Unlocking Fortunes: Canada’s Hottest Stocks for Explosive Growth

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If you wish to make it big in the stock market, then it’s imperative that you turn to growth stocks. These stocks have much greater potential for massive returns compared to dividend stocks. However, they also come with more risk. However, if you’re prudent in choosing the right stocks, then it’s possible that you could be walking away with massive gains over the next decade or so. In this article, I’ll discuss three stocks I’d choose in order to build my fortune. I think they could see explosive growth over the coming years.

This is my top growth stock

If I could only invest in one growth stock today, it’d be Constellation Software (TSX:CSU). In my opinion, this is one of the greatest stocks in Canada. Many investors who are new to the stock market may not be familiar with this company because it doesn’t operate a consumer-facing business. In fact, Constellation Software is the star behind the scenes. It looks for strong vertical market software (VMS) businesses and then provides the resources necessary to turn those acquisitions into exceptional business units.

Since its initial public offering (IPO), Constellation Software has gained an incredible 15,600%. If you had invested $10,000 around the time of its IPO, you’d be a millionaire today. Despite those outstanding gains, Constellation Software doesn’t seem to be slowing down whatsoever. Year to date, this stock has gained 35%. If you’re looking for a stock that could help build your personal fortune, look no further than Constellation Software.

An underappreciated company

When it comes to growth stocks, Alimentation Couche-Tard (TSX:ATD) may not be a name that comes up very often. However, I think it should. If you’re not familiar with this company, you should know that it’s a much bigger company than you think. Alimentation Couche-Tard is known for its flagship Couche-Tard and Mac’s convenience stores. However, it also operates under a plethora of different banners. This includes Circle K, On the Run, Daisy Mart and many more.

All considered, Alimentation Couche-Tard operates nearly 14,500 locations across 25 countries and territories. The company estimates that it serves about 8.5 million customers per day. Year to date, this stock has gained about 22%. Although that may not seem like an incredible result, keep in mind that the TSX has gained just 6% year to date. Over the past five years, Alimentation Couche-Tard’s returns total about 124%.

One of the biggest names around

When it comes to growth stocks, there are so few companies that can compete with Shopify (TSX:SHOP) in terms of global reach. This massive company is relied upon by more than one million merchants around the world. Because it offers such a wide range of solutions, Shopify is capable of catering to everyone from the first-time entrepreneur to large-cap enterprises.

Last month, Shopify announced its second-quarter earnings. In that report, the company stated that it had accumulated US$1.7 billion in revenue in that quarter. That represents a 31% year-over-year increase in that metric. In addition, the company has managed to maintain its 10% share of the massive American e-commerce space. Results such as this could give investors even more confidence in this stock. Year to date, Shopify stock has gained about 74%.

The post Unlocking Fortunes: Canada’s Hottest Stocks for Explosive Growth appeared first on The Motley Fool Canada.

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Fool contributor Jed Lloren has positions in Constellation Software and Shopify. The Motley Fool has positions in and recommends Alimentation Couche-Tard and Shopify. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.