For investors trying to break the mould in their search for the top growth stocks to buy around the world, exploring global markets matters. The Canadian stock market tends to be considered the place to go for stability. Whether it’s commodity-related stocks, banks or other lower-beta cyclical plays on the long-term growth of the North American market, there’s a lot to like about what Canada brings to the table.
In this article, I’m going to highlight two of the top Canadian growth stocks I think investors would do well to consider right now.
Let’s dive in!
Shopify
Canadian e-commerce giant Shopify (TSX:SHOP) is a specific growth stock I continue to come back to, and for good reason.
Shares of Shopify have been volatile in recent years, but have begun to head higher. This move makes sense, considering how stable the company’s revenue and earnings growth trajectory has been of late. And despite a downtick following the pandemic-related surge in such companies, Shopify’s market capitalization matches its growth prospects better than it has in some time.
Indeed, from a valuation multiple perspective, Shopify hasn’t been this cheap in a very long time. Outside of the 2022 dip, when investors could really pick up shares of Shopify stock at a discount (when I was pounding the table very hard on this name), this stock is still among the more reasonable high-growth names in the market to consider.
For those seeking market-beating growth, this would be among my top picks right now.
Constellation Software
Another top Canadian growth stock that’s certainly worth considering, at least on the basis of its stock chart below, is Constellation Software (TSX:CSU).
Having grown for decades via a growth-by-acquisition model, what Constellation has essentially done is put in offers (many of which are accepted) for smaller to medium-sized IT-focused companies. Constellation has grown its overall portfolio in a substantial way, while also increasing its return on invested capital for those looking for exposure to this high-growth space.
I don’t want to be grandiose and suggest that this company is akin to the Berkshire Hathaway of the Canadian tech scene, but Constellation Software would be the closest approximation in my books. Thus, for those looking for similar high-growth upside over the decades to come, I think this chart is more likely than not to continue in the direction it’s headed.
