Investors seeking top-notch growth stocks may be looking outside of Canada for such growth. Indeed, this strategy makes sense. So many hyper-growth stocks are available in international markets that it’s hard to focus on home-grown talent.
However, Canada happens to have some great growth stocks to consider. In this article, I’m going to discuss two of the best such plays.
Let’s dive in.
Top growth stocks: Restaurant Brands
One of the best reopening plays in Canada right now has to be Restaurant Brands International (TSX:QSR)(NYSE:QSR).
Indeed, this fast-food purveyor has taken a hit as a result of the pandemic. While shares of Restaurant Brands stock have recovered to some extent, there’s a ways to go for this company to hit its all-time highs above $100. That said, I think such a scenario is more likely than not over the medium term.
Well, Restaurant Brands is a world-class company with top-notch banners. These banners include Tim Hortons, Burger King, and Popeyes Louisiana Kitchen. The incredible growth potential of these brands domestically and internationally is impressive. Accordingly, I’m of the view that as soon as the global economy really reopens, Restaurant Brands should take off.
This is a company that has shown solid results of late, indicating growth is starting to turn around. I think more growth is around the corner for patient investors. Indeed, those with a time horizon of a decade or longer can’t go wrong owning Restaurant Brands stock. After all, this is a company that pays investors a 3.3% dividend yield to be patient. That’s pretty darn good.
Another one of the top growth stocks I’ve been watching of late is Spin Master (TSX:TOY). This toy maker has shown a strong ability to grow in both good times and in bad. Such a defensive posture for a consumer discretionary play is something I think is noteworthy.
Additionally, this company’s revenue mix has begun to change in a big way in recent quarters. Spin Master has been transitioning toward having a greater percentage of its revenue come from digital gaming. Through the launch of the company’s Toca Life World app, sales in this segment have grown at a triple-digit rate on a year-over-year basis for some time. I think more growth is on the horizon for this company in this segment.
Well, Spin Master has a world-class array of IP the company created in-house. This business model is difficult for competitors to replicate. Accordingly, this is a company with a meaningful moat, and I see it as a defensive growth play — that is, as defensive as consumer discretionary plays can get.
I think Spin Master has a number of verticals available to the company its peers simply don’t have. This is a company that’s proven it can monetize its offerings in an optimal way. Indeed, it’s hard to find a company so adept at doing so.
Accordingly, long-term investors seeking top growth stocks can’t go wrong with adding some exposure to Spin Master. This is a long-term gem trading at a reasonable valuation relative to its growth prospects today.
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 Spin Master Corp. The Motley Fool recommends Restaurant Brands International Inc.