Investing in Canadian growth stocks is easily one of the best ways to build wealth over the long run. These are the kind of businesses that can grow earnings, expand revenues, and deliver compounded growth to investors that beat the broader market over time.
However, not every growth stock is the same. While some might offer compelling returns with rapid turnarounds on profits, many also carry significant capital risk. As exciting as it might seem to look for high-growth potential stocks, prioritizing sustained wealth growth is critical to being successful with investing in growth stocks.
Today, I will discuss two resilient growth stocks you can own as part of your portfolio for retirement planning in Canada.
Dollarama
Dollarama Inc. (TSX:DOL) is a $52.6 billion market-cap Canadian company principally engaged in operating discount retail stores. Dollarama owns and operates thousands of locations within Canada. It also has a significant presence in Latin America through its controlling stake in the Dollarcity chain, and it is expanding into Australia.
As of this writing, the stock trades for $192.22 per share, up by 45.2% from its 52-week low, and it does not seem like it has a ceiling for growth. At current levels, it is up by 284.5% in the last five years. Its business model is simple but brilliant. By offering lower-priced alternatives for daily-use items, it provides relief to consumers looking to cut costs.
It might not make more than its peers per item, but it more than makes up for it in total sales due to attractive pricing. Dollarama stock looks well-positioned to continue delivering substantial long-term growth.
goeasy
goeasy Ltd. (TSX:GSY) is another brilliant long-term growth stock that meets a demand for consumers like Dollarama, but has a different approach. The $2.06 billion market-cap company is a financial services provider that offers alternative lending solutions for subprime borrowers. People who cannot qualify for loans from standard lenders rely on companies like goeasy to finance various necessities.
goeasy is one of the finest growth stocks you can buy right now. The alternative lending space has a lot of demand, and goeasy and its investors have benefited from it. The company keeps growing and remains profitable. As of this writing, goeasy stock trades for $129.16 per share, up by 9.9% from its 52-week low, and by 38.3% in the last five years.
Despite already growing its revenue and profitability, GSY stock might have more to offer. Analysts anticipate that the stock will grow its revenue by 12% in 2026 and expect its normalized earnings per share to jump by 25%. GSY might be a good stock to own at current levels.
Foolish takeaway
Buying and holding investments like Dollarama stock and goeasy stock for the long run can help you with your financial goals in retirement. Building a portfolio of high-quality growth stocks mixed with blue-chip stocks in a retirement account can offer sustainable wealth growth with tax advantages. To this end, DOL stock and GSY stock can be good holdings to consider.
