3 Growth Stocks That Can Double Your Money in 2021

Investing in growth companies remains the best bet as we head into 2021. High-growth stocks have the potential to increase your investments multi-fold allowing you to benefit from compounded returns over the long-term…

For example, a $1,000 investment in Canada’s e-commerce giant Shopify (SHOP), soon after its IPO, would have returned a staggering $33,000 today. Growth companies increase their sales and earnings at a far higher pace compared to peers which mean their stock price also rises at an exponential rate.

While these companies trade at a premium or at an expensive valuation, long-term shareholders are rewarded with handsome returns over time. Here we look at three such growth stocks that are ideal for the growth investor.

A digital-payments company

The first stock on the list is Square Inc. (SQ), a digital payments company that is eyeing rapid expansion. Companies in the fintech space have been immune to the impact of the COVID-19 pandemic. Instead, the dreaded virus has acted as a tailwind for Square and accelerated the digital payments trend in the last six months.

Square is part of a swiftly expanding market which is forecast to grow from $910 billion in 2020 to $1.5 trillion in 2024. Comparatively, Square continues to expand at a faster rate than the overall market and is forecast to increase sales by a robust 230% year-over-year in 2020 to $7.5 billion.

In the June quarter, Square’s total sales rose 64% to $1.9 billion while the gross payment volume on its platform was up 50% year-over-year. One of the key revenue drivers for the company in the upcoming quarters will be its Cash App where monthly active users have now touched 30 million at the end of Q2 and sales growth stood at 140%.

Roku stock is up 51% year-to-date

Roku (ROKU) is one of the leading streaming companies in the world. The developed world has seen a massive shift in the way content has been consumed in the last few years. This phenomenon, also known as cord-cutting, has meant…

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