5 Best TSX Stocks To Buy Right Now

1. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders: 66

Shopify Inc. (NYSE:SHOP), a Canadian e-commerce giant, is one of the best TSX stocks to monitor. On May 4, Shopify Inc. (NYSE:SHOP) reported a Q1 non-GAAP EPS of $0.01 and a revenue of $1.51 billion, outperforming Wall Street estimates $0.05 and $70 million, respectively. Merchant Solutions revenue showed significant growth, with a 31% increase to $1.1 billion compared to the previous year. This growth was mainly driven by the expansion of gross merchandise volume (GMV) and the increased adoption of Shopify Payments. Gross Payments Volume (GPV) also experienced growth and reached $27.5 billion. Subscription Solutions revenue rose 11% to $382 million compared to the prior year, with the increase in revenue primarily attributed to more merchants joining the platform, as well as higher variable platform fees and app usage. Shopify Inc. (NYSE:SHOP) is one of the best TSX stocks to invest in. 

According to Insider Monkey’s first quarter database, 66 hedge funds were bullish on Shopify Inc. (NYSE:SHOP), with combined stakes worth $2.4 billion. Cathie Wood’s ARK Investment Management held the leading stake in the company, comprising nearly 14 million shares worth $670.4 million. 

RiverPark Large Growth Fund made the following comment about Shopify Inc. (NYSE:SHOP) in its Q1 2023 investor letter:

“Shopify Inc. (NYSE:SHOP): Shopify shares were a top contributor in the quarter as the market focused on the company’s recent price increases and its ongoing market share gains in e-commerce gross merchandise volumes (GMV). Earlier in the quarter the company reported better-than-expected 4Q results, with 26% revenue growth and $248 million of FCF (at a 14% margin), significantly better than the Street consensus of -$109 million.

Last year, 10% of US retail e-commerce sales flowed through SHOP, second only to Amazon, and the company is still enjoying significant tailwinds as retail merchants of all sizes adopt SHOP’s software tools to display, manage and sell their products across a dozen different sales channels. We believe that the overall growth of e-commerce, combined with the development of new products and services, such as its digital wallet Shop Pay and its pick, pack and ship Shopify Fulfillment Network, should continue to drive revenue growth of about 20% per year over the next several years, accompanied by re-acceleration of operating margin growth and FCF generation.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 17 Best Cities for Gen Z to Live on a Budget and 25 Cleanest Countries In the World In 2023.