Given the selling in the market, several top TSX stocks have suffered. However, businesses of a few companies continue to perform well, implying that it is time to buy and hold their stocks for stellar long-term gains. With that in the backdrop, let’s dive deeper into three TSX stocks that look attractive long-term picks at current levels.
Shopify
With a year-to-date decline of over 49%, Shopify (TSX: SHOP)(NYSE:SHOP) stock appears to be an attractive long-term investment at current levels. While the moderation in its growth rate and planned investments are likely to hurt its near-term revenue and margins, it remains well positioned to deliver superior returns in the long term.
It’s worth noting that Shopify’s investments in strengthening its business will likely support its long-term growth. Meanwhile, the international expansion, adoption of its payments solutions, and growing market share in the U.S. retail bode well for growth. Shopify’s growth is expected to reaccelerate as the year progresses, benefitting from its initiatives to drive revenue.
Overall, the pullback in its share price, structural shift towards omnichannel platforms, merchant acquisitions, strengthening of its fulfillment network, expansion of product suite, growing global footprint, and opportunities in social commerce provide a solid base for long-term growth.
goeasy
goeasy (TSX: GSY) stock is a multi-bagger that has outperformed the broader market averages by a wide margin over the past several years. While its stock has witnessed a selling amid macro concerns, its business continues to grow rapidly, making it an attractive investment for the long term.
goeasy’s top line could benefit from higher loan originations, an increase in ticket size, product expansion, and omnichannel offerings. Further, a large subprime lending market provides a multi-year growth opportunity. While goeasy’s underlying business remains strong, opportunistic acquisitions are expected to support its growth.
Notably, goeasy projects double-digit revenue growth in the medium term. Meanwhile, solid repayment volumes, growing secured loans, and operating efficiency could cushion its bottom line and support dividend growth.
It’s worth noting that goeasy’s bottom line has grown at a solid double-digit rate over the past several years, which explains why the company has raised its dividend at a CAGR of over 34% in the last eight years. Its high-growth business and strong dividend payments indicate that goeasy could deliver stellar returns for its shareholders.
Docebo
Like its tech peers, Docebo (TSX: DCBO)(NASDAQ: DCBO) stock also witnessed a selling. However, this corporate e-learning platform provider continues to perform well, reflected through the ongoing strength in its organic revenues.
Docebo’s ARR (annual recurring revenues) increased by 59% during the last reported quarter. Meanwhile, its subscription revenues jumped 64% during the same period. The ongoing strength in its ARR and its lower price presents a solid buying opportunity for investors.
Though Docebo’s growth could moderate a bit as it continues to gain scale, higher enterprise spending remains positive. Further, its growing customer base, high retention rate, larger deal sizes, multi-year contracts, opportunistic acquisitions augur well for growth. Moreover, improving sales and operating leverage will likely support its margins and, in turn, its stock price.
