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Highlights
- A growth-oriented investment strategy targets stocks that can outperform the market and industry.
- People invest in a growth company believing that it can become a big deal in the coming years and holding on to such a stock for the right amount of time can fetch them market-beating returns.
- A financial service stock mentioned below rocketed by roughly 112 per cent year-over-year.
A growth-oriented investment strategy targets stocks that can outperform the market and industry. People invest in a growth company believing that it can become a big deal in the coming years and holding on to such a stock for the right amount of time can fetch them market-beating returns.
Noting the potential of growth stocks, let us discuss five TSX-listed growth stocks in Canada.
1. goeasy Ltd (TSX:GSY)
goeasy Ltd, which had a return on equity (ROE) of 40.88 per cent, offers a wide array of financial solutions to its users through an omni-channel model across Canada.
The Mississauga-based financial service provider posted total loan originations of C$ 436 million in Q3 FY2021, a year-over-year (YoY) increment of 52 per cent.
The financial stock, which had a price-to-earnings ratio of 11.40, closed at C$ 176.74 apiece on Tuesday, January 4, returning over 83 per cent in the past year.
Also read: How to find the best Canadian growth stocks?
2. Galaxy Digital Holdings Ltd (TSX:GLXY)
Galaxy Digital Holdings Ltd operates in the digital asset world. Headquartered in New York City, Galaxy Digital provides diversified financial and investment solutions based on technology directly to clients and institutions.
The financial service firm, which had an ROE of 106.37 per cent, recorded a net comprehensive income of US$ 517 million in the third quarter of fiscal 2021, up by 1,146 per cent YoY.
Stocks of Galaxy Digital Holdings closed at C$ 23.59 apiece on January 4. The financial service stock rocketed by roughly 112 per cent YoY.
3. Shopify Inc (TSX:SHOP)
E-commerce platform company Shopify posted a 46 per cent revenue increase in Q3 2021 compared to the previous year. Its total revenue increased to US$ 1.12 billion in the latest quarter.
The internet infrastructure provider promoting commerce and trade saw its scrip close at C$ 1,552.23 apiece on January 4. The e-commerce scrip swelled by over 11 per cent in the last year.
4. Descartes Systems Group Inc (TSX:DSG)
With a market capitalization of C$ 8.3 billion, Descartes Systems Group Inc reported revenue of US$ 108.9 million in the third quarter of FY2022 compared to US$ 87.5 million a year ago.
The technology-driven supply chain company, which had a P/E ratio of 85.40, saw its stock close at C$ 98.06 per share on January 4. Its stock delivered a one-year gain of almost 33 per cent.
5. Spin Master Corp (TSX:TOY)
Toronto-headquartered entertainment and gaming company Spin Master Corp posted a YoY rise of 25 per cent in its total revenue, which was US$ 714.5 million in Q3 FY2021.
Spin Master Corp saw its stock close at C$ 48.43 apiece on January 4, giving a YoY return of over 74 per cent.
Image source: ©2022 Kalkine Media®
Bottom line
Investors should mind that growth stocks, like any other stock, are exposed to market dynamics and future uncertainty, making them risky. However, balancing risk and reward can help investors take the right investment decisions.
Also read: 9 solid Canadian stocks with sound financials to buy in 2022
