The last few years have been pretty terrible for many stocks. And, of course, many suffered after huge downturns these companies went through. That’s why today we’re going to look at Canadian stocks showing resiliency. Those that climbed, crashed and burned, then rose from the ashes to where they are today.
So let’s get right into it.
Shopify
Shopify (TSX: SHOP) is right up there as one of the best and worst performers of the last few years. Shopify stock climbed to all-time highs of $228 (adjusted for the stock split) before falling sharply down to around $35 per share. This decline was partly driven by consumers looking to bring in their spending in the face of rising inflation and interest rates.
Yet Shopify stock made difficult choices to bring back growth as well as investors. The company cut stuff, sold its logistics business to Flexport for a stake in the company, and focused back on ecommerce. As a result, during the last earnings report, shares flew up once more.
Talk was talk, but that’s proving to be worth the discussion. During the last quarter, Shopify stock saw gross profit rise 36% year over year to $901 million, with a gross margin of 52.6% compared to 48.5% the year before. Further, gross merchandise volume (GMV) climbed 22% to $56.2 billion, with total revenue up 25% to $1.7 billion as well.
There were many new subscribers as well, with subscription solutions revenue climbing 29%, and monthly recurring revenue up 32% as well. Free cash flow also increased to $276 million, or 16%, marking yet another quarter of positive free cash flow.
As for the rest of 2023, the company looks like it’s going to end the year strong. Black Friday to Cyber Monday should bring in more investors and more sales for the company. Now, it expects full-year revenue growth in the mid-twenties, with fourth quarter free cash flow hitting the high teens. So look out for more growth from Shopify stock. Even with shares hitting 52-week highs, up 97% in the last year alone.
Cameco
Cameco (TSX: CCO) was also hit up in the last few years as a meme stock trade. CCO surged in share price as Reddit subchannel WallStreetBets touted the stock as the next to rise in share price. Along with uranium prices, Cameco stock surged. Only to fall once again as investors looked to take their earnings.
Yet again, Cameco stock has risen from the ashes. It’s one of the growth stocks on the TSX today continuing to defy the laws of physics. And that comes from major investment into nuclear power, to power forward the goal of net-zero greenhouse gas emissions around the world – more specifically in the United States, where nuclear power already provides the country with 20% of its power.
Cameco stock remains a top choice as the company is the world’s largest publicly traded uranium producer. And as the price of uranium continues to climb, Cameco stock is set to take a significant advantage. It continues to grow through partnerships and acquisitions as well, creating a massive opportunity for today’s investor.
So sure, shares are expensive. Cameco stock is now up 91% in the last year after all. Yet it still has a strong future for today’s investor. Especially as a growth market looks to be coming our way.
