When it comes to investing, there’s no question that one of the best ways to build long-term wealth is by finding high-quality Canadian stocks with years of growth potential to buy and hold for the long haul.
And while finding stocks that can triple in five years sounds easier said than done, that doesn’t mean that you have to take on a ton of risk or buy something super speculative. In reality, the best long-term growth stocks are usually just really strong businesses that keep executing and growing over time.
These are companies that are consistently expanding into new markets, improving their profitability, and continuing to compound their earnings year after year. That consistent growth of their operations is what drives stock prices higher and sustains those prices over the long haul.
So, with that in mind, if you’re looking for high-quality Canadian growth stocks that could potentially triple over the next five years, here are three of the very best picks that stand out right now.
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One of the most impressive Canadian growth stocks to buy now
When it comes to high-quality Canadian growth stocks that can triple in just half a decade, there’s no question that Aritzia (TSX:ATZ) is one of the top picks to consider.
In fact, it’s already gained 289% over the past five years, nearly quadrupling, and continues to have impressive prospects for growth going forward.
There’s no question that Aritzia is one of the best growth stocks in Canada, and a big reason for that is how much runway it still has in the U.S.
While the brand is already well established in Canada, it’s still in the early stages of expanding south of the border. In addition, though, Aritzia’s e-commerce business has also grown significantly and now makes up a meaningful portion of revenue.
Therefore, as Aritzia continues to scale, that mix of online and in-store sales helps drive higher customer spending and loyalty.
So, if you’re looking for a top Canadian growth stock that could potentially triple in just five years, Aritzia is certainly one of the top picks to consider.
A rapidly growing financial stock
In addition to Aritzia, another high-potential Canadian stock that’s flying under the radar for most investors is Propel Holdings (TSX:PRL).
Propel is a small, $740 million company that focuses on non-prime lending, but what makes it different is how it uses technology.
Its proprietary platform uses data and AI to assess credit risk more effectively, which allows it to serve customers that traditional banks often avoid, while still managing risk.
That gives Propel access to a massive market, especially in the U.S., where it’s been expanding aggressively. The U.S. opportunity alone is significantly larger than Canada, and the company continues to grow its market share as it increases its presence.
On top of that, Propel has started shifting toward more of a capital-light model by offering its technology to other financial institutions. That’s important because it can drive higher margins over time and make the business more scalable.
Plus, on top of the significant growth potential Propel has over the next half decade, the stock is also trading more than 50% off its 52-week high, and at a forward price-to-earnings ratio of just 6.6 times today, making now the perfect entry point for long-term investors.
A top defensive growth stock to buy and hold for years
Lastly, WELL Health Technologies (TSX:WELL) is another Canadian growth stock that has a ton of long-term potential, especially as healthcare continues to become more digital.
The business started as a telehealth and technology business but has shifted in recent years by acquiring outpatient clinics across Canada. In fact, it’s now the largest owner/operator of these clinics in Canada.
Therefore, WELL has significant growth potential as it continues to acquire more clinics and scale costs, significantly boosting profitability.
It also intends to spin out some of its digital health businesses to unlock more value for shareholders.
So, given WELL’s long-term growth potential and the fact that it continues to trade so cheaply, there’s no question it’s one of the best Canadian growth stocks to buy now.
