As the world’s tenth-largest economy, Canada boasts a diverse market with significant potential for growth. While the country is often associated with natural resources and energy sectors, it also houses thriving technology, healthcare, and finance industries. This diversity, along with Canada’s stable political climate and solid economic fundamentals, makes it an attractive destination for investors seeking growth stocks.
Growth stocks represent companies expected to grow at an above-average rate compared to other companies in the market. These stocks can offer substantial returns, but they also come with higher risk. Therefore, it’s essential to conduct thorough research and consider your risk tolerance before investing.
Here, we highlight some of the best Canadian growth stocks to consider in various sectors. However, it’s crucial to note that the following information does not constitute financial advice. Always conduct your due diligence or consult with a financial advisor before making investment decisions.
Best Canadian Growth Stocks to Buy Right Now
1. Shopify (SHOP)
Shopify, a leading e-commerce platform used by businesses worldwide, is one of Canada’s biggest growth stories. With the rise of online shopping, accelerated by the COVID-19 pandemic, Shopify has seen exponential growth in its revenue and user base. The company continues to innovate by expanding its offerings beyond e-commerce, venturing into logistics with the Shopify Fulfillment Network and offering payment solutions with Shop Pay.
2. Constellation Software (CSU)
Constellation Software, a Toronto-based company, acquires, manages and builds vertical market software businesses. The company has grown impressively over the years, driven by its successful acquisition strategy and diversified portfolio of software companies. As digital transformation continues to drive businesses worldwide, Constellation Software’s growth trajectory looks promising.
3. Lightspeed POS (LSPD)
Lightspeed POS provides cloud-based point-of-sale platforms for small and medium-sized businesses, especially in the retail and hospitality industries. While the pandemic initially hit the company hard due to closures of physical stores and restaurants, Lightspeed quickly adapted and ramped up its e-commerce capabilities. As businesses start to rebound, Lightspeed’s integrated omnichannel approach positions it well for future growth.
4. Brookfield Renewable Partners (BEP.UN)
With the global focus on clean energy, renewable energy companies like Brookfield Renewable Partners offer significant growth potential. Brookfield owns and operates one of the world’s largest renewable power portfolios, diversified across hydroelectric, wind, solar and storage facilities. Given the global push towards sustainability and renewable energy, Brookfield Renewable Partners is well-positioned for long-term growth.
5. Ballard Power Systems (BLDP)
Ballard Power Systems is a global leader in fuel cell technology, providing clean energy products that reduce customer costs and risks, and helps customers solve difficult technical and business challenges in their fuel cell programs. As the world moves towards cleaner energy solutions, the demand for Ballard’s technology is expected to increase, making it an intriguing growth prospect.
6. goeasy Ltd. (GSY)
goeasy Ltd. is a Canadian company that provides non-prime leasing and lending services through its easy home and easy financial divisions. With a market that’s underserved by traditional financial institutions, goeasy has experienced consistent growth in its revenues and customer base over the years. Its blend of physical and online presence allows it to reach a wide range of customers, positioning it for further growth.
7. WELL Health Technologies (WELL)
WELL Health Technologies operates in the promising telehealth sector. The company has developed a digitized platform to provide telehealth services, improving access to healthcare for patients and making operations more efficient for healthcare providers. With the recent acquisitions and partnerships, WELL Health is expanding its reach both domestically and internationally. The rapid adoption of telehealth services, further accelerated by the pandemic, offers significant growth potential for WELL Health.
8. Dye & Durham (DND)
Dye & Durham provides cloud-based software and technology solutions designed to improve efficiency and increase productivity for legal and business professionals. The company has a strong track record of growth, largely driven by strategic acquisitions. As businesses continue to digitalize their operations, the demand for Dye & Durham’s efficient and secure solutions is likely to increase, offering solid growth prospects.
9. Real Matters (REAL)
Real Matters is a technology company that provides services for the mortgage lending and insurance industries. Despite facing challenges due to the pandemic, the company remains well-positioned for future growth due to the recovering real estate market, low-interest-rate environment, and the shift towards digital solutions in the mortgage industry.
10. Kinaxis (KXS)
Kinaxis provides supply chain management and sales and operation planning software. Amid the pandemic, many businesses realized the importance of resilient and flexible supply chains, leading to increased demand for Kinaxis’s solutions. As more companies look to improve their supply chain management, Kinaxis stands to benefit, making it an attractive growth stock.
11. Nuvei (NVEI)
Nuvei is a payment technology partner providing both online and in-store payment solutions for merchants of all sizes. Nuvei has shown impressive growth, driven by the shift toward digital payments and the global expansion of e-commerce. The company’s broad range of services and ability to process transactions in many different currencies and payment methods make it a compelling choice in the payment processing space.
Conclusion
The Canadian market offers a host of opportunities for investors seeking growth stocks. The stocks discussed here represent a diverse range of sectors, from technology to renewable energy to healthcare. While these stocks have shown impressive growth and hold promise for the future, they also carry risks.
Remember, investing in growth stocks should be part of a balanced and diversified investment strategy tailored to your financial goals and risk tolerance. It’s crucial to do thorough research, stay informed about market trends, and consider seeking advice from financial professionals. Happy investing!
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