After years of stock rallies, including the recovery rally after the initial pandemic sell-off, 2022 was quite discouraging for a lot of investors.
Not only did everything seem to become more expensive, but many stocks also lost value in 2022. The TSX, meanwhile, lost over 8% while the S&P 500 fell by more than 20% last year.
Despite the many companies struggling in this market and economic environment, some Canadian companies continue to grow their sales and earnings.
These stocks are some of the best to own in general, but especially when many other companies are struggling. Notably, in this environment, you have the opportunity to buy these stocks well off their highs. High-quality stocks with years of growth potential are some of the best investments you can make – if you can find them.
So if you’re looking for high-potential growth stocks to add to your portfolio today, here are three companies all expected to grow their businesses significantly over the next year.
A top e-commerce stock quickly growing its sales
Although it saw a significant sell-off in late 2021 and the first half of 2022, Shopify (TSX:SHOP) continues to grow its sales and operational strength. This performance makes it one of the top growth stocks you can buy.
In 2022, Shopify grew its sales by over 21% year over year. Going forward, in 2023 and 2024, sales are expected to grow by 18.6% and 23.9%, respectively.
It’s not just Shopify’s sales, which are now over $5.5 billion annually, that are growing, though. The e-commerce platform also continues to invest in and build its fulfilment network in North America. The improved operational efficiencies will help to immensely improve its financial performance. For certain, the improved logistics will attract more merchants and consumers.
So while Shopify stock trades at an attractive valuation, at just 8.3 times its forward sales, it’s one of the top growth stocks that you can buy today.
A top consumer discretionary stock
Another high-quality growth stock that’s been performing exceptionally well over the last year is Aritzia (TSX:ATZ). The consumer discretionary stock is outperforming even as inflation impacts consumer spending.
Aritzia is a highly popular, predominantly women’s fashion chain that’s been rapidly expanding across North America. The Canadian company was already well-established north of the border. And now, as it expands in the U.S. and continues to grow its store count, Aritzia has tremendous potential to continue growing its sales for years.
Since March 1, 2020, essentially the start of the pandemic, Aritzia has grown its annual sales from $980 million to more than $2 billion, an increase of more than 104% in just under three years.
Furthermore, in fiscal 2023, sales growth is expected to be over 40%, with another roughly 16% of revenue growth expected in fiscal 2024.
Therefore, while Aritzia trades more than 20% off its 52-week high, and at a forward price-to-earnings ratio of just 21.3 times, below its five-year average of 36 times, it’s one of the top growth stocks you can buy today.
An impressive healthcare tech stock with significant growth potential
WELL Health Technologies (TSX:WELL) is another high-quality growth stock to consider adding to your portfolio, especially while it’s still cheap.
The stock has already rallied by more than 40% year to date, yet still trades well undervalued after selling off for more than a year.
What’s so attractive about WELL is that it’s a high-quality tech stock with the potential to grow its sales rapidly. At the same time, though, it serves the healthcare industry, which helps to make its operations highly defensive.
So it’s no surprise that although the economy is facing significant headwinds, WELL is still expected to grow its sales in the coming years.
Fiscal 2023 sales growth is expected to be over 15%, with another 11% in revenue growth expected in 2024. Furthermore, WELL continues to improve and grow its profitability, another reason it’s such a high-quality growth stock to buy today.
WELL continues to trade at an attractive valuation and more than 60% below analysts’ average target price. This showing makes it one of the top growth stocks that investors can buy now.