapid growth, fueled by solid demand for its unsecured and secured loans, along with point-of-sale financing. The financial performance underscores its prowess, with revenue and earnings per share (EPS) boasting a CAGR of 19.6% and 31.9%, respectively.

Highlighting its market outperformance, goeasy stock has surged over 360% in five years, reflecting an impressive CAGR of about 36%. The growth trajectory is anticipated to persist, driven by diversified revenue sources, a substantial target market, sustained demand, and operational efficiency enhancements. Notably, goeasy's robust balance sheet, diversified funding sources, and multichannel offerings position it for sustained growth.

As a Dividend Aristocrat, goeasy consistently rewards shareholders with substantial cash through increased dividend payments. The company's growing consumer loan portfolio, steady credit and payment performance, and operational efficiency contribute to its ability to elevate dividends at a solid pace. The stock's compelling valuation, with a forward price-to-earnings multiple of 10.2, presents an attractive opportunity, given its double-digit earnings growth potential and a respectable dividend yield.

Shopify (TSX: SHOP)

Deemed a must-have growth stock for long-term wealth creation, Shopify, the Canadian tech giant, has witnessed a phenomenal gain of over 410% in five years, reflecting a CAGR of nearly 38.5%. This trajectory accounts for the significant correction following the COVID-induced rally.

Shopify's strength lies in its consistent growth of merchandise volumes and top-line revenue. Positioned to benefit from the structural shift towards digital platforms in selling models, the company's innovative products and investments in merchant solutions signal robust future growth. The dominance in the e-commerce sector positions Shopify to capitalize on the digital shift, supported by an asset-light business model, go-to-market improvements, and an increasing take-rate.

In the pursuit of wealth creation, these Canadian growth stocks, goeasy and Shopify, emerge as compelling choices, offering investors the potential for an average annualized return exceeding 21% by 2030. As the investment landscape evolves, these stocks stand poised to unlock substantial value and deliver robust returns.