3 Growth Stocks I Would Buy Today

Growth stocks continue to trade at extremely attractive prices. Which three stocks would I buy today?

| More on:
Target. Stand out from the crowd

Image source: Getty Images

Growth investors have seen a lot of red in their portfolios over the past few months. Many of the most popular growth stocks have seen declines of 50% or more since the start of the year. With that in mind, many investors may be thinking that it’s time to start moving away from these stocks. On the contrary, I think it’s an excellent opportunity to pick up shares at a massive discount.

In this article, I’ll discuss three growth stocks that I would buy today.

This is still my top growth stock

At the start of the year, I chose Shopify (TSX:SHOP)(NYSE:SHOP) as my top growth stock for 2022. Unfortunately, that pick didn’t pan out. Instead, the stock has gone on to fall about 70%. Although that seems like a really bad pick on the surface, Shopify’s business continues to grow at an impressive rate.

One reason that Shopify’s value has decreased as much as it may be due to the rising interest rates. As interest rates increase, it makes it much more difficult for growth stocks to borrow money and fund company expansion. That could result in slower growth. However, the fact of the matter is that Shopify has already become a very profitable company. It has the ability to grow using the money it makes from its business.

A bona fide leader in the global e-commerce industry, I’m confident that Shopify will continue to be a great stock to hold over the coming decade.

Another play on the e-commerce industry

If it wasn’t made obvious in the previous pick, I’m very bullish on the e-commerce industry. With millennials and Gen Z consumers continuing to push the industry forward, I’m confident that online sales will continue to reach new highs in the coming years. One area that investors should consider looking at is the online grocery market. More and more consumers are starting to buy groceries online in a move that was largely sparked by the lockdowns imposed over the course of the COVID-19 pandemic.

Although I don’t currently hold any shares of Goodfood Market (TSX:FOOD), it’s a stock that I’m heavily considering for my portfolio. A leader within the Canadian mealkit industry, Goodfood operates in all 10 Canadian provinces. It has started to bring same-day deliveries to many of its major markets, which is sure to bring more traffic to its platform. Goodfood stock hasn’t performed very well for much of the past year, but if you’re interested in the e-commerce space, then this stock may be right for you.

My top mid-cap pick

We’ve covered a large-cap and a small-cap stock so far in this article. Now, it’s time to target Canadian mid-cap stocks. These are companies that are valued between $2 billion to $10 billion. Of all the stocks trading in that valuation range, my top pick has to be Topicus.com (TSXV:TOI). A former subsidiary of Constellation Software, Topicus operates a similar business. It’s an acquirer of vertical market software companies, focusing on the European tech industry.

What interests me in this company is its close ties to Constellation Software. Although it’s difficult to assume that Topicus can perform as well as Constellation Software has since its IPO, it certainly has a chance. Topicus operates in a highly fragmented industry and has a proven playbook that it can use to guide its growth.

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 Jed Lloren has positions in Shopify and Topicus.Com Inc. The Motley Fool has positions in and recommends Shopify and Topicus.Com Inc. The Motley Fool recommends Constellation Software and Goodfood Market Corp.

More on Investing

Canadian Dollars
Stock Market

Where to Invest $5,000 in April 2024

Do you have some extra cash to spare? Here are five companies to invest $5,000 in next month.

Read more »

Plane on runway, aircraft
Stocks for Beginners

Up 53% From its 52-Week Low, Is Cargojet Stock Still a Buy?

Cargojet (TSX:CJT) stock is up a whopping 53%, nearing closer to 52-week highs from 52-week lows, so what's next for…

Read more »

Question marks in a pile
Bank Stocks

Should You Buy Canadian Western Bank for its 4.8% Dividend Yield?

Down 35% from all-time highs, Canadian Western Bank offers a tasty dividend yield of 4.8%. Is the TSX bank stock…

Read more »

Gold bars
Metals and Mining Stocks

Why Alamos Gold Jumped 7% on Wednesday

Alamos (TSX:AGI) stock and Argonaut Gold (TSX:AR) surged after the companies announced a friendly acquisition for $325 million.

Read more »

tsx today
Stock Market

TSX Today: Why Record-Breaking Rally Could Extend on Thursday, March 28

The main TSX index closed above the 22,000 level for the first time yesterday and remains on track to post…

Read more »

Nuclear power station cooling tower
Metals and Mining Stocks

If You’d Invested $1,000 in Cameco Stock 5 Years Ago, This Is How Much You’d Have Now

Cameco (TSX:CCO) stock still looks undervalued, despite a 258% rally. Can the uranium miner deliver more capital gains to shareholders?

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

potted green plant grows up in arrow shape
Stocks for Beginners

3 Growth Stocks I’m Buying in April

These three growth stocks are up in the last year, and that is likely to continue on as we keep…

Read more »