2 Top TSX Growth Stocks To Buy Today

The Canadian market is down close to 10% year to date, but that doesn’t Canadians shouldn’t still be investing. Here are two top growth stocks that I’d recommend adding to your watch list today.

Nicholas Dobroruka

Nik has been writing for The Motley Fool Canada since 2020. After studying marketing at University in his hometown of Montréal, Nik decided to pack up and move west to Vancouver. By day, Nik is a digital media ninja, specializing in Programmatic advertising. By night, you can find him either Mountain biking in Vancouver’s famous North Shore trails or writing for TMF Canada. Tech, digital payments, and renewable energy are three areas that Nik enjoys following and writing about.

Published July 7, 2020 1:24 pm EDT

The Canadian market has surged almost 40% since the end of March. While that may sound impressive, the S&P/TSX Composite Index is actually down close to 10% year to date. The incredible bull run came right after a record-setting decline in the market.

As the COVID-19 virus began wreaking havoc across the globe, the stock market began to plummet. In just over one month, the Canadian market fell an incredible 35%.

For short-term investors, it’s been quite a stressful year. But for the long-term investor, there have been plenty of opportunities to buy great companies at a discount.

I’ve reviewed two top growth stocks in the Canadian market today, highlighting why each is on my watch list right now. If you’re a long-term investor that can endure the likely volatility in the short-term, both of these companies could lead to market-beating returns for your portfolio.

Real Matters

There may be a lot of uncertainty surrounding the housing market in Canada today, but Real Matters’ (TSX: REAL) stock performance this year suggests otherwise. The $2 billion company supplies technology and network management solutions to mortgage lenders and insurance providers.

Year to date, the stock price is up close to 125%. The company is dealing with effects from the COVID-19 pandemic, but management highlighted during the most recent earnings call that this surge in performance is definitely warranted.

Management explained how in the previous year, the primary consumer activity came from purchase transactions. Whereas throughout this pandemic, Real Matters has witnessed a significant increase in refinancing services. Management went on to say that this is a trend they expect to see continue for at least the rest of 2020.

LightSpeed

While this tech company has not seen its stock price double this year, yet, there is plenty of growth still ahead for the point-of-sale (POS) provider. Headquartered in Montreal, Quebec, Lightspeed (TSX: LSPD) is valued at a $3.5 billion market cap.

Lightspeed’s main clientele consists of small- to medium-sized businesses, which partly explains why performance this year has taken a hit. Many of the tech company’s clients were forced to temporarily close down over the past several months.

Once known as strictly a POS provider, LightSpeed has developed into a true cloud-based, omni-channel sales platform. The tech company has followed a similar trajectory as the much larger American company, Square.

Similarly to Square, Lightspeed has innovated its products and services to offer a full one-stop-shop to brick-and-mortar retailers. Some of the new products and services the company now offers include data analytics, digital marketing, and loyalty program creation.

Foolish bottom line

It hasn’t been a great year for the S&P/TSX Composite Index, especially when you compare it to last year’s performance. But for Foolish investors, we need to keep focusing on the long-term horizon.

Both of the companies that I’ve covered have plenty of room still left to run. If you have cash ready on the sidelines and can invest with a long-term horizon, these are definitely two growth stocks I’d recommend considering closely.