If you are hunting for growth stocks that could multiply your wealth over the long term, consider buying the shares of Aritzia (TSX:ATZ), Ballard Power Systems (TSX:BLDP)(NASDAQ:BLDP), and Shopify (TSX:SHOP)(NYSE:SHOP). These Canadian corporations have multiple catalysts to fuel their growth and outperform the TSX in the long term. Let’s consider why these TSX stocks are buys at current levels.
Aritzia is a fashion brand that consistently delivers stellar growth. This multichannel retailer continues to benefit from its strong organic sales, profitable growth, and solid free cash flows. Meanwhile, its continued investments in product innovation and expansion, brand awareness, e-commerce, and geographic expansion continue to fuel its growth.
Despite a challenging operating environment and concerns over consumer spending, Aritzia delivered stellar growth in Q1. Strong demand, strength across all of its geographies and channels, and solid momentum in the U.S. led to a 65% jump in its top line.
Further, the company stated that demand remains strong, despite a challenging macro backdrop, which sets the stage for solid Q2 performance.
Aritzia is growing its footprint in the U.S., as the business continues to perform exceptionally well. Moreover, it plans to expand its product offering by 2025 by entering new categories like intimates and swim. Further, its acquisition of Reigning Champ accelerates its expansion into the men’s segment.
Looking ahead, Aritzia’s stellar revenue growth driven by solid demand, expense management, focus on reducing debt, boutique openings, and solid free cash flow generation positions it well to beat the TSX by a wide margin and multiply its shareholders’ wealth.
Ballard Power Systems
Ballard Power Systems manufactures PEM (proton exchange membrane) fuel cell products with wide application in heavy-duty motive, including bus, truck, marine, and rail.
Its two-pronged strategy, including the sale and service of power products and delivery of technology solutions, bodes well for growth. Further, the accelerated shift towards a zero-emission future supports its growth.
Notably, Ballard stock has dropped significantly and is trading near the 52-week low. The sharp decline in Ballard stock is due to margin headwinds from higher labour and shipping costs, lower selling prices, and investments in advanced manufacturing and production capacity expansion.
While Ballard’s margins could remain depressed in the near term, its revenues will likely remain strong. Further, its solid order book, strategic collaborations, plans to expand its global footprint, and investments in product and technology bode well for growth.
Due to the massive selling in tech stocks, investors should consider adding a few high-quality names from this space. I recommend Shopify stock for its solid competitive positioning, market share gains, and aggressive investments in fueling long-term growth.
Shopify stock has dropped massively from its peak and looks highly tempting at its current valuation, which is at a multi-year low.
Shopify’s growth is expected to accelerate in the coming quarters, as benefits from its investments have started to gain traction. Further, it faces easier comparisons in the second half of the year, which should support its growth.
Looking ahead, Shopify’s expansion of its fulfillment network, strengthening of POS offerings, new product launches, entry into geographies, the addition of new sales and marketing channels, and new merchant solutions augur well for growth.