Investors looking to build a millionaire portfolio certainly have plenty of options to choose from. And while most capital is searching for the best high-performing U.S. or international growth stocks right now, there are plenty of Canadian stocks that look like solid growth picks in this current environment.
These three Canadian stocks are among my top picks for those seeking portfolio cornerstones worth considering amid volatility moving forward. Over the long term, these companies continue to produce solid gains, and I anticipate that trend will continue over time for the following reasons.
Constellation Software
Constellation Software (TSX:CSU) is a Canadian tech giant that specializes in acquiring and developing some of the best software firms focused on a number of key industries, including financials. The company has scaled to an impressive size over time, using a growth-by-acquisition model to cement its dominant position in its core sector.
The company’s stock price has absolutely soared over the long term. Taking a look at the chart above and zooming out over any relatively long time frame, investors can see what $1,000 invested in this stock would be worth today. The numbers are staggering for those who have stayed invested in this stock over the long term.
In my view, Constellation Software remains one of the top growth stocks in the TSX for investors to consider. The company’s customer base, aggressive acquisition and integration of vertical market software companies, and offering of customized software solutions make it a must-buy stock in 2024. These are the factors that will, in my view, allow many investors to create a millionaire portfolio over the long term.
Shopify
One of the largest e-commerce globally, Shopify (TSX:SHOP) is known for its massive growth post-pandemic. The company harnesses its exceptional and extensive capabilities to seize market share in the global e-commerce industry.
Since the pandemic, Shopify’s overall growth rate has come down, as has the company’s valuation. that said, the stock’s performance in recent years has improved as investors have stepped back into owning this name, which allows small- and medium-sized businesses to set up online shops.
As global e-commerce growth picks up, Shopify is well-positioned to capture this upside via its fee-based pricing model. The idea is that as the entire sector scales up, Shopify is the picks-and-shovels way to play that growth. That’s an easy-to-understand thesis and one I think many growth investors looking for a millionaire portfolio can get behind.
Restaurant Brands
Restaurant Brands (TSX:QSR) isn’t necessarily viewed as one of the top growth stocks on the TSX, from a pure fundamentals standpoint. However, the company’s long-term growth trajectory has been impressive, as the company has grown its footprint around the world via its Tim Hortons, Burger King, Popeyes, and Firehouse Subs banners.
Restaurant Brands has seen consistent cash flow growth over the long term, which has bled into a higher valuation over time. Importantly, while QSR stock has appreciated considerably in recent years, its outperformance has been mainly fundamentals driven. In fact, the company’s multiple has come down considerably since I first started covering this stock years ago.
This reflects the view that the market expects lower growth over the long term. Accordingly, if Restaurant Brands can continue to provide meaningful growth (above market expectations), this is a stock that looks poised to go on a very nice run over the long term.
