E-commerce titan Amazon.com instantly received a price target upgrade from multiple analysts following its Q1 2021 earnings results that beat consensus estimates. The cloud computing revenue, in particular, jumped 32% to US$13.5 billion and delivered an operating profit of US$4.16 billion.
Amazon is lovely to have in your investment portfolio, although the share price is prohibitive to regular investors. On the TSX, two stocks are due for explosive growth. If you compare the trailing one-year returns of Lightspeed POS (TSX:LSPD)(NYSE:LSPD) and WELL Health Technologies (TSX:WELL) with Amazon’s, you’d forget about the American stock.
Growing global retail base
Lightspeed trades at a 19% discount, so $72.59 per share should be a great entry point. Market analysts remain bullish and recommend a strong buy rating. Their price target in the next 12 months is $106, or appreciation of 46%.
The $9.52 billion provider of commerce-enabling Software-as-a-Service (SaaS) platform is among TSX’s tech superstars. In Q3 fiscal 2021 (quarter ended December 31, 2020), Lightspeed’s total revenue increased 79% to $57.6 million compared to Q3 fiscal 2020. The net loss was $42.7 million versus the $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 market success. Small- and medium-sized businesses adopted Lightspeed’s cloud-based platform to help enable their omnichannel strategies.
Now, Lightspeed will help its merchant clients increase revenues. The company recently partnered with Google, as businesses attempt to reopen and expand in-store capacity. Google tools will be available within the Lightspeed platform. The integration means these independent retailers can automate ads and inventory levels in real-time directly in their Lightspeed platform at no expense.
Expect the Canadian omnichannel commerce leader to strengthen its global retail base once it acquires VendLimited. Lightspeed will buy the cloud-based retail management software company for $350 million. Before this deal, Shopkeep was the landmark acquisition.
Consolidation and modernization
WELL Health Technologies’s trailing one-year price return of 121.1% dwarfs Amazon’s 33.83%. As of May 11, 2021, the share price is $7.23, or a year-to-date loss of 10.19%. Again, it’s a good entry point, given the analysts’ strong buy rating and price forecast. They see a potential upside of 86.7% to $13.50 in one year.
The $1.41 billion omnichannel digital health company operates primary healthcare facilities in Canada. This Vancouver, BC-based firm also provides digital electronic medical records (EMR) software and telehealth services. WELL’s central focus is to consolidate and modernize clinical and digital assets within the primary healthcare sector.
WELL achieved a new milestone in Q1 2021 (quarter ended March 31, 2021). The company surpassed the $100 million annualized revenue run-rate for the first time. Its $25.6 million quarterly revenue was a record high and a 150% year-over-year increase. The company also acquired CRH Medical in the U.S. for US$372.9 million. Thus, WELL’s business units have increased to seven.
Lightspeed POS and Well Health Technologies are screaming buys if you’re in search of superior returns. Amazon is an ideal investment, but the price is exceedingly out of reach. This pair of TSX stocks will outperform the e-commerce titan in 2021. Likewise, the growth runway is very long.
The post These 2 TSX Stocks Could Have More Explosive Returns Than Amazon (NASDAQ:AMZN) appeared first on The Motley Fool Canada.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Christopher Liew has no position in any of the stocks mentioned. David Gardner owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon. The Motley Fool owns shares of Lightspeed POS Inc and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.
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