Canadian e-commerce company Shopify (TSX:SHOP)(NYSE:SHOP) has been one of the TSX’s hottest stocks over the past year. In the past 12 months, it has risen by close to 40% in value and it’s now trading at levels around where it was in early 2022. The stock has been steadily improving as investors become more optimistic on the economy.
Shopify has been generating strong results, which has been an encouraging sign of the company’s overall resilience. When it last reported earnings in November, the company reported revenue growth of 26% and it was the sixth straight quarter where its growth rate was above 25% (when excluding logistics).
The company has a presence in over 175 countries, making it easy for people to sell products and services online, even for small merchants. Shopify has proven it can compete amongst online retail giant Amazon (NASDAQ:AMZN).
Today, its market cap is up around $200 billion, however, and investors may be hesitant to invest given its lofty valuation; the stock is trading at close to 100 times its trailing earnings. However, long-term investors may see a reason to remain bullish given that its price-to-earnings ratio is 1.1, which suggests that it may be a cheap buy if you’re willing to buy and hold for several years.
Overall, Shopify is one of the better stocks Canadian investors can hold given its dominance in e-commerce and the opportunities it has to expand even further in the long run. While the stock could be due for a bit of a slowdown in the months ahead, this could be an investment worth putting in your portfolio for the long haul.
