Facebook Inc (NASDAQ:FB) made the rounds in the financial press last week after posting a blowout quarter that saw revenue climb by 30% and diluted EPS by a whopping 65%. It was an incredible quarter. And the markets rewarded Facebook by sending its stock 16% higher in the span of just two days.
No doubt these numbers would make any investor salivate. But if you’re a Canadian investor who prefers to invest in domestic companies, there are plenty of high-flying growth stocks to choose from on the TSX as well. In fact, some are even growing revenue and/or earnings faster than Facebook. Sectors as diverse as cannabis, clothing and, yes, even tech, have given us some great stocks that have the potential to beat the market in the next 12 months. The following are just three that are growing revenue even faster than Silicon Valley’s earnings juggernaut.
Aurora Cannabis Inc (TSX:ACB)(NYSE:ACB)
Aurora Cannabis Inc is currently the fastest growing publicly traded cannabis producer in the world. In its most recent quarter, it grew revenue by 260% and net income by an incredible 2800%. Before you get too excited about that net income figure, you should note that it was mainly thanks to unrealized non-cash gains on marketable securities. The company’s operating income was still negative in Q1. Nevertheless, its bottom line earnings growth, by GAAP standards, was indeed phenomenal.
Canada Goose is easily one of Canada’s fastest growing companies, with top-line revenue growth of 33% and earnings growth of 34% in its most recent quarter. The net income figure doesn’t touch Facebook’s 60%, but it has the Silicon Valley giant beaten on revenue growth by a nice margin. Apart from this frothy growth, the company is just great overall, with a 15% profit margin and a killer 45% return on equity. Canada Goose’s value is based on its brand recognition, which allows the company to sell its coats at a high premium, along with strong growth in emerging markets like China. An overall winner with tons of economic factors in its favour.
Shopify Inc may be Canada’s fastest-growing company that’s not a cannabis producer. With 58% revenue growth in its most recent quarter, it easily bests Facebook’s 30% figure, although it doesn’t have quite the same growth in diluted EPS. Shopify has had some issues with growing expenses in past quarters, so its next quarterly report is one to keep an eye open for. Speaking of which, that quarterly report will be coming out on February 12, which means we won’t have to wait long to see how things are playing out.
The tech world is full of fast-growing stocks that grab headlines for big numbers. Facebook happens to be one of the most impressive at the moment. But you needn’t leave domestic stocks by the wayside if you’re looking for growth. Aurora, Canada Goose and Shopify are just a handful among many Canadian stocks that are growing revenue or earnings in the high double digits. Any one of them would be a worthy pick for a growth stock-focused portfolio.
Marijuana was legalized across Canada on October 17th, and a little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.
Besides making key partnerships with Facebook and Amazon, they’ve just made a game-changing deal with the Ontario government.
One grassroots Canadian company has already begun introducing this technology to the market – which is why legendary Canadian investor Iain Butler thinks they have a leg up on Amazon in this once-in-a-generation tech race.
This is the company we think you should strongly consider having in your portfolio if you want to position yourself wisely for the coming marijuana boom.
Fool contributor Andrew Button has no position in any of the stocks mentioned. David Gardner owns shares of Facebook. Tom Gardner owns shares of Facebook and Shopify. The Motley Fool owns shares of Facebook, Shopify, and Shopify. Shopify is a recommendation of Stock Advisor Canada.