Benjamin Franklin once wrote on the birth of the constitution, “Everything seems to promise it will be durable; but, in this world, nothing is certain except death and taxes.” I’d like to offer one further certainty, and that’s the certainty of change. Even among the best Canadian stocks to buy right now.
This is especially true when it comes to looking at the market. With companies around the world constantly competing for better technology, further acquisitions, and other tangible and intangible ways to get ahead, it’s clear that change is inevitable. And it’s a part of the way the world continues to spin round.
So what might the top four companies be in 2031, a decade from now? I say might because we simply can’t know for certain. Things change, as I’ve said, but given the number of high-growth trends before us, we can still make some sort of prediction. So here are four I would consider for high growth in the next decade, and beyond.
Shopify
Shopify (TSX: SHOP)(NYSE:SHOP) is likely to continue being a catalyst of the e-commerce industry. Unless the company puts all its cash towards some hair-brained idea, it remains one of the best Canadian stocks to buy to become one of the largest companies by market capitalization in 2031.
Shopify has seen a trend for years now of year-over-year growth in the high double and often triple digits. Most recently it reported year-over-year revenue growth of 110%. That revenue was just shy of $1 billion for the first quarter alone. Shopify stock is edging toward reaching its competitors in the e-commerce space, expanding to fulfillment centres and payment methods. The goal, management says, is to create the easiest way for merchants to reach consumers. If they succeed, Shopify stock succeeds.
Shopify stock grew by 50% in the last year but has soared by 4,594% since its initial public offering (IPO). The key to cash flow for the years to come will be maintaining those subscriptions. As long as Shopify stock can stay on top of that, investors have nothing to worry about.
BlackBerry
Despite the rise and fall of BlackBerry (TSX: BB)(NYSE: BB) over not just the last few months but also the past decade, it’s still a top choice for the best Canadian stocks to buy. The company came onto the market and rose to all-time highs in the $100 range. Yet now BlackBerry stock trades at around $19 per share. And that’s great considering it was at half that price a few months ago.
But even with today’s short squeeze of BlackBerry stock, it’s still a strong investment moving forward. That’s thanks to its investment into the cybersecurity sector and its investment in the electric vehicle movement through its IVY platform and QNX software.
So although it still attempts to generate cash flow, this is a long-term bet. The cloud is the future, and BlackBerry stock is finding ways to make the cloud safe for companies and drivers alike. So any acquisitions and movement in the future really should be nothing but good news for investors.
Open Text
Speaking of the future of the cloud, Open Text (TSX: OTEX)(NASDAQ: OTEX) is another stock on my top Canadian stocks to buy. It’s one of the few companies that’s been around for decades in the tech sector, but it’s been making major partnerships that will last a lifetime. That’s because it offers cloud-based software security that others cannot even compare to.
Shares of the company are up 335% in the last decade, creating sustainable growth that continued even during the pandemic. The company continues to have plenty of cash on hand and has been using it to make acquisitions around the world. The tech industry will soon rebound, creating an opportunity to buy up this cheap stock at a price-to-book ratio of 3.4 as of writing.
Constellation Software
Finally, Constellation Software (TSX: CSU) is expensive, but for good reason. It’s been a multi-bagger over the last decade and a bit. The $37.5 billion company has seen shares grow 12,741% since coming on the market and 27% in the last year alone. True, it’s expensive — almost as expensive as Shopify stock. Again, it’s for good reason.
The diversified software stock has grown from its crushing M&A strategy. Management knows value when they see it and pay up. It’s this strategy investors can latch onto for decades, yet it’s also seeing a 10% correction amid broader growth and tech pullbacks. So this is just a great entry point for long-term investors looking for Canadian stocks to buy.
