Investing for the long term is all about finding the highest-quality companies on the TSX and holding for years. That’s why top growth stocks that can consistently expand their operations are some of the best investments to buy now.
Not only does investing for the long haul help mitigate short-term volatility, but it also allows you to take advantage of the power of compounding, which can significantly increase the pace at which your portfolio grows.
So, if you’re looking for top Canadian growth stocks to buy now and hold for the long haul, here are three of the best to consider today.
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One of the most impressive growth stocks on the TSX to buy now
There aren’t many stocks in Canada that have grown as fast or as consistently over the last half-decade as goeasy (TSX:GSY), the specialty finance stock.
In fact, over the last five years, its revenue has increased at a compound annual growth rate (CAGR) of 19.8%, and its normalized earnings per share (EPS) has increased at a CAGR of 31.9%.
Furthermore, over that stretch, goeasy investors have seen a total return of 173%, which is a CAGR of 22.2%, showing what an impressive and consistent stock goeasy has been.
Plus, what’s promising about goeasy is that it continues to have a tonne of growth potential going forward. There is no shortage of demand for consumer loans, and goeasy has demonstrated it can consistently manage risks and minimize charge-offs.
Going forward, analysts expect goeasy’s revenue to jump by another 21% this year and 14% next year. More importantly, though, its normalized EPS is expected to jump by 18% this year and another 20% in 2025.
Therefore, if you’re looking for the best growth stocks to buy now and hold long term, goeasy not only has a tonne of potential; it’s also trading cheaply.
Two top long-term stocks
In addition to goeasy, two more of the best Canadian stocks to buy now are Jamieson Wellness (TSX:JWEL) and Brookfield Renewable Partners (TSX:BEP.UN), two stocks offering both growth potential and resiliency.
Jamieson is a health and wellness company that produces vitamins, supplements, and natural health products. It’s a stock that has significant long-term growth potential, both organically and by acquisition. However, because it sells many essential health products, it’s also a defensive investment as well.
In the past five years, Jamieson’s revenue has grown at a CAGR of 16.2%, while its normalized EPS has increased at a CAGR of 12.8%.
Furthermore, going forward, analysts expect Jamieson will continue growing its revenue by more than 10% each of the next two years. Meanwhile, its normalized EPS is expected to increase at a CAGR of more than 13% in the next two years.
Therefore, while Jamieson stock trades at a forward price-to-earnings (P/E) ratio of just 20.8 times, below its five-year average P/E of 22.4 times, it’s certainly one of the best growth stocks to buy now and hold for the long haul.
Likewise, Brookfield Renewables is also an excellent investment due to both its resiliency and growth potential. There’s no question that green energy will be one of the highest-growth industries over the next decades as governments worldwide continue to target lower emissions.
However, in addition to the growth potential, the renewable energy industry is also significantly defensive due to the essential services it provides and long-term power purchase agreements that are signed.
So, when you consider Brookfield’s size, global reach and demonstrated track record of growth, it’s clear it’s one of the best growth stocks to buy now and hold for the long haul.
In fact, management targets long-term annual returns of 12% to 15%; plus, it also aims to increase the distribution by 5% to 9% annually.
And today, with Brookfield Renewables trading well off its 52-week high, its yield has jumped to 5.9%. That’s significantly higher than its five-year average of 4.4%.
Therefore, while you can buy Brookfield off its highs, it’s undoubtedly one of the best growth stocks to buy now and hold long term.
