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The 3 Best Canadian Growth Stocks to Buy for 2021

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Most growth stocks delivered exceptional returns in 2020, as investors flocked to equities after the pandemic-led selloff. While growth stocks are looking expensive at the current levels, I believe the rally in a few stocks could continue, and they could again deliver stellar returns in 2021. 


Air cargo companies performed exceptionally well in 2020, thanks to the increased e-commerce and healthcare-related volumes. Meanwhile, the grounding of passenger airlines further boosted the demand for international cargo and drove the financials of the air cargo companies, including Cargojet (TSX:CJT)

Cargojet reported 39% growth in its top line during the first three quarters of 2020. Meanwhile, its gross margin more than doubled during the same period. Thanks to its stellar financial performance, Cargojet stock jumped 109% in 2020. 

I believe the demand for air cargo is likely to sustain in 2021, thus pushing Cargojet stock higher. Cargojet’s coast-to-coast presence and next-day delivery capabilities position it well to increase its market share. Meanwhile, the surge in e-commerce volumes is further likely to drive Cargojet’s financials. Also, an expected recovery in international trade and a large-scale vaccine-distribution program should further drive the sales and profitability of air cargo companies in 2021. 

Cargojet is also likely to benefit from its long-term contracts with customers that guarantee minimum revenue. The company has cost pass-through provisions, which is encouraging. Notably, Cargojet stock has retraced a bit from its peak, which provides a good entry point for investors at the current levels. 

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E-commerce sales are at a record high, and it could only accelerate from here, reflecting increased contribution in total global retail sales over the next decade. As businesses rush online, Shopify (TSX:SHOP)(NYSE:SHOP) remains well positioned to benefit from the structural shift and deliver impressive growth in the coming years. 

Shopify’s strong shipping and fulfillment services, +100 marketing and sales channels, omnichannel platform, and analytics are likely to drive traffic and support its revenues and margins. The company’s revenue and gross merchandise volume are expected to trend higher amid increased demand. Meanwhile, its merchant base is expected to rise amid the rapid adoption of online selling models. 

Shopify stock had risen by 178% in 2020, reflecting heightened demand for its platform. As small and independent brands continue to migrate online, Shopify could continue to make its shareholders rich in 2021.  


Docebo (TSX:DCBO)(NASDAQ:DCBO) stock surged over 387% in 2020, as the pandemic led to an increase in demand for its learning management platform. Docebo’s leading performance indicators look solid with strong recurring revenue growth. Meanwhile, its customer base and deal value are growing at a healthy pace.  

As of September 30, Docebo reported a 55% growth in its annual recurring revenues. Meanwhile, the average contract value rose by about 25%. The company’s customer base stood at 2,025, up 24.1% from the year-ago period. 

I believe the demand for Docebo’s learning management platform is likely to sustain, even in the post-pandemic world. Meanwhile, its multi-year contracts, large addressable market, accretive acquisitions, and product expansion provide a solid base for growth. 

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends CARGOJET INC., Shopify, and Shopify.

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