With September just around the corner, it’s normal for investors to want to shake up their portfolios a bit. However, which growth stocks should you target this month? I think investors should continue buying companies that can benefit from long-term trends, have passionate founders, and have strong histories of outperformance. In this article, I’ll discuss three top growth stocks to buy in September 2021.
Have you been shopping online lately?
If you found that you’ve been buying a lot of things online since the start of the pandemic, you’re not the only one. In 2019, e-commerce only made up 4.2% of all retail sales in Canada. However, due to the business closures imposed by the government last year, that figure rose to 11.4% in April 2020. Those numbers seem to have been sustained since, with many Canadians forming a habit of shopping online. That bodes well for Shopify (TSX:SHOP)(NYSE:SHOP), which provides merchants with a platform and the tools necessary to operate online stores.
As an investment, Shopify is very attractive. The company has a large presence within the rapidly emerging e-commerce industry. It is also known for having an outstanding management team. Shopify’s founder Tobi Lütke has been with the company since the start. In fact, he was responsible for writing the very first line of code in what would become Shopify’s platform. Finally, Shopify’s financials are outstanding. In its two latest earnings presentations, the company has reported year-over-year increases of 110% and 57%, respectively, in its quarterly revenue.
This stock has gained more than 5,400% since its IPO, but we’re still much closer to the start of the story than the end.
A major beneficiary coming out of the pandemic
Another company that has benefitted from the pandemic is Docebo (TSX:DCBO)(NASDAQ:DCBO). The company offers a cloud-based and AI-powered eLearning platform for enterprises. As you can imagine, this is exactly the kind of company that would take off after businesses were forced to operate remotely. During the COVID-19 market crash, investors realized Docebo was in an excellent position to grow and pushed its stock more than 650% after it hit its lowest point in March 2020.
Docebo is relatively new to the market, first trading on the TSX in October 2019. However, the company has already managed to secure very impressive customers. Notable companies that rely on Docebo include Amazon and Thomson Reuters. In Q1 of this year, Docebo stock stumbled heavily, falling about 40%. However, it seems as though it has put those hurdles behind it. Docebo stock now trades at all-time highs after rallying more than 110% since mid-March.
Helping power our societies in the future
As governments and businesses continue to become more aware of the current issues surrounding climate change more money should find its way to the renewable energy industry. In that case, companies like Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) are poised for continued growth. This year hasn’t been the greatest for companies like Brookfield Renewable. Its stock in particular has fallen about 9% year to date as of this writing.
However, the company’s prospects remain attractive. Brookfield Renewable is continuing to prioritize growth projects, investing in new projects around the world. The company already operates a diverse portfolio of assets capable of generating more than 21,000 MW of power. It is a global leader in an ever-growing industry.
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 Brookfield Renewable Partners, Docebo Inc., and Shopify. The Motley Fool owns shares of and recommends Amazon, Docebo Inc., and Shopify. The Motley Fool 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.