For investors who aim to become millionaires by a certain age (there’s never a “wrong” time to aim for seven-figure status), finding the right mix of growth stocks and other investments that can allow one to sleep well at night is important.
In this article, I’m going to highlight three top Canadian growth stocks I think have the potential to outperform over the long term. For those able to maximize their RRSP contributions on an annual basis, investing consistently into such names can provide the sort of long-term gains many investors are hoping for. In short, these are the stocks I’d hone in on for those seeking millionaire status over time.
Shopify
One of my top growth picks in the Canadian market continues to be Shopify (TSX:SHOP).
Shares of the e-commerce platform provider have been on a tear of late, up more than 100% over the past year. Additionally, this is a company that’s since moved out of its five-year funk, with Shopify actually trending more than 30% higher over the past five years.
In other words, investors who have stuck with this top Canadian growth stock have outperformed most who sold during the stock’s most recent post-pandemic dips.
In my view, Shopify is a solid way for long-term investors to ride the growth e-commerce companies are bound to provide in the years and decades to come.
Kinaxis
Another company I’ve been pounding the table much harder on of late is Canadian AI stock Kinaxis (TSX:KXS).
Known for its supply chain orchestration software, Kinaxis has become a much bigger player in the world of artificial intelligence. Indeed, the company’s SaaS solutions are highly sought after already among the companies in diverse industries who use Kinaxis’ core platform. However, with the rise of AI and improved solutions across the board, there’s anticipation that both revenue and earnings growth could accelerate moving forward.
With 11% revenue growth seen this past quarter, and an adjusted EBITDA margin of 25%, this AI integration could further enhance the company’s underlying fundamentals. The market seems to agree, given the way this stock has moved of late.
Constellation Software
Last, but certainly not least on this list of millionaire-maker stocks, we have Constellation Software (TSX:CSU).
Constellation Software has grown to its incredible size (a market capitalization north of $100 billion) thanks to its ongoing growth-by-acquisition strategy. The company continues to consolidate a highly fragmented IT and software space. In doing so, Constellation has created a company with a massive moat in many key markets.
As investors look for large-cap ways to play overall growth in the IT and tech services space, I think Constellation Software will continue to get more airtime.
For long-term investors, all three companies should make welcome additions to any portfolio, and these are positions I’d consider adding to over time (on significant dips, of course).
