Bond yields are rising, and what looks like a rotation toward value stocks is underway.
I think many investors have seen this as a long-time coming. However, I still think that high-quality, high-growth companies will continue to outperform over the long run.
In that regard, these three companies are ones I’d recommend investors keep on their radar right now. These three stocks remain among my top picks for all the right reasons.
Here we go.
Constellation Software
Those looking for long-term growth can’t do much better than Constellation Software (TSX: CSU). Indeed, this top TSX tech stock continues to make my list of top picks for a reason. Constellation is a best-in-class consolidator of a fragmented software industry. This sector has thousands of small-cap companies just looking to be acquired. And Constellation’s track record of picking the best of the bunch is impressive.
The capital appreciation growth Constellation has provided over the past decade is truly incredible. I think nothing’s changed with this company and see a bright future on the horizon for this consolidator.
As long as technological innovation is on, companies like Constellation will continue to do well. The company’s M&A track record spans more than 500 deals, and Constellation just keeps hitting home runs. Until that changes, I think this stock remains a top pick.
Shopify
Any list of top growth stocks would be incomplete without Shopify (TSX: SHOP)(NYSE:SHOP).
In recent years, Shopify has become the top stock foreign investors think about when they consider Canadian companies. And for good reason.
Shopify’s growth trajectory is one that’s undeniably impressive. Cathie Woods’s recent comments comparing Shopify to Amazon is just one opinion among many that this company can continue to grow at lightspeed over the long term.
Now, this stock has dipped materially from its all-time high. Today, investors can pick up shares of Shopify for a discount of approximately 25% from the stock’s peak. The company is still valued in the nosebleeds, but this is a considerable correction.
Accordingly, investors waiting on the sidelines patiently for an opportunity to pick up those desirable Shopify shares now have a great chance to do so at a better price.
Restaurant Brands
The restaurant space is one that undeniably got hit hard as a result of the pandemic. However, those optimists out there who believe we could be on the cusp of a generational growth surge may want to consider stocks like Restaurant Brands (TSX: QSR)(NYSE: QSR) today.
This quick-service restaurant chain harbours some of the best names in the fast-food space. The company’s three core banners are Tim Hortons (every Canadian’s favourite), Burger King, and Popeyes Louisiana Kitchen. These three brands are world class and have great growth trajectories in emerging markets such as Asia.
Additionally, this stock has proven to be a great growth option for investors over time. Since inception, Restaurant Brands’s performance is among the best in its field, and I think this company will continue this trajectory over the long haul.
