The Canadian stock market has been on a downward trend for the past few years, but there are signs that a bull market is on the horizon. The economy has been slowly but surely recovering from the COVID-19 pandemic, which of course is great news for stock market investors. As profits increase, stocks will soon follow.
While interest rates have been rising, this is another good thing for the stock market in the long run. Rising interest rates create bonds that are more attractive, taking pressure off the rapidly rising market over the last few years. This has made valuations more attractive, with tech stocks especially being poised for major growth.
With that in mind, let’s look at three growth stocks that could thrive as the bull market arrives.
Shopify stock
Shopify (TSX:SHOP) stock has been leading the markets, especially among the tech sector this year. It has been on a tear, falling after pandemic climbs and now up 80% in the last year. Shopify stock should continue to do well in a bull market, as the company has been growing rapidly for years.
Further, e-commerce as a whole should continue to explode, with sales expected to reach $7.4 trillion by 2025. This should definitely help along Shopify stock as it continues to focus on the ecommerce market after selling its logistics business. With renewed focus on enterprise-level clients, there should certainly be more growth coming the company’s way.
So while financials need some work in the short term, long term Shopify stock has proven to be a powerhouse of innovation, with a large group of dedicated shareholders. With debt under control and growth in the near future, it’s likely Shopify stock will continue to be one of the growth stocks to watch in a bull market.
BCE
BCE (TSX:BCE) stock is another top company to consider in a bull market. The telecommunication company was growing steadily; however, it started to drop after the merger of its competitors. This makes it a great time to consider BCE stock, as it has been a strong growth stock over the last few years.
BCE stock is now down 10% in the last year since merger talks began, even though it holds the largest market share and continues to expand its 5G network. With global telecommunication revenue expected to hit $2.1 trillion by 2025, BCE stock stands to be a huge winner. And that should certainly come into play during a bull market.
With a long history of growth and adapting to a changing market, as well as a larger than normal 6.7% dividend yield, it’s a great time to also consider BCE stock. Especially while it trades at just 2.1 times sales, and 9.2 times enterprise value over earnings before interest and taxes.
WELL Health
Finally, WELL Health Technologies (TSX:WELL) is an excellent choice among growth stocks, especially after the large fall in pandemic and tech stocks over the last few years. WELL Health stock soared to incredible heights, only to fall back. Even though the company continued to create record-breaking results.
The telehealth, virtual care, and medical imaging company continues to grow both organically, and through acquisitions, becoming the largest outpatient clinic in Canada. It has since moved into the United States, but could quickly become a global powerhouse.
Global healthcare spending reached $10.5 trillion in 2022, and should reach $17.7 trillion by 2028, creating a massive opportunity for WELL Health stock. Especially in the tech sector. Shares are currently half the consensus price estimate, leading the way to far more growth in the future. So with shares up 35% in the last year, more could certainly be coming.
