3 High-Flying TSX Stocks That Could Keep On Climbing

These high-flying TSX growth stocks certainly have the potential for more upside over the long term, if secular growth trends remain intact.

| More on:
Happy family father of mother and child daughter launch a kite on nature at sunset

Image source: Getty Images

Finding the high-flying growth stocks that have performed well in previous cycles is easy. However, determining how many of these high-flying stocks will continue to soar is a much more difficult endeavour.

The TSX is filled with a range of high-yielding and typically lower-growth stocks, compared to other markets. However, there are some high-growth names I think are worth considering right now.

These three stocks have the right mix of sustainable growth drivers and solid fundamentals I think could benefit investors during the next growth wave.

Shopify

An e-commerce giant that’s become synonymous with the Canadian tech sector, Shopify (TSX:SHOP) remains one of my high-conviction picks. The company’s core platform is a key e-commerce driver, allowing small- and medium-sized businesses to set up online shops. As the push for digital continues, Shopify should benefit from this longer-term trend.

The company’s financial picture has improved dramatically, with investors largely upgrading their growth expectations for this stock. However, a recent dip may provide a solid entry point for investors. Despite 26% year-over-year revenue growth this past quarter and strong subscription solutions performance, this is a stock that looks stuck in the mud. However, when the next growth cycle comes around, SHOP is a stock I think could really fly. Keep an eye on Shopify here.

Manulife Financial

A much more boring stock than that of Shopify, Manulife Financial (TSX:MFC) is an insurance giant that continues to perform well. The stock is up big on a year-to-date basis, as interest-sensitive names continue to see strong buying pressure. The question is whether this upside momentum can continue.

I think it can. Manulife’s diversified revenue model and geographic diversification means this isn’t just any old insurance company. Manulife has diversified into wealth management and other lucrative businesses, serving more than 35 million customers globally.

I think this global growth story has more room to run. Manulife saw a net profit increase of 18% over the past year, driven in part by its expansion into China. As more Chinese consumers seek out life insurance options and Manulife grows its presence in this market and others, the upside potential for this name is significant.

Loblaw

Loblaw (TSX:L) is among the leading Canadian grocery retailers that’s seen impressive growth in recent years. One look at the stock chart below and it becomes clear that having a near-monopoly in the Canadian market can be lucrative.

Aside from the company’s core retail business, Loblaw is also a leading pharmacy, grocery, and merchandise retailer in Canada. In addition, the company offers financial services, such as credit card services and guaranteed investment certificates. The grocery retailer also carries robust private label assortments, like President’s Choice and No Name. 

In February 2024, Loblaw reported its fourth-quarter performance of 2023, highlighting impressive growth in its revenue and adjusted EBITDA by 3.7% and 9.4%, respectively. Despite challenges, Loblaw continues its strive to drive more traffic, as its food and drug retail segments achieve same-store sales. In addition, the company plans to expand its operations by opening 40 new stores. This strategy will help Loblaw to increase its revenue and profit over time, potentially leading to continued outperformance. 

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 has a disclosure policy.

More on Investing

Target. Stand out from the crowd
Stocks for Beginners

2 No-Brainer Stocks to Buy With $7,000

Got some cash to fill up your TFSA? Here are two stocks that look like good buys on the recent…

Read more »

Path to retirement
Retirement

RRSP Must-Haves: 2 Canadian Stocks to Secure Your Retirement

Future retirees can use the RRSP to save for retirement and be financially secure with the help of a Dividend…

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Investing

2 Utility Stocks That Could Help Energize the AI Boom

Canadian Utilities (TSX:CU) and another great utility stock could indirectly benefit from the rise of AI.

Read more »

top TSX stocks to buy
Stocks for Beginners

3 Stocks That Can Help You to Get Richer in 2024

These three stocks have already proven their worth this year, but are set to continue climbing in 2024 and even…

Read more »

Woman has an idea
Dividend Stocks

3 No-Brainer Best Dividend Stocks in Canada to Buy With $500 Right Now

Are you craving more cash flow? $500 in one of these best dividend stocks in Canada might deliver a slice…

Read more »

Canadian energy stocks are rising with oil prices
Dividend Stocks

5 Stocks Whose Dividends Just Keep Growing

Stocks like Enbridge and Fortis are growing their dividends for decades, and returning higher cash to their shareholders.

Read more »

Man considering whether to sell or buy
Tech Stocks

BlackBerry Stock Is Down 20%: Buy the Dip or Call It a Pass?

BlackBerry stock has seen a series of 20% monthly dips since December 2023. Should you buy the dip or call…

Read more »

A shopper makes purchases from an online store.
Tech Stocks

Kinaxis: The AI Stock Investors Are Missing Out On

Kinaxis stock (TSX:KXS) is one AI stock you don't want to miss, with proven results and long-term contracts leading to…

Read more »