It’s no secret that 2021 has been a rough year for growth investors. In times like these, it’s a good idea to hold through the downturn and keep investing. Eventually you’ll make it to the other side. However, there are some companies that haven’t experienced similar declines in value. Some growth stocks have been thriving this year.
In this article, I will discuss three resilient growth stocks to add to your portfolio. These companies may provide some much-needed stability while giving you tremendous upside.
Consumer loans have increased since the pandemic
Because of the pandemic, many Canadians have been unable to work. This means that many people have needed to find another way to get cash. Banks have generally been very hesitant to lend money to riskier individuals amid fears of another meltdown like we saw in 2008. Fortunately, companies like goeasy (TSX:GSY) exist. Through its two business segments, this company offers high-interest loans to subprime borrowers and sells furniture and other home goods on a rent-to-own basis.
Year to date, goeasy stock has skyrocketed more than 50%, outpacing not only the most popular growth stocks, but also the broader market. By comparison, the S&P/TSX Composite Index is up 11% for the year, whereas companies like Brookfield Renewable Partners and Docebo are down 14% and 20%, respectively. Goeasy is also a top dividend company, having increased its distribution by more than 600% over the past seven years. There’s a lot to like about this company and it seems like this is just the beginning.
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A promising growth stock in a top industry
There’s no doubt that online shopping has been massive over the past year. Although that doesn’t encompass all that Nuvei (TSX:NVEI) has to offer, it has helped the company’s stock stay afloat over the year. Nuvei held its Initial Public Offering (IPO) late last year and broke headlines when it closed as the largest tech IPO in Canadian history. This means that the company managed to raise more money on its opening day than companies like Shopify and Lightspeed.
As mentioned previously, Nuvei stock has not succumbed to the recent downturn experienced by its tech peers. Year to date, the company is trading 20% higher, bringing the company to a market cap of just under $12 billion. It’s only a matter of time before large institutional investors take note and begin adding this stock into their holdings. We’ve seen that happen with Shopify and Lightspeed as recently as last year. Keep an eye out for Nuvei to attract massive attention in the near future.
Slow and steady wins the race
One of the most reliable growth stocks over the past decade has continued to please investors. Constellation Software (TSX:CSU) is an acquirer of small-, medium-, and large-sized vertical market software companies. Once integrated into Constellation’s network, the newly acquired businesses are provided the coaching and resources required to elevate them into elite companies. This strategy has worked for Constellation for more than two decades.
Since the start of the year, Constellation Software stock has increased 7%. While not as remarkable as goeasy and Nuvei, it does show the Constellation’s steady growth has been able to continue. Since its IPO, Constellation Software stock has been able to turn an investment of $10,000 to more than $800,000.
The company’s management team is still highly dedicated to providing excellent returns, so this is a stock you should really consider for your portfolio.
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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 Jed Lloren owns shares of Brookfield Renewable Partners, Docebo Inc., and Shopify. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Constellation Software, Shopify, and Shopify. The Motley Fool owns shares of Docebo Inc. and Lightspeed POS Inc and recommends the following options: short January 2023 $1160 calls on Shopify and long January 2023 $1140 calls on Shopify.