Growth stocks can be great assets to hold. By building large positions composed of successful growth stocks, investors could see their portfolios skyrocket in value. That’s exactly what happened in 2020 after the market crash caused by the COVID-19 pandemic. However, when the market is more turbulent, it may be difficult to know whether a buying opportunity presents itself or if investors are better off leaving these stocks alone for the time being. In this article, I’ll discuss whether three popular TSX growth stocks are a buy, sell, or hold.
Shopify stock
Shopify (TSX: SHOP)(NYSE:SHOP) is a company that needs little introduction. It has grown from being a small startup in Ottawa to one of the largest e-commerce companies in the world. Its user-friendly platform has made it very popular among first-time entrepreneurs. However, the breadth of its offering also makes it very appealing to large-cap enterprises.
Since its IPO, Shopify stock has mostly seen an upwards trajectory. In fact, from its IPO until November 2021, Shopify stock saw a total gain of more than 6,000%! However, since hitting its all-time high at the end of last year, Shopify stock has fallen more than 60%.
With that in mind, many investors are wondering whether it’s time to finally let their Shopify shares go. I believe it isn’t. The e-commerce industry should continue to grow, and I predict Shopify will only gain market share from here. The company has done an excellent job of attracting new enterprise customers and expanding its partnership network. This is a definite buy in my opinion.
Nuvei stock
Nuvei (TSX: NVEI)(NASDAQ: NVEI) is an interesting company. At one point, I thought this was a can’t-miss opportunity. Looking at the big picture, it very well could be. Nuvei offers an omni-channel payments platform. Using its products, merchants are able to accept online, mobile, in-store, and unattended payments. It was that diversity in its offering that separated it from its peers in the payments industry.
However, there seems to be a lot of negative sentiment surrounding this stock. Normally, I wouldn’t let negative perceptions factor too much into how I assess a company. But in this case, a lot of those negative perceptions have come because of a short report, which caused Nuvei to lose more than half of its value. Today, Nuvei stock trades about 49% lower than its all-time highs. I rate this stock a hold until investors get a bit more clarity on the company’s outlook.
Topicus.com stock
Topicus.com (TSXV: TOI) is a stock that attracted a lot of attention in its first year of trading. Formerly a subsidiary of Constellation Software, Topicus operates a very similar business. It acquires vertical market software companies in the highly fragmented European tech market. At its peak, Topicus stock gained more than 120% in the first seven months after its IPO.
However, like many other growth stocks, Topicus has fallen victim to a significant market correction. Today, Topicus trades about 25% lower than its all-time highs. One positive aspect about Topicus stock is that it has managed to gain more than 30% in the past month. I believe Topicus is currently offering investors an excellent opportunity to buy shares at an attractive discount.
