Last week, the Labor Department reported that the United States’s Consumer Price Index fell 0.1% in June compared to May, marking the first month-on-month decline in over four years. This decrease in inflation has sparked optimism among investors, who believe that the Federal Reserve may cut its benchmark interest rates sooner rather than later. As a result, the S&P/TSX Composite Index rose by 0.6% on Friday and is currently trading 3.7% higher for the month.
In light of this positive sentiment among investors, here are three top Canadian growth stocks to consider:
Dollarama (TSX:DOL) is a discount retailer that has seen impressive returns of 778% over the last 10 years, with an annualized rate of 24.2%. The company’s aggressive expansion and strong underlying business have driven its financial performance, leading to growth in its stock price. By adopting a direct sourcing method and improving its logistics, Dollarama has been able to offer products at attractive prices, resulting in healthy same-store sales even during challenging economic conditions.
Furthermore, Dollarama has significantly increased its store count, revenue, and net income over the years. The company plans to continue expanding its store count in the future, which could further boost its financial performance. With its subsidiary Dollarcity also planning to increase its store count, Dollarama presents a solid growth opportunity for investors.
Another promising growth stock is goeasy (TSX:GSY), a company that offers leasing and lending services to subprime customers. Over the past five years, goeasy has achieved consistent revenue growth and has enhanced its profitability through improved underwriting processes and credit models. The company has also rewarded its shareholders with a steady increase in dividends over the years.
Lastly, Waste Connections (TSX:WCN) is a waste management company that has delivered impressive returns of around 645% over the last 10 years. Through strategic acquisitions and organic growth initiatives, Waste Connections has strengthened its financial position and stock price. The company is now focusing on organic growth and returning capital to its shareholders, with plans to construct renewable natural gas facilities that could contribute significantly to its EBITDA in the future.
Overall, these three Canadian growth stocks present attractive opportunities for investors looking to capitalize on the current market conditions and potential for future growth.