What’s up guys, it’s wiz.
Welcome back to the channel. If you are new, I am a Canadian investor. I cover a whole lot of information about investing in Canada and do research into our Canadian market. I dive into growth investing, dividend investing and Canadian small caps / penny stocks. Today, I will be quickly going over three growth stocks. I think it’s good to go over Canadian growth stocks in this current market, I always believe in the long term upward trend of the market. These companies could see some big returns in the future. For new investors, you need to join Wealthsimple Trade if you are looking to start investing and live in Canada. If you use my link in the description to join Wealthsimple, you get 2 free stocks worth up to 4500$ so do not miss out.
Growth investors have seen a lot of red in their portfolios over the past few months. Many of the most popular growth stocks have seen declines of 50% or more since the start of the year. With that in mind, many investors may be thinking that it’s time to start moving away from these stocks. On the contrary, I think it’s an excellent opportunity to pick up shares at a massive discount. There are a number of great deals in the stock market at the moment, and it is to your benefit to try and locate the one with the most potential in the long term. Market trends upwards, and always will. We saw a bearish market at the start of the pandemic and then from there, the market hit record highs, and we will see it again after this current market, the bull run we will see will be no different. This is exactly why it is a very good idea to try and pick up growth stocks at a discount right now.
The first Canadian growth stock is Shopify (ticker symbol SHOP). Since the start of the year, the stock has gone on to fall about 70%. Although that seems like a really bad pick on the surface, Shopify’s business continues to grow at an impressive rate. One reason that Shopify’s value has decreased as much as it may be due to the rising interest rates. As interest rates increase, it makes it much more difficult for growth stocks to borrow money and fund company expansion. That could result in slower growth. However, the fact of the matter is that Shopify has already become a very profitable company. It has the ability to grow using the money it makes from its business. A huge leader in the global e-commerce industry, I’m confident that Shopify will continue to be a great stock to hold over the coming decade.
Next is another play on the e-commerce industry. As far as growth stocks go in the long term, I’m very bullish on the tech and e-commerce industry. With millennials and Gen Z consumers continuing to push the industry forward, I’m confident that online sales will continue to reach new highs in the coming years. One area that investors should consider looking at is the online grocery market. More and more consumers are starting to buy groceries online in a move that was largely sparked by the lockdowns imposed over the course of the pandemic. The second Canadian growth stock is Goodfood Market (ticker symbol FOOD). A leader within the Canadian meal kit industry, Goodfood operates in all 10 Canadian provinces. It has started to bring same-day deliveries to many of its major markets, which is sure to bring more traffic to its platform. Goodfood stock hasn’t performed very well for much of the past year, but if you’re interested in the e-commerce space, then this stock may be right for you and I am positive towards its growth in the future.
We’ve covered a large-cap and a small-cap stock so far. Now, it’s time to target a Canadian mid-cap stock. These are companies that are valued between $2 billion to $10 billion. Of all the stocks trading in that valuation range, my top pick has to be Topicus.com (ticker symbol TOI). A former subsidiary of Constellation Software, Topicus operates a similar business. It’s an acquirer of vertical market software companies, focusing on the European tech industry. What interests me in this company is its close ties to Constellation Software. Although it’s difficult to assume that Topicus can perform as well as Constellation Software has since its IPO, it certainly has a chance. Topicus operates in a highly fragmented industry and has a proven playbook that it can use to guide its growth. It is a great Canadian tech stock to add to the watchlist.
Hope you guys enjoyed this quick video about 3 Canadian growth stocks and what my future outlook for the market is. Please watch my previous videos on Canadian stock recommendations and let me know of any Canadian stocks you want me to look into and give my opinion on. Let me know in the comments, since I really want to expand my knowledge in the Canadian market, and you also expand your own knowledge by asking questions. If you did enjoy this video, leaving a like really helps grow the channel! Thanks for watching, I’ll see you guys in the next video!