When investing in a bull market, I think it would be a good idea to look for companies that can power the next record run. If you don’t know what this means, consider that gains within the S&P 500, the largest index in the U.S., were carried by just seven companies in 2023. Considering that the index grew by about 24% last year, it’s tremendous to think that just seven companies were responsible for that growth.
In this article, I’ll discuss three high-growth stocks that could power the TSX’s next record run. I believe these three companies all have what it takes to continue growing for years to come.
Start with this proven winner
I think Constellation Software (TSX:CSU) could be one of the stocks responsible for the next record run here in Canada. Listed at a market cap of about $78 billion, Constellation Software is one of the largest companies in Canada. Knowing that indices tend to be market-cap-weighted, we can assume that Constellation Software’s stock performance should have a much greater impact on the index than many of its peers.
Looking at its one-year performance, investors can see that Constellation Software stock has gained more than 56%. This year alone, the stock has gained just over 13%. With the company continuing to dedicate itself to growth and intelligent acquisitions, I believe Constellation Software stock could continue to put up these kinds of numbers for years to come.
Another great stock market leader
Shopify (TSX:SHOP) is another stock that I think could be responsible for the stock market’s growth during this bull run. Shopify is even larger than Constellation Software, being listed at a market cap of about $97 billion. Although the stock has encountered a bit of difficulty over the past couple of weeks, falling about 16%, Shopify’s one-year performance is still something to behold (84% gain).
As a leader within the global e-commerce market, Shopify is a company that should still be relevant for years to come. I believe the e-commerce market will continue to grow as future consumers become even more acquainted with the idea of shopping online. Consider that there are still many countries around the world where that isn’t the norm. Shopify has shown an ability to penetrate many countries around the world. Thus, I think it could be able to capitalize on future growth in that regard.
An underappreciated company
Finally, investors should stop sleeping on Alimentation Couche-Tard (TSX:ATD). For those who are unfamiliar with this company, it operates convenience stores. Alimentation Couche-Tard operates under several banners, including its flagship, namesake stores, Dairy Mart, On the Run, Circle K, and many more.
Because of the nature of its business, Alimentation Couche-Tard doesn’t get as many eyes on its company compared to other high-growth stocks. However, there’s no denying this company’s greatness. Over the past year, Alimentation Couche-Tard stock has gained more than 33%. That compares to the TSX, which has gained about 4% over the same period.
