Got $5,000? Here Are 2 Explosive Growth Stocks to Buy Today

Looking to add some growth to your portfolio? Here are two growth stocks with plenty of potential to outperform the gains of the Canadian market.

| More on:
A colourful firework display

Image source: Getty Images.

It’s no secret that the Canadian market is on an incredible bull run right now. Since the last week of March, the S&P/TSX Composite Index has returned gains of more than 45%. Perhaps even harder to believe, the Canadian market is still down year to date.

As the Canadian market is close to reaching the price that it began the year, we’re seeing many stocks trading at prices far higher than where they were on January 1 of this year. 

I’ve covered two tech stocks that have been on absolute tears since the market bottomed out in the last week of March earlier this year. Investors will need to pay up to own these growth stocks, but I believe the potential reward is well worth the risk.

Kinaxis

Kinaxis (TSX:KXS) might not receive as much attention as some other Canadian growth stocks, but it should. The tech company is close to seeing its share price double since the beginning of the year and is up more than 300% over the past five years. 

The Ottawa-headquartered company provides supply chain planning software to its customers. The cloud-based subscription software is used for supply and demand planning, inventory management, and order fulfillment, to name a few examples. 

Kinaxis is definitely not a consumer-facing company, which may explain why it often flies under investor’s radars. But with the growth stock well on its way to doubling in price in this year alone, investors might want to add this stock to their watch list sooner rather than later.

With growth rates like that of this stock, investors will need to pay up to own shares. The company trades today at a very expensive price-to-sales (P/S) ratio of 25. So, if you’re picking up share today, you better be ready for some volatility, at least in the short term.

Maxar Technologies

Tech company Maxar Technologies (TSX:MAXR)(NYSE:MAXR) does not have the most impressive track record since its inception as a publicly traded company. The stock is down 50% over the past five years and is trading at roughly the same price it was a decade ago. 

What makes this a potentially explosive growth stock, you might ask? Maxar Technologies is a major player in the commercial space industry, that’s why. 

There are still plenty of unknowns in the commercial space industry, but many investors are predicting explosive levels of future growth. The timeline on that growth, though, is still very much up for debate.

Headquartered in the U.S., Maxar provides space infrastructure solutions to customers across the globe. Customers include both government agencies and commercial satellite operators.

It will likely continue to be a wild ride for Maxar investors, but for anyone who is bullish on the space industry, this is one stock that you’ll definitely want to have on your radar.

At a P/S ratio of 1.5, it’s not the cheapest stock for Canadians to own. But the risk-to-reward ratio may be well worth it for those who believe in the hype of the commercial space industry.

Foolish bottom line

These two companies may not have much in common, but explosive growth potential is one quality I’d label both stocks with.

Kinaxis can provide investors with a more stable and reliable growth trajectory but may not have as much upside as Maxar if the space industry really takes off.

For Canadian investors willing to pay up to own a couple of growth stocks, these are two you’ll want to add to your watch list 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 Nicholas Dobroruka has no position in any of the stocks mentioned. The Motley Fool recommends KINAXIS INC and MAXAR TECHNOLOGIES LTD.

More on Tech Stocks

Businessman holding AI cloud
Tech Stocks

Could Investing $20,000 in Nvidia Make You a Millionaire?

Nvidia stock has made investors millionaires in the last 10 years. Is it too late to invest to become a…

Read more »

Business man on stock market financial trade indicator background.
Tech Stocks

1 Growth Stock Down 50 Percent to Buy Right Now

There are plenty of growth stocks in the market worth considering, but Shopify (TSX:SHOP) looks like one of the best…

Read more »

Woman has an idea
Tech Stocks

Prediction: 1 Stock That Could Trounce the Market 

The TSX has been favouring tech stocks, but not this one. However, it has the potential to trounce the market…

Read more »

clock time
Tech Stocks

Long-Term Investing: 3 Top Canadian Stocks You Can Buy for Under $20 a Share

These three under-$20 stocks offer excellent buying opportunities for long-term investors.

Read more »

Businessman holding AI cloud
Tech Stocks

AI Will Transform Everything: Investors, Be Early Adopters and Buy These 3 Stocks

Investors looking to invest in companies doing big things in AI should consider these three stocks for their portfolios.

Read more »

stock research, analyze data
Tech Stocks

Forget Shopify: These Unstoppable Stocks Are Better Buys Today 

Should you consider buying Shopify stock while rivals consider a buyout or should you go for stocks with a stronger…

Read more »

A colourful firework display
Tech Stocks

2 Potentially Explosive Stocks to Buy in March

These two growth stocks are destined for many more years of market-crushing returns.

Read more »

edit CRA taxes
Tech Stocks

TFSA Millionaires Are Learning They Can Still Be Taxed

If you day trade stocks like Shopify (TSX:SHOP) in a TFSA, you may be taxed.

Read more »