I'd Aim for $1 Million Buying Just These 3 TSX Stocks

I’d Aim for $1 Million Buying Just These 3 TSX Stocks

These three TSX stocks have a long history of making millionaires, but don’t count them out. Long-term investors have more to gain.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published July 23, 2024 8:00 pm EDT

When it comes to investing in TSX stocks with the goal of building a $1 million portfolio, there’s a problem. Many may give up way too soon.

If you want that $1 million, then you need to think about holding on for the next few decades to get you that million. Not the next few years. And remember, $1 million is $1 million! It doesn’t matter when you get it, but it will likely be that you won’t get it if you don’t spend the time with some strong stocks.

So today, let’s look at three long-term winners. Ones that won’t make you wait 50 years to reach that million. But will provide you with a far less volatile ride than some other options out there.

Shopify

Investors looking to build a million-dollar portfolio should seriously consider adding Shopify (TSX:SHOP) stock to their holdings. Shopify has demonstrated consistent growth, strategic innovation, and resilience, making it a compelling investment opportunity.

Shopify’s latest financial results showcase its robust growth. For Q1 2024, Shopify reported revenues of US$1.9 billion, a 23% increase year-over-year, and beat analysts’ expectations with earnings per share (EPS) of US$0.12, surpassing the consensus estimate of $0.08. The company’s gross profit also surged by 33% to US$957 million, highlighting its efficient cost management and expanding margins.

Despite recent market volatility, Shopify remains resilient. The company’s continued innovation, such as its acquisition of Deliverr for US$2.1 billion, positions it well for future growth by enhancing its fulfillment network and logistics capabilities. This strategic move aims to streamline delivery processes and improve service for its merchants, further solidifying Shopify’s market position.

Shopify’s future looks promising with expected earnings growth of 32.3% in the coming year. The company is set to announce its Q2 2024 financial results on August 7, 2024, which will provide further insights into its performance and growth trajectory.

Constellation Software

Investors seeking robust growth and a solid return on investment should seriously consider adding Constellation Software (TSX:CSU) stock to their portfolios. Constellation Software has consistently delivered impressive financial results. For the first quarter of 2024, the company reported earnings per share (EPS) of $37.21, significantly exceeding the consensus estimate of $23.21. The revenue for this period was $3.2 billion, demonstrating its ability to generate substantial income despite market fluctuations.

A cornerstone of Constellation Software’s strategy is its continuous pursuit of strategic acquisitions. The company has successfully integrated numerous software businesses into its portfolio, which has contributed to its steady growth and market expansion. This acquisition-driven model has proven effective, allowing Constellation Software to scale efficiently and maintain a competitive edge in the software industry.

With a market capitalization of $91.2 billion, Constellation Software is a stable and influential player in the market. The stock has shown positive momentum, reaching a new 52-week high at $4,307.95. This stability and growth indicate that CSU is well-positioned to weather market volatility and continue delivering strong returns.

AtkinsRéalis Group

Finally, a millionaire-maker could certainly include AtkinsRéalis Group (TSX:ATRL), especially for investors looking to achieve more long-term gains. Formerly SNC-Lavalin, it has consistently demonstrated strong financial performance.

ATRL has been actively involved in strategic projects that position it well for future growth. Recently, the company announced its intention to release its second-quarter results for 2024 on August 9, 2024. This upcoming earnings report is highly anticipated by investors and analysts alike, as it is expected to provide further insights into the company’s financial health and growth trajectory.

The company’s rebranding to AtkinsRéalis signifies a new era of strategic focus and market expansion. This change is not just cosmetic but reflects a broader vision and strategic alignment with global market opportunities.

AtkinsRéalis’ diversified service portfolio spans engineering services, nuclear, operations and maintenance, and project management. This diversification helps mitigate risks and ensures steady revenue streams across various sectors. The company’s involvement in significant infrastructure projects, including the development of electric vehicle manufacturing capabilities in Canada, further strengthens its market position. So be sure to pay attention come next earnings.