For investors seeking high long-term returns, growth stocks can be an excellent choice. These are generally shares of companies that have the potential to generate significant capital appreciation over a period of time.
However, to get the desired result, investors must choose stocks with strong fundamentals. This is essential for companies to show stock price appreciation, which is the main goal behind this type of investment.
Accordingly, when it comes to this stock category, my number one pick in the Canadian stock market is Shopify (TSX:SHOP).
Shopify helps its merchants tap into the global market
Shopify’s overall business model provides impressive growth potential for those thinking long term. The company’s technology enables small- and medium sized businesses to tap the global market. Indeed, in the world of e-commerce, Shopify is a leader in its niche.
That said, this is a company that’s not just sitting on its heels. Shopify has continued to make product enhancements to further its market share and positioning in key markets. One such innovation I’ve been keeping an eye on is the company’s launch of its POS Go hardware in Singapore, Italy, Belgium, Denmark, Italy and Spain.
Thus, its payment service is now present in 14 countries around the world, enabling its traders to tap into the international market.
To facilitate seamless product deliveries, this e-commerce company has introduced Shopify Shipping to merchants in these key markets. Additionally, it has also launched Shopify Markets Pro in the United States, providing early access to certain customers. If this pans out as expected, SMB merchants will soon have the ability to sell their products in more than 150 markets worldwide. That’s a compelling value proposition for any merchant.
Introduction of additional marketing channels
Another top product innovation worth looking at is Shopify Audiences. This marketing tool was launched to expose the merchants on Shopify’s platform to a wider audience. Essentially, using machine-learning, this tool will assist merchants in better targeting consumers who want their specific offerings.
The growth of artificial intelligence and machine learning technology is a key growth factor many investors are considering. In this regard, Shopify appears to be doing what it can to push innovation forward with its platform.
Various recent business developments introduced by Shopify have solidified its way to exponentiate its profits in the near future, and the success of its policies can be seen in its last quarter reports. Without a doubt, SHOP stock is my number one choice when it comes to investing in Canadian growth stocks.