Investing offers Canadians a tonne of benefits. It’s the best way to save and grow your capital for retirement or to reach financial freedom. It allows you to put your hard-earned money back to work for you. And, of course, it offers the potential to see your net worth skyrocket as high-quality stocks rapidly increase in value.
Of course, not every stock on the market is a potential millionaire-maker stock. However, there are several high-quality Canadian stocks with significant long-term growth prospects.
Furthermore, any stock that you can buy undervalued is ideal, but when you can buy a high-quality business with years of growth potential while it’s undervalued, you vastly improve the potential gains you can make over the long haul.
As exciting as investing can be, though, there are also considerable risks to keep in mind. Because every time you lose money on a stock or make a bad investment, you’re making it harder to grow your net worth and ultimately become a millionaire.
Therefore, it’s just as important to avoid bad investments as it is to find high-quality stocks. So, with that in mind, if you’re looking for some of the top Canadian growth stocks to buy today, here are two of the best with millionaire-maker potential.
One of the best millionaire-maker growth stocks on the TSX
There’s no question that one of the very best Canadian stocks on the TSX is Dollarama (TSX:DOL), the defensive growth stock.
Dollarama is an incredible business because it offers something consumers will never get tired of buying, discounted goods. Furthermore, the fact that many of the goods Dollarama sells are essential products or household staples ensures a steady stream of demand whether or not the economy is worsening.
In addition to its business model, Dollarama has also done an incredible job over the years of growing its store count, establishing its brand across Canada, and improving its merchandising.
This has led the stock to be one of the best and most consistent growth stocks on the market. In fact, over the last five and 10 years, Dollarama has grown investors’ capital at compound annual growth rates of 24% and 23%, respectively.
Plus, when you’re looking for millionaire-maker stocks and aiming to grow your net worth considerably, consistent compound growth is your best friend.
After two impressive years of significant revenue growth as the economy has worsened, though, Dollarama stock reached a new all-time high just last week. Furthermore, in the near term, analysts expect that Dollarama’s growth will slow down.
Therefore, while it’s one of the best Canadian stocks to buy and should certainly be on your watchlist, for now, you may want to wait for a slight pullback in the share price before buying the stock for the long haul.
A top Canadian healthcare tech stock
If you want a high-potential growth stock that is undervalued today, WELL Health Technologies (TSX:WELL) is one you’ll certainly want to consider.
Despite consistent and impressive revenue growth over the last few years, and now improvements in profitability in recent quarters, WELL has been out of favour since the end of the pandemic.
In fact, in the two full years since the end of 2021, its revenue has grown by over 150%, and its earnings before interest, taxes, depreciation, and amortization (EBITDA) is up by 88%.
Furthermore, for more than four years now, WELL has beaten consensus expectations in every quarter, yet its share price has only continued to decline.
Going forward, WELL’s guidance suggests that revenue will grow another 22% to 24% this year, and its adjusted EBITDA will increase 10% to 15%.
Meanwhile, today, WELL trades at a forward price-to-sales (P/S) ratio of just 0.95 times, the lowest it’s ever been and less than half of its three-year average forward P/S ratio of 2.03 times.
Not to mention, it trades at less than 13 times its forward earnings, which is an unbelievably cheap valuation for such a high-potential growth stock.
Therefore, with WELL Health still growing its operations rapidly, yet its share price is trading significantly undervalued and at the bottom of its 52-week range, it’s undoubtedly one of the best millionaire-maker stocks to buy now.
