The market is blessed with an abundance of Canadian growth stocks for investors to consider buying right now. And contrary to the view that the market is running off into the sunset, there’s still a lot of long-term potential for some of those top growth stocks.
Here’s a look at a trio of Canadian growth stocks that have massive long-term appeal that every investor needs to consider.
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Option #1: Couche-Tard
The first of the Canadian growth stocks for investors to consider right now is Alimentation Couche-Tard (TSX: ATD). Couche-Tard is one of the largest convenience store and gas station operators on the planet.
Couche-Tard hasn’t been coy on its aggressive approach to expansion. In fact, that’s one of the reasons why the company has grown rapidly over the past decade. More importantly, however, is the company’s disciplined approach to expansion that should be noted.
That disciplined approach was on display during the failed 7-Eleven acquisition. Couche-Tard walked away from its whopping $47 billion deal, citing a “lack of meaningful engagement” following nearly a year of pursuing a deal.
While that deal was a setback, it does free up massive amounts of capital for Couche-Tard to look elsewhere for growth. That growth could come in the form of smaller, bite-sized acquisitions, which won’t come with regulatory hurdles.
Perhaps best of all is Couche-Tard’s stock price. Despite the market surging by double digits and Couche-Tard’s multi-billion-dollar war chest, the stock is trading down nearly 7% year to date.
That slump makes for an excellent entry point for long-term investors, while also giving a bump to Couche-Tard’s dividend. As of the time of writing, Couche-Tard’s quarterly dividend now offers a 1.06% yield.
Option #2: Shopify
It’s hard to mention Canadian growth stocks and not mention Shopify (TSX: SHOP). Shopify’s e-commerce platform has become a staple over the past decade. The company’s impressive business has also led the stock to surge over 100% in the trailing 12-month period.
Here’s the kicker for prospective investors still on the edge, contemplating whether to invest: despite those massive gains, Shopify still trades below where it was during the pandemic.
Adding to that, this is a very different Shopify from the pandemic era. Apart from the far-improved financials, Shopify is innovating and expanding in several areas. In addition to continued international expansion, this includes the adoption of AI-driven commerce tools and enterprise-focused solutions.
In short, Shopify holds massive long-term potential for investors and should be one of the Canadian growth stocks on every investor’s radar.
Option #3: Dollarama
Last, but definitely not least, is Dollarama (TSX: DOL). Canada’s largest dollar store has always taken an aggressive stance on expansion. And now that the Canadian market has over 1,600 (and still growing) locations, the company has turned its attention to international markets.
Dollarama’s stake in Dollar City shows how the retailer’s growth-focused DNA can spread to other markets. Specifically, Dollarama has impressively expanded its presence in Colombia, Guatemala, El Salvador and Peru. The company is also ramping up its expansion into Mexico.
Outside of Latin America, Dollarama is also growing its presence in Australia. This follows the retailer’s acquisition of The Reject Shop in that market.
Dollarama plans to continue that growth, targeting 2,200 stores in Canada over the next several years. In Latin America, Dollarama is charging towards a network of over 1,000 stores by 2031. Finally, Dollarama sees its Australian operation hitting 700 stores within the next decade.
Oh, and let’s not forget that dollar stores are incredibly recession-resistant, making them interesting picks for any portfolio.
As of the time of writing, Dollarama is up 35% year to date. Despite that gain, Dollarama remains one of the Canadian growth stocks that every investor needs.
Buy these Canadian growth stocks while you still can!
No stock is without some risk, and that’s why the importance of diversifying can’t be stated enough.
In my opinion, the three Canadian growth stocks mentioned above can provide stellar long-term growth as part of a larger, well-diversified portfolio.
