Investing in growth stocks for the long term is one of the best ways to build wealth. While market volatility can create short-term fluctuations, high-quality growth stocks tend to outperform over time, rewarding patient investors.
In this article, I’ll highlight three brilliant growth stocks with strong fundamentals and the ability to thrive for years to come.
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Kinaxis stock
The first Canadian growth stock on my radar right now is Kinaxis (TSX:KXS). This Ottawa-based tech firm focuses on supply chain orchestration, using artificial intelligence (AI) to help businesses manage logistics more efficiently. KXS stock currently trades at $155.11 per share with a market cap of $4.4 billion.
In the quarter ended September 2024, the company’s revenue climbed 12% YoY (year over year) to US$121.5 million, with the help of a 16% surge in its software-as-a-service segment revenue. Meanwhile, adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) soared by 32% YoY, pushing its EBITDA margin to 25%. This strong momentum encouraged Kinaxis management to raise profitability guidance for the third consecutive quarter.
What makes Kinaxis even more exciting is its continued investment in AI-driven solutions. With supply chains becoming more complex, demand for its AI-driven solutions is rising, making it a top growth stock for long-term investors.
goeasy stock
Second in line is goeasy (TSX:GSY), a top non-prime consumer lender in Canada. Through its brands like easyfinancial, easyhome, and LendCare, it provides loans and lease-to-own options. After rising by 5% over the last year, GSY stock currently trades at $168.86 per share with a $2.8 billion market cap and an annualized dividend yield of 3.5%.
goeasy just posted a 20% YoY increase in its fourth-quarter revenue to a record of $405 million, with its loan portfolio growing 26% from a year ago to $4.6 billion. Amid declining interest rates, demand for credit remains strong, and goeasy is expanding while keeping profitability intact.
With plans to scale its loan portfolio to between $7 billion and $8 billion by 2027, goeasy has the potential to improve financials further. Moreover, its omnichannel approach and ability to adapt to regulatory changes make it a compelling growth stock to hold for years to come.
Aritzia stock
And finally, the third growth stock on this list is Aritzia (TSX:ATZ), a top fashion brand that’s been making waves in the retail space. It designs and sells high-quality apparel through its e-commerce platform and a large network of over 125 boutiques across North America. After rallying by 24.3% year to date, ATZ stock trades at $66.41 per share with a market cap of $7.6 billion.
Aritzia’s revenue rose 11.5% YoY in the quarter ended November 2024 to $728.7 million with the help of its strengthening U.S. sales. Meanwhile, its adjusted quarterly earnings climbed by 51% YoY to $0.71 per share.
As the company continues to focus on aggressive U.S. expansion with digital growth and boutique openings, ATZ stock could continue soaring in the coming years, making it an attractive buy today.
