3 Growth Stocks Investors Should Buy in June 2022

Are you on the hunt for growth stocks to add to your portfolio? Here are three top picks!

| More on:
Growing plant shoots on coins

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

If you’re a growth investor, 2022 has probably been a very tough year for you. Increasing interest rates have caused investors to become very hesitant to invest in growth stocks. This is because a high-interest environment makes it harder for companies to borrow money and fund growth. As a result, selling pressure among growth stocks has been incredible this year, causing many popular stocks to fall more than 50%. However, this selloff gives growth investors the opportunity to snag shares at absurdly cheap valuations.

In this article, I’ll discuss three growth stocks that investors should buy in June 2022.

Start with this blue-chip stock

When it comes to Canadian growth stocks, the first company that comes to my mind is always Shopify (TSX:SHOP)(NYSE:SHOP). Although many investors may be a bit hesitant to invest in this company, considering how much it’s fallen this year, I believe its future remains very bright. Looking at the American e-commerce space alone, Shopify already holds the second-largest market share among e-commerce companies.

As consumers continue to shift towards online retail, you can expect retailers to follow suit and optimize their e-commerce platforms. Many enterprises have already chosen Shopify to power their online stores. This proves that the company can provide value to the largest retailers. As companies continue to optimize these services, Shopify could continue to bolster its already impressive list of customers.

One of my favourite companies

Topicus.com (TSXV:TOI) is one of my favourite companies in my entire portfolio. A former subsidiary of Constellation Software, Topicus operates a very similar company to the Canadian tech behemoth. What differentiates Topicus is the fact that it focuses solely on the European tech industry. This is very interesting, because that industry is highly fragmented and ripe for acquisitions.

In addition, the close ties that Topicus maintains with its former parent company should be very beneficial over the long run. Through this partnership, Topicus has an opportunity to learn from one of the greatest Canadian tech stocks of all time. If Topicus can lean on Constellation’s massive wealth of experience, it could avoid some of the crucial mistakes that younger companies tend to make early on.

A growth stock with dividend potential

By all measures, Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) should be classified as a growth stock. It’s a leading company in an important and emerging industry. All considered, Brookfield Renewable’s diversified portfolio of assets can generate more than 21 GW of power. Upon the completion of its current construction projects, the company estimates that it will more than double its current generation capacity. That would solidify its position among the leaders within the renewable utility industry.

What makes this stock even more interesting is that it provides investors the opportunity to collect a nice dividend as well. A Canadian Dividend Aristocrat, Brookfield Renewable has increased its dividend distribution in each of the past 11 years. Over that period, Brookfield Renewable’s dividend has grown at a CAGR of 6%. This is a stock that gives you the best of both worlds when it comes to growth and dividend potential.

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 Brookfield Renewable Partners, Shopify, and Topicus.Com Inc. The Motley Fool has positions in and recommends Shopify and Topicus.Com Inc. The Motley Fool recommends Constellation Software.

More on Investing

Bank sign on traditional europe building facade
Bank Stocks

Should You Buy Canadian Bank Stocks After the Recent Correction?

Dividends and fairly valued Canadian bank stocks look attractive. But the macro picture could be a spoiler!

Read more »

Knowledge concept with quote written on wooden blocks
Investing

The 2 Best Stocks to Own in a Recession

Recessions cut demand, but essential services like Metro (TSX:MRU) could fare better.

Read more »

Group of industrial workers in a refinery - oil processing equipment and machinery
Energy Stocks

2 Energy Stocks (With Dividends) to Buy Amid the Market Correction

These dividend-yielding energy stocks look attractive to buy for the long term after their recent dip.

Read more »

Dividend Stocks

2 Undervalued TSX Dividend Stocks to Buy in July

These unloved TSX dividend stocks could deliver attractive returns in the back half of 2022.

Read more »

sad concerned deep in thought
Dividend Stocks

$20 Billion Telco Merger: More Concessions and Conditions Ahead?

The mediation process in the proposed telco merger could lead to more concessions and conditions before the competition watchdog grants…

Read more »

Question marks in a pile
Cryptocurrency

Is the Crypto Market Finally Recovering?

The decision to hold, buy, or sell crypto based on the current rally might be too immature. It would be…

Read more »

Target. Stand out from the crowd
Investing

Investing for Inflation: 2 Oversold TSX Stocks to Buy Now

Quebecor (TSX:QBR.B) is a dirt-cheap, mid-cap TSX stock that could help investors move through a high-inflation or recessionary world.

Read more »

Dividend Stocks

RRSP Investors: 2 Cheap TSX Dividend Stars to Buy for Total Returns

RRSP investors seeking attractive total returns can now buy top TSX dividend stock with high yields at discounted prices.

Read more »