5 Canadian growth stocks to hold for the long haul

Highlights

• Growth companies focus on expanding their operations and increasing their earnings faster than others in the industry.
• Growth stocks can be an ideal investment option for some investors looking for significant returns or who want to see their money grow substantially with the company.
• As these companies do not pay a dividend, investors should consider the opportunity cost of investing their money. 

Growth companies focus on expanding their operations and increasing their earnings faster than others in the industry. These companies generally dedicate profit earned towards their future growth.

Growth stocks can be an ideal investment option for some investors looking for significant returns or who want to see their money grow substantially with the company.

On that note, let us explore five TSX-listed growth stocks for the long term.

1.    Shopify Inc (TSX:SHOP)

Shopify saw its revenue grow by 46 per cent to US$ 1.12 billion in the third quarter of fiscal 2021. The e-commerce company expects more merchants to join its platform, which can drive subscription solutions revenue and merchant service revenue up for 2021.

The SHOP stock closed at C$ 1,389.55 apiece on Monday, January 17.

Also read: 2 TSX stocks that returned over 100% in a year

2.    goeasy Ltd (TSX:GSY)

goeasy Ltd reported a net income of C$ 63.5 million in Q3 FY2021 compared to C$ 33.1 million a year ago. The company also provided its three-year forecasts from 2021 to 2023.

The financial service company continues to implement a long-term growth strategy by expanding its offerings and improving its distribution channel. The company is also focused on utilizing risk-based pricing, which improves the average loan size and enhances customer relationships.

Stocks of goeasy closed at C$ 167.90 apiece on January 17 and climbed over 60 per cent year-over-year (YoY).

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3.    Alimentation Couche-Tard Inc (TSX:ATD)

Alimentation Couch-Tard Inc generated net earnings of US$ 694.8 million in the second quarter of fiscal 2022. Alimentation Couch-Tard acquired 19 convenience stores and two non-operational properties in New Mexico from Pic Quik on December 20, 2021.

Stocks of Alimentation Couche-Tard closed at C$ 51.77 apiece on January 17 and rose by roughly 35 per cent in the past 12 months.

4.    Enbridge Inc (TSX:ENB)

Enbridge Inc recorded an increased adjusted EBITDA of C$ 3.3 billion in the third quarter of the fiscal year 2021, which was C$ 3 billion a year ago. The energy infrastructure company expects its full-year EBITDA to be somewhere between C$ 13.9 billion to C$ 14.3 billion in 2021.

The ENB scrip closed at C$ 52.48 apiece on January 17 and grew by over 17 per cent in the last 12 months.

5.    Canadian Tire Corporation (TSX:CTC)

Canadian Tire saw its revenue jump by 4.3 per cent YoY to C$ 188.8 million in Q3 FY2021. The retailer, which had a return on equity (ROE) of 24.84 per cent, saw its scrip close at C$ 324.03 apiece on January 17. The retail scrip galloped by 58 per cent in the last one year.

Bottom line

Investors might find growth stocks suitable to earn a significant profit. However, the future is uncertain, which makes these stocks risky. Also, as these companies typically do not pay any dividends, investors should consider the opportunity cost of investing their money. 

Also read: Enbridge (TSX:ENB) & Vermilion (TSX:VET): 2 oil & gas stocks to watch