In terms of top Canadian growth stocks that investors can consider adding exposure to right now and be comfortable holding for decades to come, I’d argue there are likely only a few top names to consider.
One of the top companies I’ve continued to pound the table on for years (even when it was beaten down in a post-pandemic decline, which saw similar stocks plunge) is Shopify (TSX:SHOP).
Shares of the Canada-based e-commerce platform provider have been on a tear of late. And notably, Shopify is now Canada’s largest company by market capitalization once again.
Here’s why I think that trend could continue, and make Shopify a darling not only in Canada but around the world.
Source: Getty Images
E-commerce growth shouldn’t be underestimated
Right now, most investors have their eyes focused squarely on the rise of artificial intelligence, machine learning, robotics, autonomous driving, and other technologies.
During the pandemic, the narrative around e-commerce companies was similar. With everyone locked away at home (and no inkling of when shutdowns would end), the thought was that the shift toward more online retail would be permanent. To a certain extent, this theory was correct.
I think the transition toward a multi-modal shopping experience for most brands will continue. And as most major companies look for ways to extend their offerings directly to consumers, Shopify should continue to benefit in the long term.
Investors looking outside the U.S. for growth
Another key factor I think is important to consider is that while Shopify is certainly far from a “cheap” stock, it’s much more attractive on a valuation basis than many of the mega-cap U.S. tech giants riding one of the aforementioned growth waves above.
This means that as Shopify quietly grows outside of the limelight, this company has greater upside over the long term (in my view), as I think investors will begin to home in on valuations more and more.
For investors who find themselves in such a bucket, now may be the time to add some exposure to Shopify. Personally, I’m waiting for more of a market event to jump in with both feet, but to each their own.
