Investors who dismiss Canadian high-growth stocks may overlook substantial opportunities. Companies like Shopify (TSX:SHOP), Dollarama (TSX:DOL), and Brookfield Asset Management (TSX:BAM) have demonstrated resilience and robust performance, even amid market fluctuations. Especially in today's tumultous market, these names keep coming back again and again. So let's get into the benefits of buying up each one of these Canadian stocks.
Shopify
Shopify, a leading e-commerce platform, reported impressive third-quarter results in 2024. Revenue increased by 26% year-over-year to $2.2 billion, surpassing analyst expectations. Gross merchandise volume (GMV) also rose by 24% to $69.7 billion, thus indicating strong consumer engagement. Net income climbed to $828 million, or $0.64 per share, exceeding forecasts.
The Canadian stock anticipates fourth-quarter revenue growth in the mid- to high-20% range, thus reflecting confidence in its ongoing expansion. Shopify's strategic shift towards attracting larger enterprises, such as Reebok and Barnes & Noble, aims to sustain rapid growth and provide steadier revenue streams. This move requires significant investment in dedicated sales teams and complex onboarding processes. Yet it also positions Shopify to support larger businesses as they scale.
Dollarama
Dollarama, Canada's discount retail giant, has capitalized on consumers' demand for affordable products. In the third quarter 2024, the Canadian stock achieved a 5.7% increase in net sales to $1.6 billion.
Net earnings per share grew by 6.5% to $0.98 cents, matching analysts' expectations. The slight decrease in gross margin to 44.7% from 45.4% last year was due to higher logistics and freight costs. Dollarama reiterated its annual comparable store sales forecast and continues to drive customer engagement through themed holiday sales.
The Canadian stock's ability to attract price-conscious consumers seeking discounted non-essentials like household supplies and groceries underscores its resilience in various economic climates. Dollarama's strategic positioning in the discount retail market has enabled it to maintain steady growth and profitability.
Brookfield Asset Management
Brookfield Asset Management, a global alternative asset manager, announced record third-quarter results in 2024. Fee-related earnings increased by 14% year-over-year to $644 million, while fee-bearing capital grew by 23% to $539 billion.
The firm's net income rose to $129 million from $122 million the previous year. Brookfield continues to extend its leadership in sectors like energy transition, artificial intelligence (AI) infrastructure, and private credit, thus positioning itself for sustained earnings growth.
The Canadian stock's strategic initiatives, including partnerships with leading managers such as Castlelake and SVB Capital, have bolstered its asset management capabilities. Brookfield's expansive portfolio and global presence underscore its significant role in the asset management industry.
Bottom line
These Canadian stocks exemplify the potential within Canadian high-growth stocks. Shopify's innovative e-commerce solutions, Dollarama's strategic positioning in the discount retail market, and Brookfield's expansive asset management portfolio all contribute to robust performance. Investors focusing solely on potential downturns may overlook the growth trajectories these firms offer.
Altogether, while market volatility can be concerning, it's essential to recognize the strengths and growth prospects of companies like Shopify, Dollarama, and Brookfield Asset Management. Recent performances suggest that Canadian high-growth stocks can present valuable opportunities for investors, especially those willing to look beyond short-term market fluctuations.
