The S&P/TSX Composite Index has been riddled with considerable volatility over the last few months. At writing, the Canadian benchmark index is up by 3.37% from its January 27 levels but down by 0.59% from its February 2nd levels. The instability in the equity market in recent weeks has made many growth-seeking investors cautious about deploying their investment capital.
However, the volatility will not last forever. We could see high-growth stocks that have gone through a downward correction over the weeks gain traction on the stock market again soon. The recent selloff has resulted in several high-quality growth stocks trading for considerable discounts today.
Considering the broader market environment, investing in the right growth stocks could provide you with considerable upside potential for your portfolio. Today, I will discuss two such growth stocks you could consider.
Lightspeed Commerce
Lightspeed Commerce (TSX: LSPD)(NYSE: LSPD) is a tech company that has been reporting phenomenal numbers in its quarterly earnings reports for several quarters and aligning with growth expectations from market analysts. The $5.82 billion market capitalization tech giant based in Montreal has grown its year-over-year revenues by 165% through organic growth and strategic acquisitions.
Despite boasting strong growth potential, the tech company has suffered significant declines in its performance on the stock market. A broad selloff and a short-seller report by Spruce Capital Management are major contributing factors to this decline. At writing, Lightspeed stock trades for $39.22 per share, down by over 75% from its all-time highs in September 2021.
Canadian Natural Resources
Canadian Natural Resources (TSX: CNQ)(NYSE: CNQ) is an $80.11 billion market capitalization oil and natural gas company headquartered in Calgary. The surge in energy demand and oil prices have benefitted the entire energy industry, and CNQ stock has seen a considerable uptick due to the bullish trend in the industry. As analysts expect the uptrend in oil prices to continue, the company could provide you with even greater total returns.
At writing, CNQ stock trades for $67.60 per share, and it boasts a juicy 3.48% dividend yield. Its share prices are up by an astounding 106% year over year and 23.6% year to date. With oil prices expected to rise further this year, it could be the right time to invest in its shares to enjoy high growth.
Foolish takeaway
Several factors keep changing and affecting the performance of growth stocks and their potential to deliver significant returns. It’s crucial to do your research and identify stocks that boast a strong growth potential considering the changing circumstances and how things seem like they will shape up in the coming months or years.
Lightspeed Commerce stock could be a viable investment for this purpose due to the essential role it plays for its customer base. Canadian Natural Resources stock could post strong shareholder returns due to rising oil prices increasing its profitability.
However, it’s important to remember that investing in high-growth stock also entails a higher degree of capital risk. Consider investing in these companies if you already have a balanced portfolio that can offset any losses if the stocks underperform.
