My Top 2 Growth Stocks for 2022

Are you struggling to find high-growth stocks for your investment portfolio? Take a look at my top two picks from the TSX.

2021 was an overall fantastic year for Canadian equity markets. The S&P/TSX Composite Index reached new all-time highs consistently throughout most of the year. Volatility stuck the market toward the end of the year as rising fears due to the Omicron variant impacted investor sentiment.

The volatility seeped into 2022, but things appear to be getting better. At writing, the Canadian benchmark index is up by 2.37% since January 5, 2022, and the upward trend appears set to continue. Growth stocks have been struggling amid the unstable market. The challenges could continue as interest rates rise this year and uncertainty about the pandemic continues to plague markets.

However, it could be an excellent time to buy high-growth stocks, provided that you can identify the right opportunities. If you can tolerate near-term volatility and hold onto your investments through the volatile environment, the right growth stocks could reward you with substantial wealth growth through upside movement.

Today, I will discuss two of my top picks for growth stocks that could do well in 2022 after weathering the market volatility.

Constellation Software

Constellation Software Inc. (TSX: CSU) is a top growth stock from the tech sector that has provided more stable growth than many of its more well-known peers. The $46.18 billion market capitalization software company excels in acquiring software companies and making them more profitable, strengthening its own position in the process. It does not have the most exciting business model, but Constellation Software has delivered reliable shareholder returns over the years.

At writing, Constellation Software stock is trading for $2,173.57 per share. It is down by 8.39% from its all-time highs in December 2021. The company boasts the financial strength necessary to continue acquiring more businesses and growing them into more profitable ventures. It could be a top stock to consider adding to your portfolio if you’re looking for high-growth stocks.

Docebo

Docebo Inc. (TSX: DCBO)(NASDAQ: DCBO) is a growth stock that offers more exciting growth than Constellation Software and at a more rapid pace. Docebo is a $2.29 billion market capitalization company that is operating in a crucial segment of the tech industry. The company provides cloud-based and AI-powered e-learning platforms for enterprise-level businesses. The demand for its services surged during the pandemic, where remote work is a norm.

Businesses can use its platform to facilitate better training programs for their employees, making it a critical service. At writing, Docebo stock is trading for $69.77 per share. It is down by over 40% from its September 2021 high, and it could be an excellent pick for growth-seeking investors bullish on its recovery.

Foolish takeaway

It is important to remember that there is always a degree of risk involved with investing in the stock market. The capital risk is more significant when you are investing in growth stocks, but finding the right opportunities could set you up for substantial long-term gains when the growth stocks fulfill their potential.

2022 might be a better year in terms of where the world is headed with the pandemic, but there is a substantial amount of uncertainty that persists. If you have a balanced portfolio that can provide you with reliable returns and want to diversify into high-growth stocks, Constellation Software stock and Docebo stock could be viable assets for you to consider.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Software and Docebo Inc.

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