As a growth investor, I need to constantly consider which stocks provide the best opportunities for growth. Failing to do so will greatly diminish my portfolio’s returns. Although there are many great growth stocks available to Canadians, three companies have always stood out to me. I foresee myself continuing to buy these stocks over time.
Which three companies will I keep buying?
This company may truly be Canada’s top growth stock
I believe the greatest secular trend occurring around the world right now is the shift towards online commerce. Consider how often you purchased goods online just a few years ago. There’s a good chance that you use online shopping methods much more often today. That’s true for many Canadians, due in large part because of the COVID-19 pandemic.
Shopify (TSX:SHOP)(NYSE:SHOP) is one of the companies responsible for helping make this shift toward online commerce possible.
Shopify provides merchants with a platform and all the tools required to operate online stores. The company targets a very wide range of customers from first-time entrepreneurs to large-cap companies. This gives Shopify a very large addressable market, which will give it every opportunity to continue growing.
Although Shopify stock has already gained more than 5,500% since its initial public offering, I believe its best days are still ahead.
The world is shifting to increased digitization
Over the past two decades, the world has seen a drastic shift to digitization. We can see the results of this shift in the companies that have emerged recently, which offer cloud-based solutions for payroll, accounting, taxes, and more. In the employee training space, Docebo (TSX:DCBO)(NASDAQ:DCBO) stands out as an industry leader.
Using its cloud-based, AI-powered eLearning platform, training managers can assign, monitor, and modify training exercises more easily.
Docebo has been an impressive company since its inception, winning numerous industry awards. Recently, the company has impressed in different ways. For example, businesses are now able to access the Docebo platform using Salesforce.
The company has also won a multi-year partnership with Amazon to power AWS Training and Certification offerings worldwide. Docebo has already managed to penetrate the global market, despite being a smaller company and a recent IPO. It could still grow a lot from here.
This company will help power the world
In recent years, clean energy has been a focal point for many governments and businesses. This was evident when President Joe Biden made it a focus during his presidential campaign when he promised to invest $400 billion over 10 years into clean energy.
With that in mind, I believe one renewable energy company stands out above its peers: Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP).
Brookfield Renewable operates a diversified portfolio of assets capable of producing 21,000 megawatts of power. The company plans to continue investing in new projects to increase its production in the coming years.
In terms of investment returns, shareholders should be very happy with this stock. Brookfield Renewable has returned 19% on an annualized basis since its inception. That exceeds the company’s long-term goal of producing 12% to 15% annualized returns to shareholders.
With massive tailwinds behind it, I believe Brookfield Renewable has a lot more growth ahead.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Jed Lloren owns shares of Brookfield Renewable Partners, Docebo Inc., and Shopify. The Motley Fool owns shares of and recommends Amazon, Docebo Inc., Salesforce.com, and Shopify. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2023 $1,140 calls on Shopify, short January 2022 $1,940 calls on Amazon, and short January 2023 $1,160 calls on Shopify.