3 Stocks That Could Turn a $100,000 Portfolio Into $1 Million Sooner Than You Think

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Written by Amy Legate-Wolfe at The Motley Fool Canada

A Canadian stock that turns $100,000 into $1 million sooner than you think rarely comes from a lucky bounce. It comes from a business that reinvests cash well, keeps winning customers, and holds up when markets get rough. You need a long runway, a price, and the patience to ride out drawdowns. If you can’t hold through ugly weeks, you can’t hold long enough for compounding to do the heavy lifting. So, let’s look at three Canadian stocks to consider.

Constellation Software (TSX:CSU) buys and runs vertical market software firms. It targets niche products that customers rely on every day, like billing, scheduling, and compliance tools. Switching can hurt, so retention tends to stay strong. CSU then uses the cash it generates to buy more small software firms, and it repeats the process year after year. That reinvestment loop has helped it push higher through more than one market cycle.

The latest quarter showed that the engine still has fuel. In the third quarter (Q3), it grew revenue 16% to US$2.9 billion and increased net income attributable to common shareholders 28% to US$210 million, or US$9.89 per diluted share. Cash flows from operations rose to US$685 million, and free cash flow available to shareholders reached US$529 million. Shares have dropped after CEO and founder Mark Leonard stepped down, providing a notable discount as shares are down 47% in the last year.

Topicus.com (TSXV:TOI) plays a similar compounding game, but it focuses on Europe. It owns software groups that sell recurring products to governments and businesses, and then it adds bolt-on deals to widen its portfolio. That approach can look dull in real time, yet it can create strong long-term growth when management keeps discipline on price and integration. Investors should track organic growth and cash flow, as those numbers reveal the health of the base business in any quarter.

In Q3 2025, Topicus grew revenue 24% to €387.9 million and increased cash flows from operations 53% to €48.4 million. It also reported a net loss of €120.9 million, or €0.94 per diluted share, mainly because of a €221.7 million expense tied to how it accounted for its Asseco investment. You can treat that as one-off noise, but you still need to respect the complexity and the currency swings that can whip reported results. And as it’s also run by Constellation, shares are also down by 24% in the last year.

goeasy (TSX:GSY) compounds in a different lane. It lends to Canadians with near-prime to non-prime credit and earns strong yields when underwriting stays tight. It grows a loan book, expands channels like point-of-sale financing and secured options, and uses scale to spread costs. This model can grow quickly, but it reacts to job losses, higher delinquencies, and tougher regulations. A strong operator can still win, but it must stay disciplined when competitors chase growth too hard.

In the third quarter, goeasy delivered record revenue of $440 million and grew its consumer loan portfolio to $5.44 billion. A $43.1 million non-cash fair value change hit results, yet it still posted net income of $33.1 million and diluted earnings per share (EPS) of $1.98, while adjusted diluted EPS came in at $4.12. Right now, after dropping 27% in the last year, it trades at an incredible 9.4 times earnings with a 4.7% dividend yield.

If you want a credible path from $100,000 to $1 million, you need businesses that can reinvest for years without running out of room. CSU and TOI aim to do that through sticky software cash flow and acquisitions, while GSY aims to do it through loan growth and careful risk control. None of these names offers a smooth chart, and each one has a risk button you must watch. Still, if you can keep your time horizon long and your emotions quiet, this trio can earn a spot on a serious watchlist.

The post 3 Stocks That Could Turn a $100,000 Portfolio Into $1 Million Sooner Than You Think appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Topicus.com. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

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