This year has brought many high-growth stocks back into focus for investors. The number of soaring stocks we’re seeing proliferate is impressive. Indeed, with so many stocks trading at or near all-time highs, it’s an exciting time for many investors who may have never seen their portfolio values this high.
However, with soaring valuations also comes heightened risk. The two stocks I’ve listed here can certainly be viewed as somewhat higher risk than in the past due to their valuation increases.
That said, these two companies have surged for a reason. Fundamentals are driving the story with these names, making these two soaring stocks with strong investment theses to consider right now.
With that said, let’s dive in!
Shopify
Shopify (TSX:SHOP) stands as a leading cloud-based e-commerce platform tailored for small- and medium-sized businesses. It caters to diverse business facets, including mobile storefronts, sales channel management across the web, social media, marketplaces, and pop-up shops. It has its headquarters located in Canada and operates in countries like Ireland, the United States, and Singapore.
In 2022, the stock witnessed various challenges but has since bounced back. Indeed, the stock’s more than doubling last year speaks to its upside potential in a lower interest rate and higher-growth environment.
Considering the rapid growth of the e-commerce market, Shopify holds significant potential presenting the possibility of not only reaching but also exceeding previous highs. This is a top growth stock investors may want to consider on dips moving forward.
Restaurant Brands
Restaurant Brands International (TSX:QSR) is amongst the largest quick-service restaurant companies in the world. It operates and owns a franchise model under some of the biggest brands, such as Burger King, Tim Hortons, Firehouse Subs, and Popeyes.
Although it is a Canada-based company, Restaurant Brands has a presence across the world. Restaurant Brands’s most popular Canadian banner is Tim Hortons, and the company’s presence in Canada is notable. That said, this is an international company expanding fast in high-growth markets in Asia. Thus, there’s a strong growth component to owning this stock over the long term.
Additionally, Restaurant Brands pays out a solid dividend yield of approximately 2.8% at the time of writing. This yield complements a reasonable valuation and strong fundamental growth drivers over the long term. Last quarter’s results highlighted 9.6% revenue growth and earnings before interest, taxes, depreciation, and amortization growth of 7.6%. So long as these trends remain in place, the company is well positioned to provide dividend and capital-appreciation growth for long-term investors.
I think Restaurant Brands’s core business model is one to consider right now. As a fast-food purveyor, those looking to dine out will likely consider the company’s offerings in good times and bad. We all need to eat, and lower-cost dining options may actually become more in vogue if we do experience a recession. Thus, this is a stock I view as relatively bullet-proof for whatever economic environment we see in the years to come.
