2 TSX Stocks to Buy Now That Could Make You Very Rich

Saving for a long-term goal? The Canadian stock market is full of opportunities. Here are two top TSX stocks that should be on your radar.

| More on:
financial freedom sign

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

If you’re working towards a long-term financial goal, TSX stocks can help you get there. It’s anybody’s guess as to how the market will fare year to year, but there are decades of data to estimate the type of return you could expect to earn over the long term.

Investors have the option to either pick individual stocks or own passive index funds. Owning individual TSX stocks will take additional time to research stocks and manage your portfolio. The goal of taking this extra time would be to outperform the returns of the broader market. 

Individual stocks have the potential to outperform the broader market, but that opportunity comes with the likelihood of higher volatility. If the market has a year where it’s down by 10%, your individual stocks could be down much more than that. But as long as the TSX stock’s long-term growth potential is still there and your investment thesis is intact, there’s no reason to sell.

When I’m searching for potential market-beating stocks to add to my portfolio, I’m looking for companies that have long-term growth potential. Another quality I’m looking for is how strong of a position the company has in its respective market. 

Here are two top TSX stocks that all long-term Canadian investors should have on their watch lists right now. 

Investing in high-priced tech stocks

Tech stocks have been going through a selloff in recent months, while the Canadian market has soared to all-time highs. Tech companies drove the market’s growth in 2020, but we’re beginning to see valuations catch up to many of those high-priced stocks. 

For many of those high-priced tech stocks, the growth potential over the long term has not disappeared. Many of them may be trading 20% or more below all-time highs, but as a long-term investor myself, I just see that as an excellent buying opportunity

TSX stock #1: Lightspeed

The Montreal-based company Lightspeed (TSX:LSPD)(NYSE:LSPD) is trading at a lofty price-to-sales (P/S) ratio of 50. While this TSX stock is still ridiculously expensive, it is trading 15% below all-time highs right now.

The tech company has only been a public company since March 2019. In barely over two years, the stock is already up a market-crushing 350%. 

Lightspeed’s commitment to product innovation and global expansion is why I’m so bullish on the TSX stock. The company is becoming an increasingly more important part of its customers’ businesses. Whether it’s for payment solutions, digital marketing, or accounting and financing, Lightspeed is there to support its customers.

Shares aren’t cheap, but this is certainly one growth stock that’s worth paying a premium for. 

TSX stock #2: Docebo

The pandemic caused a surge in stay-at-home stocks in 2020, which included Docebo (TSX:DCBO)(NASDAQ:DCBO).

The tech company specializes in providing cloud-based virtual training platforms for employees. The platforms are designed for both in-office and remote workers, but as the number of employees working from home spiked last year, so did the demand for Docebo’s products.

Just like Lightspeed, Docebo is relatively new to the TSX. Since becoming a public company in October 2019, shares are up a market-beating 360%.  

Also similar to Lightspeed, shares of Docebo are far from cheap. The TSX stock is trading at a P/S ratio just below 30. It’s not as pricey as Lightspeed, but it’s still a very expensive stock.

As the country prepares for its reopening, Docebo shares have taken a hit. Year to date, the stock is down more than 20%. That shouldn’t come as a surprise as employees are getting set to return to shared office spaces in the coming months.

Docebo revenue growth will likely be down this year after a monster performance in 2020. But even with the expected decline in revenue this year, I’m still bullish long term on this TSX stock. 

I believe that even as employees return to the office this year, remote work will continue to grow over the next decade. If you’re bullish on the growth of remote work too, this is one tech stock that should be in your portfolio.

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 owns shares of Lightspeed POS Inc. The Motley Fool owns shares of Docebo Inc. and Lightspeed POS Inc.

More on Tech Stocks

grow money, wealth build
Tech Stocks

How to Create $100,000 by Investing $500/Month

These two TSX stocks will aid you in building wealth of $100,000 over the next 8.5 years.

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Tech Stocks

This Battered Growth Stock Could Soar Over the Next 3 Months

Docebo (TSX:DCBO)(NASDAQ:DCBO) is a top work-from-anywhere stock that may be in for a sizeable move to the upside in coming…

Read more »

financial freedom sign
Tech Stocks

3 Selloff Stocks That Could Set You Up for Life

Are you hoping to take advantage of the stock market selloff? Here are three stocks that could set you up…

Read more »

question marks written reminders tickets
Tech Stocks

Docebo (TSX:DCBO) Stock Is Still Down 63%: Should You Buy it?

The growth potential of many new tech stocks that joined the TSX during the pandemic may have been exaggerated, and…

Read more »

Plant growing through of trunk of tree stump
Tech Stocks

2 Growth Stocks Investors Should Buy Today

Are you looking for stocks to add to your portfolio? Buy these two growth stocks today!

Read more »

Male IT Specialist Holds Laptop and Discusses Work with Female Server Technician. They're Standing in Data Center, Rack Server Cabinet with Cloud Server Icon and Visualization
Tech Stocks

3 Tech Stocks I am Buying During a Correction

High-growth tech stocks such as Docebo and Shopify should remain part of your buying list right now.

Read more »

exchange-traded funds
Tech Stocks

2 Tech Sector ETFs to Buy for a Recovery

Individual tech stocks might not fit the risk appetite of many conservative investors. Though, gaining exposure to the entire sector…

Read more »

Growing plant shoots on coins
Tech Stocks

3 Growth Stocks Are Back in the Game: Up to 83% Upside to Come!

Buying a basket of diversified growth stocks can accelerate your retirement plan. Alternatively, you can use profits for a nice…

Read more »