The search for top growth stocks is on, even now. Indeed, with a rotation toward value taking hold, many growth-oriented companies are seeing their valuations decline. Investors are choosing safety over growth right now, that much is sure.
However, there’s now a value hunt building among growth investors looking for top growth stocks trading at newfound meaningful discounts. Three stocks I think are worthy of consideration in this environment are Spin Master (TSX:TOY), Constellation Software (TSX:CSU), and Docebo (TSX:DCBO)(NASDAQ:DCBO). Let’s dive into why.
Top growth stocks: Spin Master
Spin Master is a children’s entertainment organization that operates in the global toy industry that’s worth approximately $100 billion. It boasts a global reach, with over 30 offices in roughly 20 nations and sales in more than 100 markets. Indeed, Spin Master has grown brand awareness through homegrown brands like Bakugan, Paw Patrol, and Rusty Rivets. Also, the company has leaned on a solid acquisition strategy to reach adjacent markets via tie-ups like Cardinal Games, Rubik’s, and Swimways.
Recently, the company came out with its fourth-quarter and full-year 2021 financial results. Spin Master’s revenue came in at $620.5 million, up 26.5% year over year. These impressive results were fueled by revenue growth in Digital Games, Toy, Entertainment, and Licensing. Over time, I see these segments as key growth areas for this toy maker turned digital entertainment company.
Constellation Software
Constellation Software is a Canada-based organization that engages in customizing and developing software for private- and public-sector markets. Accordingly, this company manages, builds, and acquires vertical-specific businesses.
Recently, Constellation’s wholly owned subsidiary Harris Operating Group acquired the Allscripts Hospitals and Large Physician Practices business segment. The CEO of Harris expressed optimism regarding this deal. Also, the CEO of Allscripts believes that the transaction will help maximize focus and future opportunities for the company’s shareholders, clients, and over 7,500 associates.
Overall, as Constellation continues to roll up additional businesses and improve their fundamentals, investors stand to benefit. Accordingly, there’s a lot to like about this growth-by-acquisition play, especially at these levels.
Docebo
Docebo extends cloud-based learning platform aimed at the enterprise market. This company’s focus is on optimizing traditional learning methods, providing results in real time. The company’s core products are used by a range of top-tier organizations, yet Docebo is a company with little name recognition.
Overall, this stock has been underperforming, to say the least. Investors have become less-enamoured with this company’s SaaS business model, and DCBO stock is one that’s sold off alongside other high-valuation names.
That said, over the long term, there’s a lot to like about this company’s growth potential. Docebo’s AI-powered software suite is one which received the number one rank on G2 Crowd’s Enterprise Grid® Report for Corporate Learning Management Systems, Winter 2022.
Any of these three growth stocks are ones to consider right now. Indeed, long-term investors would do well to dive into any of these names at these levels.
