Shopify Inc. (TSX:SHOP)(NYSE:SHOP) has been a star on the TSX this year with its share price more than doubling in 2017. Some negative press has eroded some of the stock’s impressive gains, but there are not many companies that have done better. For investors concerned about Shopify, you may want to take a look at the three companies below that have actually outperformed the high-flying tech stock this year and that could still be great buys today.
Ballard Power Systems Inc. (TSX:BLDP)(NASDAQ:BLDP) has seen its share price rise 188% since January, and the stock is currently trading near all-time highs. Back in September, Ballard’s stock got a boost when it was announced that the company would provide its fuel cell engines to power hydrogen-tram buses in France that are being developed by Van Hool, one of Ballard’s European partners.
This development could undoubtedly be a sign of things to come and could means lots of growth if more buses opt for cleaner energy. These tram buses could prove to be a good practice run for how well the cleaner fuel cells work.
Ballard saw its revenue rise 51% last year and saw a similar result in its latest quarter. Unfortunately, the company has struggled to post a profit in recent years, and with net losses in the past four quarters, that’s likely going to continue.
With a price-to-book value of 9.4, you will be definitely paying a premium for the company’s future growth, although that is likely to be true of any stock that has seen its share price rise so much. By comparison, Shopify’s stock price is nearly 10 times its book value.
Aurinia Pharmaceuticals Inc. (TSX:AUP)(NASDAQ:AUPH) is another stock that has seen its share price explode with returns of over 212% in 2017. At under $9, the stock has actually dropped from its 52-week high of $14.17 that was reached back in March, when the company released its fourth-quarter results and also announced the strong progress that its Voclosporin drug had made in showing that it could improving the long-term health of patients with lupus nephritis.
However, shortly after the stock saw a drop in share price when the company announced a significant share issue would take place later that month to help fund further research and development. Aurinia has opted not to use any debt and fund itself through issues of common stock, and with a current ratio of 53, the company has very strong liquidity on its books.
Kirkland Lake Gold Ltd. (TSX:KL) is a gold producer with mines in Canada and Australia, and the company has seen its share price rise 134% in 2017. In late July, the company provided an update on its Fosterville mine, which saw mineral reserves more than double as the grade of gold had increased significantly.
The stock recently reached a new all-time high of $18.57, only to drop after its Q3 operating results in October failed to impress analysts, and the stock was subsequently downgraded.
In 2016, the company saw a big year as sales of $407 million were almost quadruple Kirkland’s revenue in the prior year. The company is continuing to build on those strong results with its latest quarter showing revenues more than doubling 2016.
This small-cap stock is “Hidden in Plain Sight!” It’s flying under the radar and is being touted as a “royalty collector” by several of our top Canadian analysts.
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Fool contributor David Jagielski has no position in any stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of Shopify and SHOPIFY INC. Shopify is a recommendation of Stock Advisor Canada.