Market Correction: Don’t Miss These TSX Growth Stocks

A weak macro environment and recessionary fears have made growth stocks unattractive. As investors turned their back on growth stocks, top names like Shopify (TSX: SHOP)(NYSE:SHOP) erased most of their gains and are trading at levels significantly below their highs. 

With an uncertain economic trajectory and fear of a slowdown in consumer spending, growth stocks could continue to lag the broader markets in the short term. However, the sharp correction in their prices indicates that investors shouldn’t miss this opportunity to accumulate them at current levels. 

Take Shopify, for instance. Its stock has lost over 80% of its value from the 52-week high. However, its strong fundamentals, multiple growth catalysts, and structural shift in selling models toward omnichannel platforms point to a steep recovery in its stock price in the long term. 

Shopify continues to invest in its e-commerce infrastructure. Moreover, it is partnering with top social media companies and adding new features to its merchant solutions. These measures indicate that Shopify could continue to add more merchants to its platform. Further, its focus on strengthening its fulfillment and entry into new markets bode well for growth. 

While Shopify is one of my top picks for the long term, let’s look at a few more stocks that are trading cheap and have solid potential to deliver stellar returns. 

Tech stocks look attractive

Investing in tech stocks in 2022 may not be profitable in the short term. However, high-quality tech stocks tend to outperform the broader markets by a wide margin in the long term. Within the tech sector, AI-based enterprise learning platform Docebo (TSX: DCBO)(NASDAQ: DCBO) could be a solid bet at current levels. 

Docebo stock has taken a significant beating, despite solid financial performances. Further, its key performance metrics remain strong, indicating that Docebo stock could bounce back strongly as economic headwinds ease. 

Its annual recurring revenues are growing swiftly. Meanwhile, it continues to add new customers with multi-year contracts. Further, its client retention rate remains high, and deal value is increasing. Additionally, Docebo is growing revenues from its existing customers at limited incremental costs through its land-and-expand strategy. Overall, the ongoing momentum in its business, strong growth prospects, and low stock price support my investment case. 

Along with Docebo, Lightspeed and Nuvei are also worth investing in for the long term. Shares of both these companies are also trading well below their 52-week highs. Meanwhile, they continue to deliver robust organic growth. Also, favourable management commentary, multiple growth vectors, focus on opportunistic acquisitions, and a large addressable market provides a multi-year growth opportunity for these companies.  

A storage space provider 

StorageVault Canada (TSX: SVI) is another stock worth keeping an eye on. The company offers storage space to commercial and individual clients and has been delivering solid growth due to the strong demand for its offerings. It continues to deliver solid same-store net operating income and strong AFFO per share, which is positive.

StorageVault’s focus on owning and operating storage space in the top Canadian markets bode well for long-term growth. Further, its records management storage services and complementary portable storage units support its growth.  

Its growing scale, the expansion of rentable space, high occupancy, and last-mile solutions bode well for growth. Further, the growing Canadian population and lack of warehouse space will likely support its growth.