With all your Christmas shopping done and the holiday season over, it might be time for you to consider getting a gift for yourself. What better gift can you get yourself than investing in Canadian growth stocks that could offer you substantial long-term wealth growth.
Considering how volatile the market has been in the weeks leading up to 2022, the uncertainty might make you feel alarmed and worried about deploying your cash. The S&P/TSX Composite Index has been recovering the last few days. At writing, the Canadian benchmark index is down by less than 2.5% from its all-time high in November 2021.
As the stock market continues to recover, many investors are still cautious about delving into Canadian equities. However, it could be the ideal time for you to pick up shares of growth stocks at reasonable valuations for long-term gains.
Today, I will discuss two TSX stocks that should be on your shopping list for your portfolio in 2022.
Brookfield Renewable Partners
Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) has been a stock that has spent the entire year in 2021 gradually declining. The $12.43 billion market capitalization company is a publicly-traded limited partnership that owns and operates a geographically diversified portfolio of renewable energy assets. The stock posted stellar shareholder returns between 2018 and 2021, but its rapid growth was followed by a warranted correction throughout 2021.
At writing, Brookfield Renewable stock is trading for $45.18 per share, and boasts a juicy 3.43% dividend yield. The stock is down by 20% year to date, and that could be an excellent opportunity for you to purchase its shares at a massive discount.
Enghouse Systems
Enghouse Systems Ltd. (TSX:ENGH) is not a green energy stock, but it is a growth stock that could be a viable investment for you to consider. The $2.7 billion market capitalization company is headquartered in Markham. It develops software for various business verticals worldwide. One of its most promising software is the specialized business software that facilitates remote work created by Enghouse System’s Interactive Management Group.
At writing, Enghouse stock is trading at $48.64 per share. It is down by over 21% year to date and over 37% from its all-time high in July 2020. Investing in its shares today could set you up for stellar shareholder returns as its valuation gets back to its latest all-time high.
Foolish takeaway
Many investors might feel worried about delving into growth stocks during a market environment that has been volatile for several weeks now. Growth stocks typically involve greater capital risk than blue-chip stocks and fixed-income assets, but that comes with more substantial upside potential for your wealth growth.
If you have a balanced portfolio and want to introduce growth stocks that could set you up for significant long-term wealth growth, Brookfield Renewable stock and Enghouse Systems stock could be worth considering for your self-directed portfolio.
