For investors looking for growth opportunities, there are multiple growth stocks available on the Toronto Stock Exchange. These companies showcase the potential to deliver higher returns to investors in the long term and appreciate their capital accordingly.
Read to know the three best growth stocks you can invest in and look forward to generating higher returns.
Shopify
Shopify (TSX: SHOP) is the largest e-commerce platform in the world, offering services to mid- and small-size businesses. The establishment has two segments: merchant solutions and subscription solutions. In addition, the company’s innovative technology helps merchants to design, manage, market, and sell their services and products efficiently.
In 2023, Shopify increased its revenue to $2.1 billion, a whopping 24% increase from the previous year’s revenue. It also reported 30% year-over-year revenue growth after adjusting the business sales of logistics. Currently, the company has a market capitalization of CA$128.4 billion with a Beta (5-year monthly) of 2.2.
Shopify has a price-to-earnings ratio of 768.2 times, and earnings per share of $0.13. The company’s stock has gained approximately 3,000% since its listing on the Toronto Stock Exchange in May 2005.
Spin Master
Spin Master (TSX: TOY) is a children’s entertainment company operating in the CAD$100 billion global toy industry. The company designs, creates, manufactures and markets a portfolio of brands, products and entertainment properties. Spin Master Corp. has a global presence with more than 30 offices in about 20 countries and generates sales from about 100 markets.
In 2023, the company reported revenue of $502.6 million, a 7.9% significant increase from $465.8 million in 2022. The operating segment revenue highlights an increase of 76.9% in entertainment, 2.5% in toys, and 7.1% in digital games. Currently, the company has a dividend yield of 0.75%, but it has the potential to rise in the upcoming years. Thus, investing in Spin Master stock should continue to drive impressive returns due to its growth potential.
Boyd Group
Boyd Group (TSX: BYD) is a glass repair and auto body service company set up in Canada, operating in the United States and Canada. It operates under the name Boyd Autobody and Glass in Canada and is one of the largest auto glass retailers in the United States.
The company will release its fiscal year 2023 and fourth quarter financial results of the same year on 20th March 2024. BYD provides a small dividend yield, but massive long-term growth, as evidenced by its chart above. For long-term investors looking to play continued consolidation in a fragmented sector, Boyd is one of the best options in the market to do so right now.
