2 Stocks That Pass the Research Test

Loblaw stock and Shopify stock are two top TSX stocks that have been outperforming the market this year and pass the research test as stocks to buy today.

| More on:
edit Businessman using calculator next to laptop

Image source: Getty Images.

The S&P/TSX Composite Index has been performing better and better this year with the ongoing vaccination, relatively stable economic growth, a revival in demand, and overall improvements in the operating environment.

Some of the top TSX stocks continue to outperform the market and boost investor confidence, driving the growth of the overall market. After conducting thorough research on the top stocks contributing to the upward trend in the market, I have identified a few companies that have been some of the most impressive performers on the stock market.

Today, I will discuss two Canadian growth stocks that could be ideal assets for you to consider adding to your portfolio today to enjoy outsized returns in the coming years.


Loblaw Companies (TSX:L) stock is trading for almost $87 per share at writing, and its valuation is the highest that it has been for the stock. At its current valuation, Loblaw stock is up by 36.41% on a year-to-date basis. The food and drug retailer continues to enjoy strong performances, as the demand for online grocery delivery and pick-up services managed to offset the losses caused by reduced foot traffic.

The ongoing strength in its performance, growing scale, and a larger presence for its online segment position the company well to continue delivering superior returns to its shareholders. Despite being at its all-time high levels, Loblaw could be a bargain for you to consider at its current share price.

It boasts a forward price-to-earnings multiple of 15.84, proving that the stock still has plenty of potential to deliver growth.


Shopify (TSX:SHOP)(NYSE:SHOP) stock is an asset that has already been making waves since it became a publicly traded company on the TSX. The stock boasts a history of consistently beating the broader markets by a wide margin. Shopify stock is trading for $1,881 per share at writing, and it is up by 34.76% on a year-to-date basis.

While the stock might not be delivering multi-bagger returns to its shareholders this year, Shopify is likely to continue its upward trend throughout 2021.

The stock saw explosive growth with the onset of the COVID-19 pandemic. Higher demand for e-commerce businesses in 2020 boosted the company’s revenues. Despite the easing of pandemic-fueled restrictions, there is a strong demand for the services that Shopify offers to enable e-commerce businesses.

Additionally, Shopify continues to grow its fulfillment network, expand its sales and marketing channels, and establish a greater global presence. Even at such expensive prices, Shopify stock is likely to continue delivering substantial shareholder returns for a long time.

Foolish takeaway

Several of the top stocks trading on the TSX have delivered impressive shareholder returns throughout 2021, despite the challenges presented by the ongoing global health crisis. Most publicly traded companies seem to have realized their growth potential or come close to it. However, there still are some of the top names that seem like they have a lot more room to run to greater heights.

Adding shares of Loblaw stock and Shopify stock to your portfolio could help you realize even greater returns at the share prices for both companies 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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Shopify. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.

More on Dividend Stocks

Dividend Stocks

10 Years From Now, You’ll Be Glad You Bought These Magnificent TSX Dividend Stocks

The TSX is lucrative to buy these magnificent dividend stocks in bulk and be proud of this decision 10 years…

Read more »

calculate and analyze stock
Dividend Stocks

4 Fabulous Dividend Stocks to Buy in July

Are you looking for long-term income? These four dividend stocks should not only provide you with value in July but…

Read more »

financial freedom sign
Dividend Stocks

5 Steps to Financial Freedom for Canadian Millennials

Follow these steps and nothing can stop Canadian millennials from achieving their early retirement dreams.

Read more »

Investor wonders if it's safe to buy stocks now
Dividend Stocks

We’re Only Getting Older: A Top TSX Stock That Benefits From an Aging Population

For a bet on the aging population, consider this small-cap stock with growth potential.

Read more »

Growing plant shoots on coins
Dividend Stocks

Yield Today, Growth Tomorrow: 3 Stocks to Keep Building Your Wealth

For investors seeking yield today and growth tomorrow, these top Canadian dividend stocks are certainly worth considering right now.

Read more »

Payday ringed on a calendar
Dividend Stocks

This 10.72% Dividend Stock Pays Cash Every Month

This dividend stock remains a consistent, defensive dividend producer that will give up over 10% in income each and every…

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

TFSA Investors: 2 Standout Domestic Stocks With 7% Yields

These top dividend-growth stocks look oversold.

Read more »

Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Despite their recent declines, the long-term growth outlook of these two top dividend stocks remains strong, which could help their…

Read more »