The Smartest Growth Stock to Buy Right Away With $5,000

In a market in which most top growth stocks are continuing to outperform, I’d argue that most investors who threw darts at a board a decade ago are likely sitting pretty. Indeed, there have been some collapses among top growth stocks. But for the most part, the best operators in their respective sectors continue to post solid gains.

We’ll have to see how 2026 ultimately shapes up. However, I’m of the view that companies like Shopify (TSX:SHOP) with some of the best growth profiles in the high-growth e-commerce sector could continue to outperform.

Here’s why I think investors looking to put the next $5,000 to work in a TFSA or brokerage account may want to consider Shopify as the way to do so.

Solid growth at a reasonable price

Few Canadian tech companies have the kind of scale and earnings growth potential as Shopify. However, given the fact that Shopify has seen its price-earnings ratio actually decline in recent years as its revenue growth has remained in the mid-30% range is notable. This past quarter, the company’s revenue surged 32% on a year-over-year basis to a record high, driven by gross merchandize value (GMV), which also surged by that same percentage.

That’s impressive growth, and much higher than the approximately 10% growth we saw in the e-commerce space overall. What’s perhaps most notable about Shopify’s recent results is that the company’s solutions revenue (its services side of the business) actually grew faster at a 38% clip. Importantly, this sector also represents around three-quarters of the company’s total revenue, cementing Shopify’s status as a top subscription or software-as-a-service play in the market.

Earnings growth inflecting higher

Top-line revenue growth is great. However, I’d argue that in this climate, investors want to ultimately see a return on their invested capital.

On that front, Shopify is a behemoth, seeing earnings growth continue to churn along in the mid-20% range. I’d like to see this earnings growth rate move higher, though we have seen even more improvement in cash flow in recent quarters. And since cash flow is how stocks are supposed to be fundamentally valued, that’s a good thing.

Operating margins have expanded, with operating income up more than 50% on a year-over-year basis during the first half of last year. I’d like to see a continued acceleration this year, as companies continue to ramp up their online presence.

Long-term bet on a sector with big growth

I think e-commerce could be the place to invest over the coming decades, at least for those looking to capture value from a strong consumer. Consumer strength has become bifurcated, and e-commerce sales are really starting to outstrip bricks-and-mortar sales for the first time in a long time.

So long as this is the case, Shopify will remain my go-to choice as a way to play long-term growth with a top Canadian gem.

The post The Smartest Growth Stock to Buy Right Away With $5,000 appeared first on The Motley Fool Canada.

Should you invest $1,000 in Shopify Inc. right now?

Before you buy stock in Shopify Inc., consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Shopify Inc. wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,827.88!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 102%* – a market-crushing outperformance compared to 81%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of January 15th, 2026

More reading

• 3 Reasons to Buy Shopify Stock Like There’s No Tomorrow
• Missed Out on NVIDIA? My Best AI Stocks to Buy and Hold
• 2 Growth Stocks Set to Soar Higher in 2026
• 3 TFSA Hacks to Build a $1 Million Tax-Free Nest Egg
• Shopify Stock: The Easy Money’s Been Made

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.