Growth stocks tend to be a lot more volatile than dividend companies. This is mainly due to all of the developments that happen throughout the year. As such, growth investing requires that investors stay on top of everything going on in the stock market. With that said, here is an updated list of three top growth stocks to buy now.
Still at the top of the list
As of this writing, I still firmly believe that no other growth stock in Canada offers an investment thesis as appealing as that of Shopify (TSX:SHOP)(NYSE:SHOP). The company provides merchants with a platform and all the tools necessary to build and operate online stores.
Currently, there are more than 1.1 million businesses that rely on Shopify. The company caters to everyone from first-time entrepreneurs to large-cap companies like Netflix and Pepsi.
Although Shopify stock has gained an incredible amount since its IPO, an argument could be made that its best days are still ahead. As it stands, e-commerce still only accounts for a very small fraction of all retail sales in Canada and around the world. As businesses continue to optimize online offerings, expect Shopify to grow.
During its Q1 2021 earnings presentation, Shopify reported an amazing 110% year-over-year increase in its quarterly revenue. The company is scheduled to report Q2 earnings on Wednesday.
Another company helping make commerce better
Keeping in line with the commerce mindset, investors should consider an investment in Lightspeed (TSX:LSPD)(NYSE:LSPD). The company’s main offering is an omnichannel point of sale system designed to optimize operations for small- and medium-sized businesses. Since its founding, the company has gone on to offer many new services including Lightspeed e-commerce, payments, loyalty, analytics, and more.
Lightspeed is a very interesting company that has shown shades of a young Shopify. Its founder, Dax Dasilva, leads the company as its CEO and owns a large ownership stake. Lightspeed also makes money via a subscription-based model, providing a more stable source of revenue.
Lightspeed has continued to acquire complementary businesses in hopes of becoming a contender in the POS market. As long as the company continues on its path, investors should be pleased.
As businesses continue to digitize operations, expect this company to succeed
Businesses around the world have continued to prioritize the digitization of different aspects of operation over the past few years. Many common tasks including tax filing, accounting, due diligence, payroll, and more now rely on cloud-based and AI-powered solutions. In the realm of learning management systems, Docebo (TSX:DCBO)(NASDAQ:DCBO) offers a best-in-class platform.
More than 2,300 businesses around the world rely on Docebo to power employee training programs. This includes big names such as BMW and Thomson Reuters. Last year, Docebo also managed to land a multi-year partnership with Amazon to power its AWS Training and Certification offerings worldwide. This partnership may have opened the floodgates, convincing more large-cap companies to turn to Docebo to satisfy their employee training needs. This is a top stock with outstanding potential.
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.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Jed Lloren owns shares of Docebo Inc. and Shopify. The Motley Fool owns shares of and recommends Amazon, Docebo Inc., Lightspeed POS Inc, and Shopify. The Motley Fool recommends BMW and recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2023 $1,140 calls on Shopify, short January 2022 $1,940 calls on Amazon, and short January 2023 $1,160 calls on Shopify.