Given where bond yields are right now, investors have reason to start looking once again at growth stocks. Indeed, the yield on the 10-year U.S. treasury note has dropped to 1.1% in recent days from a high of 1.75% a few weeks ago. For high-growth stocks, that’s a great thing.
However, finding the best growth stocks can be difficult. In this article, I’m going to highlight three of the best growth stocks Canada has to offer.
Let’s get to it.
Growth stocks: Spin Master
However, Spin Master is so much more than a simple toy manufacturer.
In fact, the company’s focus is on building out its IP and digitizing its offerings. The company’s omnichannel approach to bringing content to children is something I think provides a tremendous amount of value. Indeed, the company’s triple-digit growth rates in its digital gaming segment speak to how successful this strategy has been.
On the retail front, I expect we’ll see a resurgence of sales and profitability, as consumers load up on Christmas this year. Indeed, the coming quarters should be rock-solid for Spin Master, and I think the market isn’t pricing in enough excitement about how well this company can truly do.
Long-term investors seeking a company with tremendous upside can’t go wrong with Spin Master. It’s a company worth diving into.
One of the pre-eminent growth-by-acquisition plays in the software space is Constellation Software (TSX:CSU). This Canada-based conglomerate is simply one of the best among its peers. It’s a world-class company operating in a hyper-growth space, with tremendous long-term potential.
Looking at Constellation’s historical returns for investors, one can see the compounding value this strategy has provided. Indeed, I expect this trajectory to continue, given the vast opportunity for consolidation that remains in the software space. Until something drastic changes (which I don’t see happening), Constellation is a company poised to continue growing at its historical rate.
For long-term investors seeking a company with incredible cash flow growth potential, Constellation is it. This is simply one of the best names to own in Canada. And it’s expensive for a reason.
Indeed, this fast-food purveyor holds some of the highest-quality banners in the industry. The parent company of Tim Hortons, Burger King, and Popeyes Louisiana Kitchen has shown its growth potential in recent years. However, the pandemic has stunted the company’s otherwise stellar growth this past year.
That said, investors seeking an excellent pandemic reopening play have a top-notch pick in Restaurant Brands. I anticipate QSR stock could go on a very nice run once the dust settles. This is a stock that continues to be devalued relative to its growth potential and remains a top stock on my watch list right now.
Long-term investors seeking companies providing dynamic growth can’t go wrong with this one. The company’s defensive business model adds an extra layer of security to such a holding. This is a company every growth investor should check out 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.
Fool contributor Chris MacDonald has no position in any stocks mentioned in this article. The Motley Fool owns shares of and recommends Constellation Software and Spin Master Corp. The Motley Fool recommends Restaurant Brands International Inc.