There’s no question that Canadian growth stocks are some of the best long-term investments you can buy and hold in your portfolio. However, not just any stock with momentum qualifies.
The goal is to find companies that genuinely resonate with consumers and have the potential to expand for years. These are businesses with high-quality operations and significant competitive advantages.
Because of their long-term potential, many of these stocks often trade at a premium. That can make them more volatile, but it also creates windows of opportunity.
With that said, waiting around forever hoping they get cheaper might leave you watching from the sidelines while they continue to climb.
Therefore, if a stock is truly top tier, buying and holding it now makes sense. And if you ever get the chance to buy it on a dip, don’t hesitate.
So, with that in mind, here are five Canadian growth stocks worth buying today and holding for the next 15 years.
Source: Getty Images
Three of the best Canadian growth stocks to buy and hold for the long haul
If you’re looking for high-quality companies that have the potential to earn you significant capital gains over the long haul, three of the best are Aritzia (TSX: ATZ), goeasy (TSX: GSY) and Dollarama (TSX: DOL).
All three of these stocks have shown for years now that not only can they generate rapid growth, but they can also grow at a consistent pace.
For example, Aritzia is a retail stock that has resonated exceptionally well with consumers. In just the last five years, its revenue has grown at a compound annual growth rate (CAGR) of 21.7%.
That’s not only impressive growth for any stock, but especially when you consider that stretch includes the pandemic, when many retailers saw massive declines in their revenue. And going forward, Aritzia still has a tonne of potential as it expands in the U.S, which is why it’s one of the best Canadian growth stocks to buy now.
Meanwhile, goeasy has grown at an even more impressive pace. The specialty finance stock has seen its revenue increase at a CAGR of 20.1% over the last five years. Even more importantly, though, its normalized earnings per share (EPS) have increased at a CAGR of 26.4% through that stretch.
Finally, Dollarama’s revenue has increased at a CAGR of 10.6% over the last five years, while its normalized EPS have increased at a CAGR of 16.3% over that period.
And while Dollarama’s growth rates are slightly lower, that’s mainly due to the fact that it’s a much larger company. And the larger a company becomes the harder growth is to achieve.
However, with that being said, what makes Dollarama one of the best Canadian growth stocks to buy and hold for the long haul is its reliability, defensive nature, and the fact that it typically generates most of its growth when the economy is struggling and many of its growth stock peers are losing value.
Two top Canadian businesses with growth potential as e-commerce continues to become more popular
In addition to goeasy, Aritzia and Dollarama, there is also a tonne of potential in the e-commerce space, especially as technology continues to improve.
That’s why Shopify (TSX: SHOP) and Cargojet (TSX: CJT) are two more of the best Canadian growth stocks to buy now.
While online shopping saw a rapid uptick in growth during the pandemic, as technology improves and the industry continues to develop, there’s a lot more growth potential in the coming years.
And not only are Shopify and Cargojet positioned to benefit from that growth, but both stocks are actually contributing to the development of the industry.
As Shopify continues to roll out innovative solutions to help merchants bring more products online, and Cargojet enables faster delivery through its overnight shipping services, the appeal of e-commerce will only grow.
Therefore, by addressing key barriers like limited product availability and slow shipping times, these companies are making online shopping more attractive and accessible, driving further industry growth.
So, if you’re looking for high-quality Canadian growth stocks to buy now and hold for years to come, there’s no question that Shopify and Cargojet are two of the best to consider right now.
