The Motley Fool

3 Canadian Stocks that Beat the Market in 2019

2019 has been a great year for the Canadian markets. Up 18.7% year-to-date, the TSX is nearing all-time highs. Even if you held just TSX index funds this year, you’d have done quite well.

And yet with certain individual stocks, you could have done much better. As you’re about to see, there have been a handful of superstar stocks this year that have dramatically outperformed the TSX.

Delivering superior returns and–in some cases–high dividend income, these stocks have made investors extraordinarily happy in the year we’re about to say goodbye to.

The following are three such superstar stocks that out-performed in 2019.


Shopify Inc (TSX:SHOP)(NYSE:SHOP) has been one of the best-performing TSX stocks since its 2015 IPO. Up well over 1000% since that time, it has absolutely crushed the market.

What has driven this stock’s meteoric rise?

A combination of high revenue growth, intermittent profitability, and solid name recognition.

In its most recent quarter, Shopify grew its revenue by 45% year over year, driven by solid gains in merchant solutions. It’s not quite the stunning growth the company used to post, but it’s still quite fast.

Shopify could also be considered profitable by some metrics. Although it’s never posted a GAAP net profit, it has posted positive adjusted earnings in the past. The most recent quarter wasn’t one of them, but this company is much closer to profitability than other trendy tech stocks like Uber.

Finally, this stock simply has a very popular name that garners a lot of attention in the financial press, potentially contributing to its gains.

Lightspeed POS

Lightspeed POS Inc (TSX:LSPD) is another recent IPO that has done quite well since it went public.

Since its closing price of $18.9, it has shot up an incredible 78%. Its IPO was in March, meaning that impressive gain was produced in less than a year.

Lightspeed, like Shopify, is involved in payment processing. Unlike Shopify, however, LSPD has a big focus on brick and mortar sales, as opposed to e-commerce.

This could give Shopify an edge as an investment. E-commerce is taking a lot of customers from retail stores, and as a result is growing much faster.

However, Lightspeed’s growth in its most recent quarter actually accelerated, whereas Shopify’s growth has been slowing. It’s also worth mentioning that Lightspeed does provide an e-commerce platform in addition to its core brick and mortar point of sale system, so it’s not so black and white.


AltaGas Ltd (TSX:ALA) is a diversified energy company with investments in midstream, utilities and power. The company’s midstream business includes processing, storage and transportation.

Its utility business supplies natural gas to customers in D.C., Virginia, Maryland, Michigan and Alaska. Finally, its power business supplies electricity to customers in both the U.S. and Canada. Energy stocks have been performing fairly poorly over the past five years after oil collapsed in 2015.

AltaGas, however, has a diversified business that has been growing. With a focus on midstream and utilities, as well as LNG, it’s not as vulnerable to crude oil price swings as other energy companies are. As a result, it’s fared better than most other energy stocks.

This year, ALA has risen 42%. In addition to the market-beating gains it has delivered, the stock pays a dividend that yields 4.84% at current prices.

5 TSX Stocks for Building Wealth After 50

BRAND NEW! For a limited time, The Motley Fool Canada is giving away an urgent new investment report outlining our 5 favourite stocks for investors over 50.

So if you’re looking to get your finances on track and you’re in or near retirement – we’ve got you covered!

You’re invited. Simply click the link below to discover all 5 shares we’re expressly recommending for INVESTORS 50 and OVER. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a brief time only.

Click Here For Your Free Report!

Fool contributor Andrew Button has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. The Motley Fool owns shares of Lightspeed POS Inc. The Motley Fool recommends ALTAGAS LTD. and Uber Technologies. Shopify and AltaGas are recommendations of Stock Advisor Canada.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.