Investing in Canadian companies with solid fundamentals and the potential to deliver profitable growth, even at a large scale, can help generate significant wealth over time. Additionally, diversifying a portfolio can help spread risk and maximize long-term growth potential.
So, if you have $5,000, consider buying these three best Canadian stocks.
Shopify
Shopify (TSX:SHOP) is one of the top TSX stocks to buy now. This Canadian technology company is poised to benefit from increased consumer spending during the holiday shopping season, which will drive its gross merchandise volume (GMV) and revenue. Besides this seasonal uptick, Shopify is well-positioned to gain from the growing shift toward multi-channel selling and payment platforms.
Shopify’s product innovation, addition of new features, expansion of marketing and selling platforms, and unified commerce solutions are likely to drive its merchant base and GMV.
Shopify’s point-of-sale solution continues to gain traction with solid growth prospects from offline activity and expansion into business-to-business (B2B) commerce. Shopify is also expanding its payment solutions in international markets, likely boosting merchant adoption and strengthening its ecosystem.
The omnichannel commerce platform provider is leveraging artificial intelligence (AI) to enhance its platform and services, which will likely accelerate productivity and growth. Moreover, it is focusing on reducing costs and transitioning towards an asset-light business model, positioning itself well to deliver sustainable earnings in the long term and support its share price.
Bombardier
Bombardier (TSX:BBD.B), a global aviation leader, is set to capitalize on the growing demand for business jets. Further, its extensive aftermarket and support facilities network gives it an edge over its peers. Its stock has more than doubled over the past year. Meanwhile, the ongoing momentum in its revenues, improving profitability, and solid growth prospects suggest that Bombardier stock has significant upside potential.
The manufacturer of business jets is witnessing an increase in aircraft deliveries. Its product mix, including a new lineup of medium and large business jets, and focus on innovation suggest that the trend will likely be sustained.
Bombardier has expanded into defence, services, and the pre-owned aircraft market. This diversification provides new revenue streams, adds stability, and supports profitability. In addition, Bombardier is optimizing its balance sheet by improving liquidity and lowering its debt load, which positions it well to accelerate growth through investments in new opportunities.
The company’s solid growth prospects across all business segments, improving profitability, and balance sheet strength position it well to outperform the broader markets in the coming years.
Aritzia
Aritzia (TSX:ATZ) is another attractive stock capable of delivering above-average returns due to its solid revenue and earnings growth. The multi-channel retailer’s focus on boutique expansion, building brand awareness, and e-commerce initiatives is likely to benefit shares.
The clothing company is increasing its geographical footprint by opening new boutiques in high-growth markets. Aritzia plans to open about 8–10 new boutiques in the U.S. annually through fiscal 2027, which will enable it to increase its retail square footage by about 60%. Further, Aritzia is adding omnichannel capabilities, which will bolster its e-commerce growth rate. New boutique openings and omnichannel offerings will likely drive brand awareness and support long-term growth.
Further, Aritzia is investing in technology, supply chain efficiencies, and marketing. Moreover, the company is focusing on lowering warehousing costs, which will likely enhance margins, drive earnings, and support its share price.
