Growth stocks are known for their potential to generate significant wealth for investors over time. The TSX has a number of strong growth stocks that have consistently outperformed the benchmark index. Here are four Canadian stocks that are likely to see rapid growth and outperform the broader markets:
1. goeasy (TSX:GSY) is a financial services company that has been rapidly growing its revenue and earnings. Its revenue and earnings per share have seen impressive compound annual growth rates, driving its share price higher. goeasy has delivered a return of 1,223% in the past 10 years and has consistently increased its dividend over the past decade. The company’s strong position in the subprime lending market, diverse funding sources, and solid credit underwriting capabilities are expected to continue driving its growth.
2. Constellation Software (TSX:CSU) is a leading Canadian tech company with a diversified portfolio of software businesses. The company has seen a CAGR of 29.6% in the last five years, with a capital gain of about 267%. Constellation Software’s strategy of acquiring and integrating small- to mid-sized vertical market software companies has been successful in driving its financials and supporting its stock performance.
3. Celestica (TSX:CLS) is a top growth stock that provides innovative supply chain solutions in sectors like artificial intelligence and vehicle electrification. The company has gained nearly 313% in one year and has a CAGR of 54.73% over five years. Celestica is well-positioned to benefit from the increasing adoption of AI computing and electric vehicles, presenting solid growth opportunities in the long run.
4. Shopify (TSX:SHOP) is another top Canadian stock with strong growth potential. Despite a recent pullback, the company is strategically positioned to benefit from the ongoing digital transformation. Shopify’s focus on omnichannel platforms, cost-reduction measures, and integration of AI technology into its offerings are expected to drive substantial revenue growth and sustainable earnings growth. The company’s competitive positioning in the e-commerce space and focus on innovative product launches are likely to support its financials and share price in the long term.