Canada’s Hottest Stocks in August: My Top 3 Picks for Explosive Growth

Are you interested finding stocks that could have explosive growth? Here are my top three picks!

| More on:
potted green plant grows up in arrow shape

Image source: Getty Images

With the end of August just around the corner, it’s a good idea to look ahead at a few stocks that investors should consider adding to their portfolio before we hit September. In my opinion, growth stocks are always interesting as their long-term potential is unrivalled. In this article, I’ll discuss three top picks for explosive growth.

This is my favourite Canadian growth stock

When it comes to TSX growth stocks, Shopify (TSX:SHOP) always appears at the top of my list. Very few Canadian companies have managed to impact the global economy as much as Shopify has. This company offers a platform that merchants of all sizes can use to operate online stores. What separates Shopify from its peers, in my opinion, is the fact that it can cater to everyone from the first-time entrepreneur to large-cap enterprises.

Over the past month, Shopify stock has stumbled, falling about 17%. However, investors shouldn’t focus on the short term with a company like this. Looking out at the entire year so far, we can see that Shopify stock has gained nearly 48%. I believe the company still has bright days ahead, and its financials seem to support that. In its most recent earnings presentation, Shopify reported US$.17 billion in quarterly revenue. That represents a year-over-year increase of 31%.

A company with massive potential

WELL Health Technologies (TSX:WELL) is another company that investors should consider holding in their portfolio today. If you’re not familiar with this company, think of it as operating two distinct business segments. That includes its physical and online services. In terms of physical services, the company operates 181 clinics. Regarding online services, WELL Health supports more than 3,800 clinics on its platform, offers a number of telehealth services, and even operates an online marketplace.

WELL Health stock has not done very well over the past month, dropping about 8%. However, with the telehealth space still finding its footing, I think investors are poised to see massive gains in the future. Over the past five years, this stock has gained 660%. If WELL Health can continue to expand as it’s shown it can in the past, then I could see its stock continue growing for years to come.

One of the first companies I wrote about

It’s been about three years since I started writing for The Motley Fool. I’ve thoroughly enjoyed sharing my knowledge and research with our readers and helping them build towards financial independence. Sometimes, it’s a good idea to look back and see how some stocks I’ve covered have done since I first mentioned them. goeasy (TSX:GSY) is one that I’ve enjoyed following over the years.

When I covered this company three years ago, I mentioned that the environment was perfect for goeasy to succeed. It turns out, so far, that my prediction was correct. Since that article was published, goeasy stock has gained 135%. That represents a compound annual growth rate of 33%. In addition to that outstanding growth, goeasy continues to distribute a remarkable dividend that also has a growth rate of about 30% over the past nine years.

In August, the stock only gained about 2%, but I believe investors could see much more in returns over the coming years.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Jed Lloren has positions in Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.

More on Investing

potted green plant grows up in arrow shape

2 Growth Stocks to Buy With $1,000 Right Now

Shopify (TSX:SHOP) stock is just one growth stock to buy after last week's market plunge!

Read more »

Stocks for Beginners

WSP Stock at 52-Week Highs, But More to Come

WSP (TSX:WSP) stock continues to surge past 52-week highs, but there could certainly be more to come for this great…

Read more »

tsx today
Tech Stocks

TSX Today: What to Watch for in Stocks on Wednesday, September 27

An overnight bullish movement in oil and gas prices could lift TSX energy stocks at the open today.

Read more »

TFSA and coins
Dividend Stocks

2023 TFSA Contribution Time: 2 Dividend Stocks to Buy With $6,500

Are you interested in using some of your 2023 TFSA contribution room? Here are two dividend stocks to buy with…

Read more »

money cash dividends
Dividend Stocks

2 Stocks Under $100 You Can Buy and Hold Forever

While many stocks continue to trade cheaply, here are two of the best in Canada to buy today and hold…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

Retirees: 2 High-Yield Dividend Stocks to Buy for Passive Income

Given their solid underlying businesses and high dividend yields, these two dividend stocks are an excellent buy for retirees.

Read more »

Early retirement handwritten in a note
Dividend Stocks

2 TSX Dividend Stocks to Buy Today to Help You Retire Early

Buying these two reliable TSX dividend stocks today can help you retire early if you hold them for the long…

Read more »

Doctor talking to a patient in the corridor of a hospital.
Dividend Stocks

Is Northwest Healthcare Stock Oversold?

Northwest Healthcare stock has plummeted 41% so far this year on concerns over its financial health as interest rates shot…

Read more »