Trying to find long-term portfolio winners in today’s investing environment may be easier said than done. Indeed, valuations remain elevated for many of the top growth stocks investors pay most attention to. But outside of a few deep value stocks, finding the right mix of growth and value (what some call “growth at a reasonable price”) is really what I’m after.
In that light, here are three growth stocks which are among my top ideas in the market right now. Each of these companies is based in Canada, but provides plenty of international exposure. So, for investors looking for a well-balanced portfolio, here are three ideas that may be worth exploring.
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Shopify
As a leading Canadian growth stock that fits in most investor portfolios (for those seeking long-term capital appreciation), Shopify (TSX: SHOP) is one of those unique opportunities I think is poised for a nice rally in the years to come.
Looking at Shopify’s stock price chart above, it’s clear that some investors agree with this view. The e-commerce platform provider has seen its valuation remain well below its post-pandemic highs, and there’s still plenty of work to do for this stock to move back above the $200 level.
But I think the strong secular trends underpinning Shopify’s growth (namely, a shift toward e-commerce as a standalone strategy and as part of an omnichannel move for many retailers) is likely to pay off. For those with an investing timeline of a decade or longer, this is one stock that looks attractively priced based on its future growth potential.
Alimentation Couche-Tard
Alimentation Couche-Tard (TSX: ATD) is a difficult stock to put in one specific bucket. From a long-term growth perspective, the company has certainly provided investors with plenty of upside, as the chart below shows. But there’s also an argument to be made that Couche-Tard could be a value stock, given this name currently trades at a forward price-earnings ratio of around 16 times.
That’s cheap for most companies in even more stable or “boring” sectors of the economy. But given Couche-Tard’s ability to grow at a faster rate than the market over a period of decades, this is a company I think looks compelling at its current valuation. With a nominal dividend yield of 1.1%, this is a stock that checks all the boxes as a total return play worth considering.
BYD Group
Last on this list of growth stocks topping my watch list right now is none other than BYD Group (TSX: BYD).
This is a company I’ve touted as a solid long-term growth stock worth accumulating. But as the chart above shows, that thesis has grown even stronger in recent months as the company’s share price has dropped roughly 35% from its recent all-time high seen earlier this year.
I’m of the view that BYD’s long-term growth catalysts remain firmly in place. As a leading North American autobody repair giant, BYD has grown over the years by consolidating this fragmented sector. And with thousands of small family-owned chains likely preparing to be acquired in the years to come (as the next generation looks to pursue other opportunities), this is a stock I think could provide meaningful upside to investors bullish on this trend.
