5 Reasonably Priced TSX Growth Stocks to Buy Now

While these stocks are reasonably priced, they offer strong potential.

growing plant shoots on stacked coins

Image source: Getty Images

The selling in equities affected growth stocks the most. While these stocks recovered from the recently crafted lows, they are still reasonably priced and look attractive long-term investments. Let’s look at five TSX stocks that offer strong growth potential and are trading at discounts of at least 35% from the peak.  

goeasy: 39% discount

Shares of goeasy (TSX:GSY) have corrected about 39% from the 52-week high and look attractive at current levels due to its ability to grow financials at a breakneck pace. This financial services company has consistently delivered stellar earnings and raised its dividend at a CAGR of 34.5% in the last eight years.

Higher loan origination, product and channel expansion, acquisitions, strong payments volumes, and operating leverage suggest that goeasy’s revenue and net income could continue to grow at a double-digit rate. Meanwhile, it is expected to enhance its shareholders’ returns through higher dividend payments.  

Docebo: 47% discount 

The selling in the market wiped out a significant portion of value from Docebo (TSX:DCBO)(NASDAQ:DCBO) stock. Nevertheless, this e-learning platform provider continues to grow its financials rapidly, thanks to the higher enterprise spending and strength in its organic sales. Its annual recurring revenue growth remains high.

Meanwhile, its growing customers, high net dollar retention rate, multi-year contracts, and larger deal sizes bode well for growth. Also, opportunistic acquisitions and operating leverage will likely support its financials and its stock. 

Nuvei: 51% discount

Next up is Nuvei (TSX:NVEI)(NASDAQ:NVEI) stock, which has dropped over 51% from its high. The drop in the shares of this financial technology company represents a solid opportunity to buy and hold it for decades, owing to its potential to deliver outsized returns. Its continued addition of new alternative payment methods, growing addressable market, foray into high-growth verticals, and product innovation augur well for growth.

Further, the growing penetration of e-commerce and strategic acquisitions will likely accelerate its growth. Notably, Nuvei’s revenues and volumes are expected to increase by over 30% in the medium term, which is encouraging and supports my bullish outlook.

Shopify: 61% discount  

The moderation in growth and macro headwinds took a toll on Shopify (TSX:SHOP)(NYSE:SHOP) stock, which has corrected over 61% from its high. While Shopify stock is trading at a significant discount, it is poised well to gain from the reacceleration in e-commerce. It continues to expand its product base and is growing its international footprint.

Further, investments into its e-commerce infrastructure, increased payments penetration, growing merchant base, and momentum in social commerce provide a multi-year growth opportunity. 

Lightspeed: 78% discount

With its shares down about 785 from the 52-week high, Lightspeed (TSX:LSPD)(NYSE:LSPD) stock is an attractive bet at current levels. Despite growth concerns, Lightspeed continues to grow its financials rapidly, reflecting benefits from acquisitions and continued strength in the base business.

The shift in selling models towards multi-channel platforms, growing payments penetration, geographical expansion, innovation, and higher average revenue per user provides a solid base for growth and supports my bullish view.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool owns and recommends Nuvei Corporation and Shopify. The Motley Fool recommends Docebo Inc. and Lightspeed Commerce.

More on Investing

A cannabis plant grows.
Cannabis Stocks

Canopy Growth Stock Is Rising But I’m Worried About This One Thing

Canopy Growth stock is soaring as the legalization effort makes real progress in both Germany and the United States.

Read more »

young woman celebrating a victory while working with mobile phone in the office
Investing

3 Roaring Stocks to Hold for the Next 20 Years

These top TSX stocks are excellent long-term buys, given their multi-year growth potential and solid underlying businesses.

Read more »

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

grow dividends
Investing

Here’s My Top 3 TSX Stocks to Buy Right Now

Even though the TSX has been rising, there are still some good bargains out there. Here are three top compounding…

Read more »

Target. Stand out from the crowd
Investing

Prediction: This Canadian Growth Stock Could Double by 2030

Alimentation Couche-Tard (TSX:ATD) is a top growth stock that could do well over the next six or so years.

Read more »

Businessman holding AI cloud
Tech Stocks

Could Investing $20,000 in Nvidia Make You a Millionaire?

Nvidia stock has made investors millionaires in the last 10 years. Is it too late to invest to become a…

Read more »

Engineers walk through a facility.
Dividend Stocks

1 TSX Stock I Wouldn’t Touch With a 10-Foot Pole

AtkinsRéalis (TSX:ATRL) is one TSX stock I'd never invest in.

Read more »

money cash dividends
Stocks for Beginners

Have $500? 3 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now

If you're looking for cheap stocks, these three have a huge future ahead of them, all while costing far less…

Read more »