Growth stocks have made a comeback these days. Indeed, investors seeking the best-quality growth stocks on the TSX have their work cut out for them. After all, there happen to be a number of great opportunities to choose from.
However, in this article, I’m going to discuss three top growth stocks offering great long-term return potential to investors.
Let’s dive in.
As far as growth-by-acquisition plays go, Lightspeed POS (TSX:LSPD)(NYSE:LSPD) is one of the best. Indeed, this point of sale and e-commerce omnichannel technology provider has seen impressive growth in recent years. The company has continued to consolidate this fragmented space, growing market share via a series of aggressive acquisitions.
To date, this strategy has worked well for Lightspeed. Investors in Lightspeed stock have continued to benefit from rising valuations across the sector. Indeed, as more investors focus on the digitization of retail, Lightspeed is a key player in this domain, particularly in Canada.
That said, Lightspeed stock isn’t cheap. This company trades at a very elevated valuation multiple, making this a tough choice for many investors today. However, investors can’t argue with the company’s growth trajectory, which has been incredible.
Accordingly, I view Lightspeed stock as a higher-risk, higher-reward pick in today’s environment.
Another Canadian hyper-growth gem is Curaleaf (CNXS:CURA).
Indeed, this cannabis player stands out from the crowd in terms of Canadian-listed cannabis stocks for one key reason. This isn’t a Canadian cannabis stock.
In fact, Curaleaf is a U.S. MSO that happens to trade on the venture exchange. The company’s business model spans coast-to-coast in the U.S. And Curaleaf has one of the best vertically-integrated business models of its peers.
Accordingly, investors looking to play the potential for U.S. legalization have a great pick in Curalaeaf right now. In addition to these catalysts, Curaleaf has been expanding heavily in Europe, building its global footprint. In my view, Curaleaf could be a winner in the global cannabis sector over the long term.
This e-commerce juggernaut has a business model which is highly leveraged to growth in the e-commerce space. Again, for those seeking exposure to the digitization of retail, Shopify is perhaps the pre-eminent play in Canada.
The company’s business has seen rapid growth throughout the pandemic, making shares of this top e-commerce player highly valued. However, those who believe this growth trajectory is intact may like shares at this level. Indeed, there’s a lot to like about Shopify’s long-term growth prospects.
I think the e-commerce undercurrent driving Shopify shares could continue for a very long time. Accordingly, this is a stock every investor should keep on their watch list right now.
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 Lightspeed POS Inc and Shopify. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.