2 of the Best Growth Gems on the TSX to Buy Now

Here’s why Restaurant Brands (TSX:QSR)(NYSE:QSR) and Shopify Inc. (TSX:SHOP)(NYSE:SHOP) continue to make my top picks list.

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Growth stocks have fallen out of favour a bit in today’s market. These aren’t as hot as they once were, with rising yields and commodity prices taking away the lustre of this investment genre.

That said, for long-term growth investors, this may be the buying opportunity we’ve been waiting for.

These two growth stocks are ones I think have been unfairly discounted by the market today. Indeed, I think long-term investors would be well served by considering these stocks in any market. Dips are the perfect time to buy these long-term gems.

Restaurant Brands

The restaurant sector as a whole has suffered massive losses during this pandemic. However, there will be an end to this pandemic. And some seem to think it’s sooner rather than later. For those optimists looking through this pandemic to the other side, stocks like Restaurant Brands International (TSX:QSR)(NYSE:QSR) could really outperform.

This conglomerate of fast-food chains holds some of the best names in the business. Among these, Popeyes Louisiana Kitchen, Burger King, and Tim Hortons can all be bought via ownership in QSR stock.

Indeed, these brands are world class. And there remains lots of growth opportunities internationally to open up new locations. However, the question remains — how soon will we really be able to go back to normal?

The pandemic has continued to affect Restaurant Brands’s earnings and will continue to do so until we see the pandemic under control. There’s hope that at least in the U.S. this pandemic is nearing its end. The hope is that Canada and the rest of the world will follow suit shortly.

Indeed, I think Restaurant Brands is poised for some breakout quarters on the horizon. Indeed, this is a growth investor’s dream stock. For those looking for a great rebound play, Restaurant Brands should get a hard look today.

Shopify

A discussion of Canadian growth stocks is incomplete without Shopify (TSX:SHOP)(NYSE:SHOP). And I’m not the only one who thinks so.

Cathie Woods recently called Shopify the next Amazon. That’s a bold statement and one that caught the attention of investors everywhere. Growth investors who have held onto Shopify stock for years may view this as a validation of what they knew all along. Those sitting on the fence may be enticed by these comments to jump in.

Regardless, I think Ms. Woods is onto something when it comes to Shopify. The company’s high margins and innovative e-commerce business model do make it Amazonesque. Accordingly, there’s no doubt this is one of the highest-quality Canadian growth stocks we’ve seen in a long time.

Shopify has seen continued acceleration of its growth trajectory throughout the pandemic. While some believe this growth trajectory will slow (and it likely will), I think a lot of that sentiment is already priced into Shopify stock today.

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.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Chris MacDonald has no position in any of the stocks mentioned. David Gardner owns shares of Amazon. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Amazon, Shopify, and Shopify. The Motley Fool recommends RESTAURANT BRANDS INTERNATIONAL INC and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.

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