Investors seeking long-term growth have come to the right place. Indeed, the TSX happens to have a number of excellent options for investors to choose from. In this article, I’m going to highlight three companies with excellent historical performance that are well positioned to continue this trajectory in the future.
Let’s dive in.
Growth stocks: Restaurant Brands
Restaurant Brands (TSX:QSR)(NYSE:QSR) is a company I’ve been pounding the table on of late. And for good reason. This company offers an attractive risk/reward scenario as a reopening play. At the same time, Restaurant Brands provides a level of defensiveness as a result of its core banners that is almost unprecedented.
The fast-food space is one that I think remains a steady growth sector for long-term investors to consider. When we’re through the end of this pandemic, I think Restaurant Brands’s growth rates will far exceed the company’s historical performance. We’re all looking to get out of the house, even if that means going for a sit down at Tim Hortons to meet up with friends.
Popeyes is the key growth banner I’m keeping an eye on right now. Indeed, this banner’s sales growth has been impressive, and I expect Popeyes to make up a bigger percentage of the company’s total business over time.
Investors looking for a stable 3.4% yield have it in Restaurant Brands today.
Perhaps the number one growth stock on most investor’s lists has to be Shopify (TSX:SHOP)(NYSE:SHOP). Indeed, this technology gem has delivered mouth-watering gains during its six-year history of being publicly traded.
I think more of the same is on the horizon for investors long term. Shopify has continued to dominate the e-commerce sector in terms of growth, providing triple-digit year-over-year growth this past quarter. While many have called the end to Shopify’s growth, the company continues to vastly outperform expectations.
Indeed, some concerns around valuation risk are warranted with Shopify. It’s a company trading at a valuation that’s in the stratosphere. However, it’s a stock that’s expensive for a reason. Accordingly, investors looking for quality growth plays in tech are likely to continue gravitating toward companies like Shopify.
Constellation Software (TSX:CSU) is one stock that always occupies a place when talking about growth stalks. And indeed, it has the performance to back it up. Not many stocks can match Constellation’s growth over the last 10-15 years. Its business model of growth by acquisition is tremendously successful, thanks to a highly efficient management team.
With over 500 M&As under its belt, it is one of the best consolidators in the U.S. software market.
With over 10,000 small-cap software companies in this market, Constellation Software has plenty of options to choose from. A 9,350% rise in its stock prices year to date and a CAGR of 38.57% only reiterate my stance on this stock.
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.
Fool contributor Chris MacDonald has no position in any stocks mentioned in this article. The Motley Fool owns shares of and recommends Constellation Software and Shopify. The Motley Fool recommends Restaurant Brands International Inc. and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.