The search for the best growth gems in the market right now is on. Indeed, growth stocks continue to outperform their value peers by a wide margin today. Monetary policy remains accommodative, and vaccinations have boosted the growth outlook for equities in the years to come.
Accordingly, I’m going to dive into three of the top TSX growth stocks I’ve got my eye on right now. These are some of the best historical performers but also three stocks I expect to continue to outperform over the long haul.
Top growth stocks: Constellation Software
One of the best growth stocks in the software space, Constellation Software (TSX:CSU) has been a top pick of mine for some time. This consolidator of a highly fragmented software space has grown to a market cap of more than $45 billion via a series of well-timed and prudent acquisitions. Indeed, Constellation has one of the best management and M&A teams in the market. Accordingly, those looking to add exposure to a high-quality acquirer can’t do much better than CSU stock.
This is a company with an impressive long-term growth trajectory that has continue to execute over many, many years. Indeed, historical performance counts for something. It’s a great barometre of how likely a company is to outperform in the future. On this metric alone, Constellation Software remains a top growth stock to consider.
Indeed, this massive e-commerce player has seen impressive capital appreciation growth in recent years. Now trading near its all-time high, Shopify stock is well positioned for another leg higher. Investors appear to be willing to pile into proven hyper-growth plays in this segment. Among the available e-commerce growth stocks to choose from, Shopify remains one of the best companies in the world.
Shopify’s platform is second to none in bringing SMBs online. This company’s product offering has been an essential part of the global recovery for retailers. Accordingly, it’s no surprise Shopify has been one of the best-performing growth stocks in the market in recent years. This continues to be a top pick of mine today.
Another growth-by-acquisition play, Open Text (TSX:OTEX)(NASDAQ:OTEX) is another big player in the software space. This company’s growth has been underpinned by a strong digitization trend. Indeed, long-term investors betting on continued growth in this regard can’t go wrong considering Open Text.
Information management software and solutions, as well as cybersecurity-related software options, continue to be in high demand. Indeed, Open Text’s business model is about as defensive as high-growth stocks can get. Accordingly, I like where this stock is positioned for the long haul.
Like the other growth stocks on this list, Open Text isn’t cheap. However, I think these stocks are all worth every dime for long-term investors seeking quality among the plethora of growth stocks available today.
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 Shopify. The Motley Fool recommends OPEN TEXT CORP and Open Text and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.