Growth Investors: Don’t Miss Out on These 3 Overlooked TSX Stocks

Here are three top Canadian growth stocks worth buying and holding for the long term for those betting on a positive market in 2024.

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For investors seeking growth opportunities, there are a number of growth stocks with big potential trading on the TSX. These companies have promising potential for sustainable long-term growth. Personally, I think it’s important not to miss out on what they have to offer.

Let’s explore three hidden gems in the Canadian stock market and understand why investors are increasingly focusing on these names. 

Spin Master

Spin Master (TSX:TOY) is a Canada-based company engaged in the business of children’s entertainment and accessories. The company is an established name in the global toy industry worth approximately $100 billion. Its focus is primarily on designing, manufacturing, and marketing brands, products, and entertainment accessories. The company is known for famous brands like Paw Patrol, Rubik’s Cube, Hatchimals, Bakugan, and more.  

Recently, Spin Master has been sponsoring the KIDZ BOP LIVE 2024, which is a joint initiative between KIDZ BOP, a popular Kid’s music brand, and Live Nation. Furthermore, the company has successfully completed its acquisition of Melissa & Doug for US$950 million. For those betting on a world-class growth stock with impressive IP, Spin Master would be a great choice. Its long-term stock chart tells a compelling story.

Now, Spin Master has dipped quite a bit from a rally into late 2022. I think the company’s current valuation makes a lot more sense, and there’s still plenty of growth ahead. Accordingly, this is a stock worth keeping on the radar right now.

Shopify

Shopify (TSX:SHOP) is a recognized cloud-based e-commerce platform provider. The company caters to businesses of all sizes but is known for its ability to democratize retail. By allowing SMBs to open up their own online shops, business owners aren’t beholden to the e-commerce behemoths they once were.

Shopify’s stock price is coming back, though it’s still a ways off from its all-time high set in late 2021. In fact, the stock could double from here and still not breach its highs. Thus, for those betting on a strong bull market rally from here, SHOP stock looks relatively attractive.

The company’s recent results have also spurred interest. In its third quarter, Shopify revealed a notable 25% surge in revenue, emphasizing its expanding customer community and ongoing market reach. Moving from a $346 million operating loss the previous year to a quarterly profit of $122 million reflects Shopify’s potential to strengthen its operations while pursuing sustained profitability.

Moreover, the company has plenty of growth catalysts to rely on as the economy continues to decentralize over time. I think there’s a pathway to consistent profit growth, which should support Shopify’s fundamental rise higher.

OpenText

OpenText (TSX:OTEX), a Canada-based software solutions and IT company, is among the tech companies many investors may not have heard of. That said, I think this is a growth stock worth looking at right now.

OpenText offers a diverse range of products and solutions for enterprise content management, including business networks, AI and analytics, digital process automation, and security. Though the company is headquartered in Ontario, it has a global presence spanning regions of America, Asia-Pacific, the Middle East, Europe, and Africa. In fact, the majority of its revenues are generated outside of Canada. So, for investors looking for growth stocks that provide geographical diversification, this is a great pick.

OpenText has recently unveiled Cloud Editions 24.1 along with the latest advancements in OpenText Aviator™. Its new OpenText Aviator facilitates various AI applications by ensuring secure information management and governance across knowledge bases. These improvements and integrations introduced in Cloud Editions 24.1 signify a strategic shift in reimagining work through the application of AI to business workflows.

Bottom line

These three growth stocks each have their own unique catalysts to consider. Operating in different sectors and geographies and with unique business models, I think any portfolio could do well owning these stocks individually or together.

Personally, each of these stocks is on my watch list right now. If they get cheaper, I think they’ll be even better deals. But at current prices, I think investors can still do very well over the long term by owning them here.

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 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Spin Master. The Motley Fool has a disclosure policy.

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