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3 Top Growth Stocks to Buy in July

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Growth stocks are the go-to options long-term investors continue to seek out. After all, interest rates continue to hover around historic lows. And the economic reopening thesis with the economy coming out of this pandemic remains strong.

Accordingly, these three growth stocks are among the best long-term picks for investors looking at this space today.

Let’s discuss.

Growth stocks: Restaurant Brands

One of the most under-appreciated growth stocks on the TSX right now is Restaurant Brands International (TSX:QSR)(NYSE:QSR).

Indeed, this fast-food purveyor has continued to be among my top picks, for good reason.

The conglomerate’s world-class banners include helices of Tim Hortons, Burger King, and Popeyes Louisiana Kitchen. These brands have tremendous growth potential domestically and abroad, with a significant amount of untapped potential in markets such as China.

Additionally, as the pandemic unwinds, I expect we’ll see a resurgence in sales at Restaurant Brands’ underperforming Tim Hortons’ banner. This business unit will be the key focal point of investors in the quarters to come. And if the company’s revitalization efforts prove fruitful, investors in Restaurant Brands’ stock could be getting quite the deal at these levels.

Spin Master

A toymaker by trade, Spin Master (TSX:TOY) is among the group of growth stocks I think is under-appreciated today.

Indeed, this company’s catalogue of products and IP is impressive. Indeed, Spin Master’s move to digitize a significant portion of its offerings has worked well for the company. Spin Master’s digital gaming segment is the growth driver many investors are finally paying attention to. Indeed, any company boasting triple-digit year-over-year growth in any segment is worth a look.

Spin Master has been able to achieve this sky-high growth rate via an extremely successful monetization strategy around the company’s core IP. I think as additional digitization opportunities arise, Spin Master is well-positioned to take advantage of these and boost profits for shareholders.

Accordingly, this is a long-term pick I think carries tremendous upside today. Long-term investors looking for growth stocks with tremendous upside can’t go wrong with Spin Master right now.

Shopify

Indeed, any list of growth stocks would be incomplete without talking about Shopify (TSX:SHOP)(NYSE:SHOP).

After all, Shopify has retained the title of Canada’s most valuable company by market capitalization for a reason. This company’s e-commerce platform has become a necessity for many SMBs to survive during the pandemic. And as we move to the other side of this pandemic, it appears Shopify’s customer base is “stickier” than many previously thought.

Indeed, the ability of Shopify to continue to generate world-class revenue growth is the key question with this stock. That said, I think the company has proven its ability to do just that over the past six years. Barring any sort of substantial economic slowdown, Shopify stock appears well-positioned to continue its trajectory higher.

Currently, SHOP stock is trading near its all-time high for a reason. I expect this company to break through to new all-time highs shortly, should positive market conditions prevail.

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 stocks mentioned in this article. The Motley Fool owns shares of and recommends Shopify and Spin Master Corp. The Motley Fool recommends Restaurant Brands International Inc. and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.

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