2021 was, overall, a great year for the Canadian stock market. The S&P/TSX Composite Index ended the year up by over 20%. Despite the meteoric rise to new all-time highs for the broader market, the TSX had several names that took a beating in 2021. Investing in technology did not seem like the way to go last year, as most tech stocks underperformed in 2021.
There still are several high-quality names in the tech sector that are trading for considerable discounts. If you are looking for growth stocks that are trading for a discount, now would be a good time to consider deploying some of that investment capital.
Today, I will discuss two top growth stocks that could be exceptional additions to your portfolio if youâre looking for considerable upside movement.
Docebo
Docebo (TSX: DCBO)(NASDAQ: DCBO) is a stellar growth stock that has already shown its massive potential, despite having gone public only in 2019. The $2.14 billion market capitalization company headquartered in Toronto saw its shares explode during the early days of the pandemic. Docebo provides cloud-based learning platforms to enterprise-level businesses worldwide — a solution crucial in the new normal.
Its AI-powered learning platforms are designed to personalize the learning experience for each user, making it the perfect answer to resolve problems arising in the remote-work culture. The pandemic saw the demand for its services surge. After flying very high for several months, Docebo stock went through a correction that was long due.
At writing, Docebo stock is trading for $65.73 per share, and it is down by almost 44% from its all-time high. It could be an ideal stock pick if youâre bullish on its long-term prospects.
Kinaxis
Kinaxis (TSX: KXS) is another growth stock that had put up a stellar performance before going through a significant downward correction in recent months. Kinaxis is a $4.27 billion supply-chain management, sales and operations-planning software company headquartered in Ottawa. The company provides robust solutions throughout the supply-chain management processes, making it a crucial business today.
From demand-and-supply planning to inventory management, Kinaxis boasts a global clientele that relies on its cloud-based software solutions. With supply chain issues disrupting markets worldwide, Kinaxisâs software will only become more important moving forward.
At writing, Kinaxis stock is trading for $157.12 per share, and it is down by over 31% from its all-time high. It could be the ideal time to pick up its shares before things pick up again.
Foolish takeaway
There is a degree of risk involved with investing in any stock in any given market environment. However, investing in growth stocks entails a greater degree of capital risk. The risk can pay off well in the form of significant shareholder returns, but you have to be prepared for the possibility of taking some losses if youâre going down that path.
Provided that you have the risk tolerance and enough invested in a balanced portfolio, you could consider indulging yourself with investing in growth stocks. Docebo stock and Kinaxis stock have had a tough time in recent months on the stock market, but the two companies could provide significant upside if the tide turns in their favour.
It could be worth your while to at least keep a close eye on these two beaten-down growth stocks.
