5 Canadian growth stocks to hold for the long haul

January 18, 2022 10:57 AM EST | By Kajal Jain
Follow us on Google News:

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).

5 TSX growth stocks to hold the long haul

 Image source: ©2022 Kalkine Media®      

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


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK