If you’re hoping to generate life-changing amounts of wealth, then I would suggest turning to growth stocks. Generally, these stocks have a much lower barrier of entry compared to other wealth-generation methods. However, investing in growth stocks can be very tricky. These assets tend to be very volatile, and it can be tough to pick out the winners from the losers. In this article, I’ll discuss two of the best growth stocks to buy right now.
This is one of my favourite growth stocks
Shopify (TSX:SHOP) is the first growth stock that I think investors should consider buying today. This company is a leader in the global e-commerce space. What separates Shopify from its peers, in my opinion, is the breadth of its services. Shopify has the ability to cater to everyone from the first-time entrepreneur to large-cap enterprises.
Shopify also has a hand in many other industries outside of the ecommerce space. Although these continue to be much, much smaller segments of its business, it’ll be very interesting to see how they develop over the years.
For example, Shopify’s esports arm is continuing to increase its penetration of the global e-sports space. Shopify Rebellion is slated to enter the League of Legends Championship Series this year after taking over Team SoloMid’s spot in the league. That’s one area I’ll be watching Shopify very closely over the coming years.
Over the past year, Shopify stock has been on fire. It has gained more than 100% since the start of 2023. Although it still sits far below its all-time highs, I believe Shopify could continue to reward shareholders for years to come. I don’t think it’ll be smooth sailing the whole way through, but I think it’s a journey that growth investors should embark on nonetheless.
An underappreciated stock
The second growth stock that Canadians should consider picking up right now is Alimentation Couche-Tard (TSX:ATD). This company has quietly become a very steady compounder of growth, but many investors continue to keep it on the sidelines of their portfolio.
For those who aren’t aware, Alimentation Couche-Tard operates convenience stores. As of this writing, the company operates more than 14,000 locations across 25 countries and territories. Alimentation Couche-Tard also operates under several banners, which Canadians may not have known. This includes On the Run, Circle K, Dairy Mart, and many more.
Alimentation Couche-Tard stock was a major winner last year, gaining about 27%. Over the past five years, the stock has gained more than 120%. Those are gains that leave the TSX in the dust. In addition to its strong capital appreciation, Alimentation Couche-Tard has done a great job of growing its dividend distribution. Since 2013, it has increased its dividend ten-fold, or by a compound annual growth rate of 27%.
Alimentation Couche-Tard may not operate the most exciting business; however, there’s no arguing that it’s been very successful over the years. This is a stock that I think Canadian growth investors should stop sleeping on.