Growth investors have had a rough time thus far in 2022. Despite a recent rally among many growth-oriented tech stocks, there’s not a lot to like about the outlook for most growth stocks. Rising inflation, geopolitical uncertainties, and an aggressive interest rate-hiking program from central banks does not bode well for this sector, generally speaking.
That said, there are some growth stocks worth considering right now. As it happens, Canadian-listed companies tend to be overlooked by the market. Here are three such companies I think represent interesting bets for aggressive growth investors right now.
Top growth stocks: Constellation Software
Canadian tech company Constellation Software (TSX: CSU) has been one of the best-performing growth stocks over the past few years. Constellation Software has done this by focusing on well-timed acquisitions. A growth-by-acquisition play, Constellation Software is one of the best in this realm overall.
One of the latest acquisitions deals investors are focused on is that of Allscripts Healthcare Solutions. This deal, worth US$700 million, provides for exposure to the high-growth medical records industry. One of Constellation’s subsidiaries is behind this deal. However, I like how the deal is structured, with some contingent consideration based on performance, upon the closing of this transaction.
The company has made hundreds of acquisitions over its lifetime, which has helped it to grow over the long term. Until Constellation’s deal flow slows, this is a stock I think has the potential to continue to grow in the decades to come.
Spin Master
Popular children’s entertainment company Spin Master (TSX: TOY) is another great option for those who are looking to invest in growth stocks. Spin Master recently released its financial data for the fourth quarter as well as for the year-end. This company managed to post impressive results, posting record profitability and revenue.
Revenue for the fourth quarter stood at US$620.5 million as compared to US$490.6 million a year prior. This translates into a massive 26.5% jump. Overall, the growth trajectory of Spin Master remains robust, supporting this company’s valuation.
From a forward-looking perspective, there’s also a lot to like. Spin Master is planning to launch a series of toys, games, and other activities this year that will inspire children and their families alike. The 2022 portfolio will include various innovations, expansion of its evergreen brands, etc., that will boost its sales in the future.
Restaurants Brands
Restaurants Brands (TSX: QSR)(NYSE: QSR) is one of the leading multinational fast-food chains in the world. It was formed as a combination between American fast-food chain Burger King and Canadian coffee and restaurant chain Tim Hortons.
The company made a comeback, as global economies have bounced back successfully as the public health crisis has receded. Restaurant Brands is also planning to expand its businesses in other big markets, such as India.
Moreover, the company’s focus on delivery via its digital platform has also been responsible for much of the growth Restaurant Brands has been seeing lately. Over time, I expect this growth profile to continue, making the company’s current valuation multiple look attractive.
Those with a long-term investing time horizon can’t go wrong with any of these companies. Indeed, a well-diversified portfolio of stocks including these three names ought to do well. Accordingly, for those looking for reasonably priced growth, these are three great options to consider right now.
