- Investment in growth stocks is generally aimed to build financial wealth in the long haul.
- The idea is to park your funds in a growing company so that over a period of time, as the enterprise reaches new business heights, your investment grow too.
- Growth investors believe that such companies have capabilities to outperform the industry or sector standards and, thus, can deliver capital profits in the future.
Investment in growth stocks is generally aimed to build financial wealth in the long haul. The idea is to park your funds in a growing company so that over a period of time, as the enterprise reaches new business heights, your investment grow too.
Growth investors believe that such companies have capabilities to outperform the industry or sector standards and, thus, can deliver capital profits in the future.
On that note, let us explore some top Canadian growth stocks of 2021.
1. Constellation Software Inc (TSX:CSU)
Constellation Software Inc, on November 25, formed a venture capital fund to finance start-ups and promote the organic growth of its vertical market software business.
The Canadian software giant recorded revenue of US$ 1.29 billion in the third quarter of fiscal 2021, a rise of 30 per cent on a year-over-year (YoY) basis. Its cash flows from operations rose by 25 per cent YoY to US$ 292 million in the latest quarter.
Constellation is also set to pay a quarterly dividend of US$ 1 apiece on January 11, 2022.
CSU stock soared by almost 32 per cent in 2021. The software stock clocked a day high of C$ 2,248 on Thursday, December 9 and closed at C$ 2,178.34 apiece.
2. Altus Group Limited (TSX:AIF)
Altus Group Limited inked a definitive agreement to acquire Reonomy’s artificial intelligence (AI)-based data platform, Scryer Inc. This acquisition is expected to strategically strengthen its data and analytics capabilities in the commercial real estate industry.
In Q3 FY2021, the real estate service company generated a revenue of C$ 151.8 million, a YoY increase of 12.5 per cent. Its bookings valued at C$ 20.5 million was up by 81.6 per cent YoY in the third quarter of 2021.
Stocks of Altus Group delivered a year-to-date (YTD) gain of almost 39 per cent. The real estate stock closed at C$ 68.23 apiece on December 9, up by about four per cent from the previous close.
3. Descartes Systems Group Inc (TSX:DSG)
Descartes Systems Group reported revenues of US$ 108.9 million in the third quarter of fiscal 2022, a YoY growth of 24 per cent. Its net income amounted to US$ 25.5 million in Q3 FY2022, a YoY increase of 92 per cent.
The Waterloo, Ontario-headquartered software provider to the shipping industry saw its stock close at C$ 98.15 apiece on December 9, down by over three per cent. The software stock ascended by nearly 32 per cent so far this year.
4. WSP Global Inc (TSX:WSP)
WSP Global Inc saw its revenue grow by 24 per cent YoY to C$ 2.7 million in the third quarter of FY2021. Its adjusted EBITDA also surged to C$ 377.7 million in Q3 FY2021, up by 27.1 per cent from the prior-year quarter.
The Montreal-based constructor is expected to pay a quarterly dividend of C$ 0.375 apiece on January 15.
Image source: © 2021 Kalkine Media
Data source: WSP Global Inc
On December 9, the construction stock closed at C$ 179.70 apiece, slightly up from its previous close. It mounted by approximately 49 per cent YTD.
5. FirstService Corporation (TSX:FSV)
FirstService Corporation recorded total revenues of US$ 849.4 million in Q3 FY2021, a YoY jump of 14 per cent, which also included organic growth of eight per cent.
In the third quarter of fiscal 2021, the firm also posted adjusted EBITDA of US$ 94.2 million, up by six per cent on a YoY basis.
The real estate firm is also scheduled to pay a quarterly dividend of US$ 0.182 apiece on January 7 next year.
FSV stock spiked by about 41 per cent on a YTD basis. On December 9, it closed at C$ 245.75 apiece, down by nearly one per cent.
Growth companies are generally focused on improving their operational efficiency and expanding their business footprints. Such stocks can help investors earn substantial profits and make them financially stable in the long term.