1 Growth Stock With Legit Potential to Outperform the Market

Here’s why Boyd Group (TSX:BYD) remains a top growth stock long-term investors who want to beat the market may want to consider.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

For investors seeking a top growth stock with the potential to provide market-beating gains, the search is on. Indeed, there are hundreds of companies to choose from, with so many options on U.S.-based exchanges to pick. However, one TSX-based company I think is worth considering in this regard is Boyd Group (TSX:BYD).

Created with Highcharts 11.4.3Boyd Group Services PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Boyd is a relatively overlooked automotive services company that’s seen incredible growth in recent years. Of course, at its current valuation, the question is just how much future growth is already baked into its stock price. But if the company can continue to execute, there are reasons why many investors continue to believe this is a stock that can outperform.

With that said, let’s dive into the bull case behind why Boyd Group could be one of the best picks for investors to consider right now.

What does the company do?

As mentioned, Boyd Group is a top automotive services company, operating various chains of autobody service shops in Canada and the U.S. In the Canadian market, the company operates primarily under the Boyd Autobody & Glass banner, with the company operating under the Gerber Collision & Glass banner in the U.S. market.

This company has become among the most prominent retail car glass operators in these markets, also offering claims servicing for third-party administration of various accidental claims. In essence, as we drive more and our cars are on the road longer, Boyd stands to benefit from these long-term trends.

Notably, Boyd has continued to grow over the years using a growth-via-acquisition model, in which the company scoops up smaller chains of autobody repair shops, rolling them under its banners. This model has worked extremely well, as the company’s brand continues to resonate with its users and its footprint grows.

So long as the company continues to consolidate this fragmented space and move into new high-growth markets, there’s a lot to like about its growth trajectory. Trading around 53 times earnings, it’s clear many in the market continue to believe that the company’s long-term growth trajectory is intact.

Is Boyd a growth stock to buy?

In my view, Boyd’s business model and growth trajectory are attractive. And while the company’s overall sales growth of 10% is certainly strong (maybe not compared to its current multiple), future margin expansion should propel this stock higher over time. I’m of the view that this is a company with room for fundamental improvement, and when investors see this improvement, its multiple should expand. Of course, by the time the market realizes this stock is relatively cheap at current levels, it’s probably going to be too late.

So, for those who believe in the long-term trajectory of this company, now may be a good time to start building a position. That’s my view, for what it’s worth.

Should you invest $1,000 in Bombardier right now?

Before you buy stock in Bombardier, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Bombardier wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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 recommends Boyd Group Services. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Investing

Stocks for Beginners

Dip Buyers Could Win Big: The Best Canadian Stocks to Buy Now

These two growth stocks have taken hits recently, but their fundamentals remain strong, and their growth prospects are intact.

Read more »

A bull and bear face off.
Stock Market

Bear Market Bargains Emerge as Recession Stocks Return

If you want a deal, then go to the best stocks during a recession market dip.

Read more »

Canadian Red maple leaves seamless wallpaper pattern
Dividend Stocks

5 Canadian Dividend Stocks to Buy and Hold for the Next 20 Years

These Canadian stocks have paid dividends for decades, making them reliable investments to generate regular passive income.

Read more »

An investor uses a tablet
Stocks for Beginners

The Smartest Canadian Stock to Buy With $250 Right Now

Are you looking for the smartest Canadian stock to buy right now? Consider this gem and avoid market volatility.

Read more »

Dividend Stocks

3 Canadian REIT Stocks to Buy and Hold for the Next Quarter-Century

These three Canadian REITs trade cheaply and are highly reliable, making them some of the best stocks you can buy…

Read more »

Electricity transmission towers with orange glowing wires against night sky
Investing

Fortis Just Might Be the Best Canadian Dividend Stock to Buy in April

Let's dive into a few reasons why Canadian utility giant Fortis (TSX:FTS) still looks like a screaming buy heading into…

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

1 Practically Perfect Canadian Stock Down 24% to Buy Now and Hold for Life!

CNR stock is a top Canadian stock for investors, especially with shares down on the TSX today.

Read more »

a man relaxes with his feet on a pile of books
Investing

Got $7,000? How I’d Spread It Across 5 Blue-Chip Stocks for an Investing Foundation

Spreading $7,000 across these five blue-chip stocks provides a solid foundation for long-term financial success.

Read more »