2 Stocks You Should Hold in Your Portfolio Today

Which two companies should be in every Canadian investor’s portfolio?

The Canadian stock market is well known for the plethora of dividend-paying companies found in these exchanges. However, when it comes to growth stocks, the Canadian market does not seem to have as many attractive opportunities compared to its peer exchanges in the United States. Luckily, there are companies that present high-growth opportunities. In this article, I will discuss two companies that Canadians should consider for their portfolio.

Jump on this undeniable secular trend

Of all the hot industries found in the public markets today, the one that captures my attention the most is e-commerce. I believe we are in the middle of an incredible shift from traditional shopping (e.g., brick and mortar) to a more online-focused way of doing things. Because of this, Shopify (TSX: SHOP)(NYSE:SHOP) should land a spot in every Canadian’s portfolio.

I think of the company as being in a similar situation as Apple, back when smartphones were starting to hit the market. In North America, consumers have been exposed to products from BlackBerry, Apple, and Samsung since the mid-2000s. However, it was not until much later that smartphones completely dominated the mobile phone landscape. As a result, Apple stock had an incredible growth runway as consumers continued to shift towards these products.

Likewise, e-commerce is not exactly new. Consumers have been using Amazon and buying things online for years. However, the overall penetration of this industry is still so small. In Canada, e-commerce accounted for 11.4% of all retail sales in April 2020. This was the highest proportion ever recorded in the country, yet it pales in comparison to other areas of the world. I believe we will continue to see a lot of growth within our own country and others that also have low penetration rates moving forward.

An unexpected growth stock

When it comes to choosing growth companies, investors usually look at tech or healthcare companies. However, there are some companies that appear to be hiding in plain sight. I believe this is the case with Canadian Pacific Railway (TSX: CP)(NYSE: CP).

Like Shopify, Canadian Pacific is a component of the S&P/TSX 60. This indicates that the company is recognized as being a leader within the Canadian market. It also implies that it is already a large and established company. However, I believe the developments that have been announced by Canadian Pacific this year represent a tremendous opportunity.

The company has announced the acquisition of multiple railways this year, showing investors that Canadian Pacific is still looking to expand its reach. The most impressive acquisition, in my opinion, was the addition of the Central Maine & Quebec railway. This allows the company to make a return to the Atlantic region. Canadian Pacific’s president and CEO Keith Creel believes this poses a generational growth opportunity for the company.

Foolish takeaway

Both Shopify and Canadian Pacific have given investors remarkable returns in the past. However, the tailwinds that are present in these companies are too strong to ignore. I believe both companies have a lot of growth ahead of them.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Jed Lloren owns shares of Apple and Shopify. David Gardner owns shares of Amazon and Apple. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Amazon, Apple, Shopify, and Shopify. The Motley Fool recommends BlackBerry and BlackBerry and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.

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