RRSP Investors: 2 Top Canadian Growth Stocks to Add Today

Here’s why Constellation Software (TSX:CSU) and Lightspeed POS (TSX:LSPD)(NYSE:LSPD) are two Canadian growth stocks to consider right now.

| More on:
Glass piggy bank

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

Maybe growth stocks aren’t overdone right now. Indeed, it appears yet another leg up is taking hold in the growth space right now.

With growth stocks once again seeing momentum, let’s take a look at some of the best options in Canada. Indeed, these two stocks may be some of the most overlooked plays right now. Accordingly, those seeking long-term upside may want to consider these stocks today.

Constellation Software

As far as Canadian tech plays go, Constellation Software (TSX:CSU) makes for a great core TFSA holding. This company’s long-term growth track record is absolutely impressive. Indeed, I’d invite investors to take a look at Constellation’s long-term chart to see what I mean.

The company’s ability to generate long-term growth is derived from Constellation’s growth-by-acquisition model. Essentially, Constellation is a consolidator of the software space. The company finds undervalued companies with tonnes of potential upside and integrates them into its portfolio. Via years of solid M&A work, Constellation has been able to increase its cash flows at a faster rate than it’s been accumulating debt. For long-term growth investors, this is a very good thing.

The question with this stock is whether this business model still has outperformance potential. Indeed, I believe this to be the case. There are thousands of such opportunities available in the market today. And as Constellation has proven with its deal flow in the past (more than 500 such acquisitions), the sky is the limit for this company. That is, assuming Constellation is able to continue to perform at its world-class level.

Lightspeed POS

A slightly higher-risk, higher-reward growth play for investors is Lightspeed POS (TSX:LSPD)(NYSE:LSPD). In similar fashion to Constellation, Lightspeed has grown at a rapid rate of late due primarily to acquisitions. The company is intent on growing its market share in the POS and software market via integrating the competition into its business. This has worked fantastically well for the company of late.

However, Lightspeed has also made a couple of key acquisitions in the e-commerce space which are intriguing. Those who are looking for massive returns will note that e-commerce is the sector that’s provided such returns over time. Accordingly, Lightspeed’s aggressive strategy to tackle this sector head-on right now has many growth investors salivating.

Of course, Lightspeed’s valuation has been a concern in the past. And the company remains extremely highly valued. However, if the company can continue to generate market-shattering growth over the medium term, anything is possible with this Canadian growth stock.

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 Chris MacDonald has no position in any stocks mentioned in this article. The Motley Fool owns shares of and recommends Constellation Software and Lightspeed POS Inc.

More on Tech Stocks

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

Market Volatility: 2 Value Stocks to Buy Right Now

The market volatility does not look like it will let up any time soon, but these two stocks are too…

Read more »

movies, theatre, popcorn
Tech Stocks

Cineplex Stock Shoots Up as Meme Stocks Rally

Cineplex (TSX:CGX) stock seems to have started a rebound after meme stocks started climbing on Monday. But should investors buy…

Read more »

Target. Stand out from the crowd
Tech Stocks

This Is, Hands Down, the Top Canadian High-Growth Stock to Buy This Week

I expect this attractive Canadian high-growth stock to rally in the near term, as it’s set to announce its latest…

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

Why Sierra Wireless (TSX:SW) Stock Has Surged 79% in 2022

Sierra Wireless Inc. (TSX:SW)(NASDAQ:SWIR) is a tech stock that has soared on the back of a big acquisition announcement last…

Read more »

Financial technology concept.
Tech Stocks

BlackBerry Stock is Rallying! Buy Before It’s Too Late

BlackBerry’s improving fundamentals have helped its stock soar lately and outperform the broader market.

Read more »

A gamer uses goggles to play an augmented reality game. tech
Tech Stocks

The Best U.S. Tech Stocks to Buy in August

Tech stocks in the U.S. such as Microsoft and Broadcom have the potential to generate massive wealth for long-term investors.

Read more »

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 »