The TSX 30 was unveiled in September, and it has become a who’s who of top growth stocks in Canada. However, there were some notable names that didn’t make the list, including the three stocks below.
Aurora CannabisĀ (TSX: ACB)(NYSE:ACB) is one of the larger omissions from the TSX 30. While the stock has soared significantly over the years, the reason that it wasn’t listed is that one of the criteria in being ranked is that its share price had to have been at least $0.50 on June 30, 2016. Aurora fell just a few cents short of this threshold. Otherwise, it would have been among to top stocks on the TSX 30.
Aurora has been one of the best-performing stocks over the past three years. Even though the company has been struggling in 2019, even at over $6 a share, it has produced returns of well over 1,000% in three years. The cannabis giant has done very well growing its sales, and it’s among the top pot stocks in Canada.
While it’s disappointing for Aurora investors to see the stock just fall short of making the TSX 30, that doesn’t take away from it being one of the best growth stocks on the TSX.
Canada Goose HoldingsĀ (TSX: GOOS)(NYSE: GOOS) is another high-growth stock that failed to make the TSX 30. Like Aurora, it failed to make the list due to a technicality rather than a sub-par performance.
Since Canada Goose went public in March of 2017, it hasn’t been three years that the company has been listed on the TSX. One of the requirements of the TSX 30 is for a stock to have been traded on the TSX or TSXV for at least three years.
It’s disappointing, as Canada Goose has long been one of the best growth stocks on the TSX. While this year it has struggled amid some troubling quarterly results, over the past two years its share price has more than doubled.
The company still has a lot of growth and many ways that it’s hoping to add to its top line, and so it wouldn’t be surprising if we see even stronger numbers ahead for Canada Goose.
DollaramaĀ (TSX: DOL) didn’t miss out on a technicality, unlike the other two stocks on this list; it simply failed to beat out the others on the TSX 30. During the three years leading up to June 30, 2019, Dollarama stock had risen 60%. And while that’s a solid number, it’s far below the 126% returns that the lowest-performing stock of the TSX 30 achieved.
Dollarama likely would have made the list if not for an abysmal performance in 2018 that led to a huge sell-off of the stock. With slowing same-store sales growth, and investors concerned about the company’s future growth, there are many shareholders hitting the sell button on the once-prized stock.
However, investors that have held the stock for three years are likely not disappointed with their overall returns, as Dollarama has still done a remarkable job over that period of time, and there’s still a lot of potential for the stock to continue climbing in value.
