ATD:CC - 3 Homegrown Canadian Stocks That Could Make You Richer
2023-08-07 11:00:00 ET
When looking for growth stocks, many investors opt to look internationally . However, there are some outstanding growth stocks in Canada. In fact, some of the homegrown stocks could have skyrocketed your portfolio had you been holding them over the past few years. In this article, I’ll discuss three homegrown Canadian stocks that could make you richer.
This is a top blue-chip stock
Constellation Software ( TSX:CSU ) is the first homegrown Canadian stock that investors should consider today. This company acquires vertical market software (VMS) businesses. It then provides the resources and coaching necessary to turn those acquisitions into exceptional business units. For much of its history, Constellation Software has focused on acquiring small- and medium-sized VMS businesses. However, in 2021 , the company began targeting large VMS businesses for acquisition.
It appears that Constellation Software hasn’t really seen many hiccups with regard to adding that new aspect of its business. Over the past year, Constellation Software stock has gained about 24%. To put that into perspective, the TSX has only gained about 3% over the same period. With its founder Mark Leonard continuing to lead the way, I remain very confident that Constellation Software could continue to generate outsized gains over the next few years.
One of my favourite picks for the next decade
With e-commerce sales on the rise, Shopify ( TSX:SHOP ) remains a top pick for growth investors today. This company offers merchants of all sizes with a platform and all the tools necessary to operate online stores. Because of the breadth of Shopify’s offering, everyone from the first-time entrepreneur to large-cap enterprises can find solutions to help their businesses.
Shopify has been a very polarizing stock over the past two years. From 2015 to 2021, this was one of the most prolific stocks in the country. At its peak, the stock grew more than 6,000% from its initial public offering. However, in 2022, the stock tumbled more than 80%. In addition, Shopify laid off more than 10% of its workforce, turning investor sentiment even sourer. However, over the past year, Shopify stock has gained nearly 50%. With e-commerce sales continuing to grow each year, I think Shopify could still grow a lot from here.
A company worth considering
Finally, growth investors should take a look at Alimentation Couche-Tard ( TSX:ATD ). For those that aren’t familiar, Alimentation Couche-Tard operates convenience stores. You may have heard of some of the other banners it operates under. This includes Circle K, Dairy Mart, Becker’s, and Winks, among others. Alimentation Couche-Tard is a massive company, operating nearly 14,500 locations across 24 countries and territories.
In the fourth quarter of 2023, Alimentation Couche-Tard announced that it had closed on an acquisition of Big Red Stores. This includes 45 locations across the state of Arkansas. Although it isn’t a massive acquisition, it does show investors that Alimentation Couche-Tard intends to grow its presence within the convenience store industry. That should bode well for its stock. Over the past year, Alimentation Couche-Tard stock has gained about 15%.
The post 3 Homegrown Canadian Stocks That Could Make You Richer appeared first on The Motley Fool Canada .
Fool contributor Jed Lloren has positions in Constellation Software and Shopify. The Motley Fool has positions in and recommends Alimentation Couche-Tard and Shopify. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy .
2023