Some investors think growth stocks have lost their mojo.
However, all hope is not lost. Rates remain near historical lows, and there are now some great deals in the growth space today.
In this market, I think the opportunities are very concentrated right now. However, I’ve hand-picked three stocks I think have the potential to outperform this year and beyond.
So, let’s get to it.
Cannabis stocks remain topics of discussion among growth investors right now. Indeed, hopes for U.S. legalization are spurring most of these discussions today.
In this environment, I think U.S.-based MSOs like Curaleaf Holdings (TSXV:CURA) will eventually emerge as the long-term winners in this sector.
Curaleaf’s already the largest seller cultivator of marijuana in the United States. The company has grown to this size organically and via acquisition. However, the company’s vertically integrated model from coast to coast in the U.S. is impressive. This model provides the company with what I view as a large moat in this sector.
Curaleaf’s latest results were impressive. The company posted revenue growth of more than 200% year over year. On a fundamentals basis, this cannabis stock is still trading at a better valuation than many of its Canadian peers. And it continues to expand, moving into Europe via its recent acquisition of Emmac Life Sciences.
U.S legalization may not happen tomorrow, but Curaleaf is well positioned to outperform in the near, medium, and long term. That’s why I like this stock.
The 10 Best Stocks to Buy This MonthClick here to learn more!
The company’s worked its way to becoming the largest company in Canada by market cap for a reason. And investors have recently begun flocking to this name once again following stellar earnings.
Shopify’s revenue growth rate of 110% year over year blew most analysts and investors away. That said, the company’s still trading at a significant discount to its all-time high today.
Concerns about the potential for slowing growth have hampered this stock of late. That said, I think the long-term outlook remains strong for this e-commerce behemoth.
Shopify’s long-term growth trajectory remains intact. On any dips, this looks like a buying opportunity today.
The last stock on this list (but definitely not the worst) is Spin Master (TSX:TOY).
This toy maker has seen rather incredible growth for a company operating in its segment.
Well, Spin Master has been undertaking a digitization move of late. The company’s digital gaming segment is absolutely taking off. This segment saw triple-digit growth year over year this past quarter and shows no signs of slowing. For investors looking for an old-world stock with new-world growth potential, Spin Master is it.
Like these top growth picks? Here are 10 more to consider right now:
Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.
Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.
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 Chris MacDonald has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify, Shopify, and Spin Master and recommends the following options: short January 2023 $1160 calls on Shopify and long January 2023 $1140 calls on Shopify.