3 Top Growth Stocks to Buy in May

These Canadian growth stocks have strong fundamentals with potential to grow their sales and earnings rapidly over the next decade.

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Growth stocks are known for multiplying investors’ wealth and delivering above-average returns in the long term. However, one should exercise caution in selecting growth stocks, as higher returns carry higher risks. 

With this background, the following are three top growth stocks to buy in May 2024. Notably, these Canadian stocks are backed by businesses with solid fundamentals and the potential to grow their sales and earnings rapidly over the next decade.


Speaking about growth stocks, goeasy (TSX:GSY) tops my mind for its ability to deliver strong financials in all market conditions. Thanks to its ability to grow rapidly, goeasy stock has created significant wealth for its investors through capital gains and dividend payouts. Let’s dig deeper. 

This subprime lender has consistently delivered double-digit revenue and earnings growth over the years. For example, goeasy’s revenue has increased at a compound annual growth rate (CAGR) of 19.8% in the last five years (as of December 31, 2023). Moreover, its earnings per share (EPS) growth boasts an impressive five-year CAGR of 31.9%. 

Thanks to this solid growth, goeasy stock has gained over 312% in five years, reflecting a CAGR of 32.6%. Furthermore, goeasy enhanced its shareholders’ value by growing its dividends remarkably fast

goeasy’s omnichannel offerings, growing geographical footprints, diversified funding base, and solid underwriting capabilities will likely support its growth. The company will also benefit from product expansion, a large addressable market, a strong balance sheet, and efficiency improvements. 


Next up is a low-volatility stock, Dollarama (TSX:DOL). This discount retailer operates a defensive business but offers solid growth. In addition, the company is famous for returning higher cash to its shareholders. Thanks to these attributes, Dollarama, which sells everyday essentials at low and fixed price points, has consistently delivered above-average returns and outperformed the TSX. 

For instance, Dollarama stock has increased at a CAGR of 23.9% in the last five years, delivering capital gains of about 192%. Moreover, it has appreciated nearly 700% in the past decade.

Dollarama is well-positioned to deliver solid growth, reflecting its value pricing strategy, which will likely drive traffic and overall sales and earnings. Moreover, product expansion, an extensive and growing store base, and direct sourcing will likely support the company’s financials, share price, and dividend. 


Shares of the luxury clothing company Aritzia (TSX:ATZ) should be on your radar for its solid financials and ability to grow its top and bottom lines at a double-digit rate. For instance, Aritzia’s top revenues have grown at a CAGR of 19% in the past five years, and its adjusted net income increased at a CAGR of 13% during the same period. 

Despite the tough year-over-year comparisons in Q4 (fourth quarter) of fiscal 2024, Aritzia managed to grow its revenue at a healthy pace. Its top line increased by 7% in the fourth quarter on top of the 44% growth registered in the prior-year period. This shows the resiliency of its business and ability to attract shoppers. 

Its focus on introducing new styles, and applying data analytics and technology will likely optimize its product portfolio and accelerate its growth rate. Moreover, the opening of new boutiques augurs well for growth. 

Aritzia aims to launch 8 to 10 new boutiques annually through FY27, which will accelerate its revenue and earnings growth rate. Additionally, the company is enhancing its online customer experience by expanding omnichannel offerings and broadening its product range. 

With increased sales, an improved inventory position, and operational efficiencies, Aritzia could deliver double-digit sales and earnings growth, which is expected to bolster its share price.  

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aritzia. The Motley Fool has a disclosure policy

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