When it comes to Canadian stocks, there aren’t a whole lot of names that stand out as game-changing. Indeed, American stocks tend to garner the most hype when it comes to innovative and disruptive companies. That said, I still think Canada’s high-growth scene is worth keeping tabs on as an investor. There are intriguing companies right here in Canada that may be able to offer a better bang for your buck than U.S. comparables.
In this piece, we’ll have a look at three TSX stocks that I think every Canadian investor should keep watch of now and in the years to come.
Shopify
Shopify (TSX:SHOP) is a stock that many Canadian investors should be very familiar with. It’s a disruptive e-commerce company that’s been using cutting-edge tech to thrive and fend off various competitors, many of which are based in the United States. Indeed, Shopify had more than its fair share of troubling times.
During the 2022 market selloff, Shopify crumbled, eventually losing more than 80% from peak to trough. Investors who chased got hurt. Now that the valuation has come in, I view SHOP stock as a must-watch stock that’s to be bought on any dips.
The macro picture has changed a bit, and though Shopify has reduced its workforce, the company itself is still making good use of tech to capture the growth opportunity at hand. Simply put, if you loved (and bought) Shopify stock at any time in 2021, you should be happy to keep buying at these depressed levels. The stock has had a run off lows, and though the rally may exhaust at some point, I’d not be afraid of averaging in now and in future dates.
Aritzia
Aritzia (TSX:ATZ) is a fashionable women’s clothing company that’s continuing to build brand affinity in Canada and, more recently, the United States. Though Aritzia has a wonderful business with the ability to command decent margins, it’s still a clothing company, meaning it could take a hit, as consumers put their wallets away in a recession.
Though Aritzia hasn’t clocked in any abysmal quarterly numbers (can you believe the firm actually beat on adjusted earnings per share (EPS) in four of the last four quarters?), the stock has been under considerable pressure for a few quarters now. I think recession fears are getting out of control.
Even if Aritzia does succumb to a Canadian recession, I think expectations are muted already and that the stock may not have as much room to the downside. The main reason to hold ATZ stock is the long-term growth potential.
Alimentation Couche-Tard
Alimentation Couche-Tard (TSX:ATD) stands out as one of the most attractive low-tech growth stocks, not only in Canada but North America. The company may be best known for growth by acquisition. The convenience retail scene is full of opportunity, and Couche has the dry powder to make great deals happen.
The company’s latest quarterly beat was impressive. Fiscal fourth-quarter EPS came in at $0.71, well above the $0.49 consensus estimate. What an incredible beat. Though shares rallied on the result, I think the numbers were far better than what the single-day surge suggested.
Growth is alive and well at Couche-Tard. As management keeps watch for opportunities on the merger and acquisitions front, I think it’s a mistake not to buy or watch the stock on any dips.
