4 Cheap Growth Stocks That You’ll Be Happy to Own by 2032

These fundamentally strong growth stocks are trading cheap. Buying and holding them for the long term will help you accumulate significant wealth.

potted green plant grows up in arrow shape

Image source: Getty Images

Growth stocks have lost substantial value this year. Fear of a slowdown in the economy led investors to lower their exposure to growth stocks, leading to a massive price correction. However, as top TSX growth stocks are trading at multi-year lows, now is the time to start buying them for the long term. Fundamentally strong growth stocks could recover swiftly, as the economy improves and generate stellar returns for their shareholders. 

So, if you have some spare cash, here are my top four picks you would be happy to buy now and hold until 2032. 

Shopify  

Tech stocks took a significant beating amid the recent selloff. With significant correction, tech stocks are looking like attractive long-term bets. Within the tech space, investors shouldn’t miss the opportunity to buy Shopify (TSX:SHOP)(NYSE:SHOP) stock at current levels. It has dropped nearly 80% from its peak and is trading at a significant discount.

Shopify stock is poised to gain from the reacceleration in e-commerce growth. Its aggressive investments in POS (point of sale) and fulfillment, the addition of new sales and marketing channels through partnerships with leading social media companies, and the growing adoption of payments and capital offerings provide a solid platform for growth and will drive its stock price higher. 

Aritzia

Aritzia (TSX:ATZ) stock has compounded investors’ wealth and has grown at a CAGR (compound annual growth rate) of 36.7% in the past three years, thus outperforming the market averages with its returns. This multi-channel fashion retailer benefits from strong demand and solid organic sales growth. Also, Aritzia is profitable. 

Looking ahead, Aritzia’s product innovation, geographic expansion, the opening of new boutiques, investments in brand awareness, and entry into new verticals (in intimates and swimwear) bode well for growth. Moreover, its solid control over expenses, focus on debt reduction, and stable free cash flows will fuel its growth and support the uptrend in its stock price. 

goeasy

Leasing and lending services provider goeasy (TSX:GSY) has been growing rapidly. goeasy’s revenue and net income have grown at a CAGR of 15.9% and 38.2%, respectively, since 2011. Further, the momentum in business has sustained in 2022. Its top line has grown by 30% in the six months of 2022, led by higher loan originations and volumes. Moreover, its net income rose by 15% year over year during the same period. 

goeasy revenues are expected to increase at a double-digit rate, reflecting benefits from higher loans and a wide product range. Moreover, its bottom line will benefit from increased sales, solid credit performance, and higher payment volumes. goeasy has hiked its dividend at a CAGR of 34.5%in the past eight years. Further, given the strength in its earnings base, goeasy could continue to increase its dividend at a solid rate. 

Docebo

Docebo (TSX:DCBO)(NASDAQ:DCBO) is growing fast, despite the economic reopening. It provides software, solutions and tech that support corporate e-learning. Its annual recurring revenues have been growing at a CAGR of 66% since fiscal year 2016. Meanwhile, it benefits from an increase in customer base, active users, and growth in average contract value (it’s increased more than four times since 2016).

Docebo’s strength in the base business, new product launches, acquisitions, and geographic expansion are expected to support its growth. Furthermore, higher revenues from its existing customers through its land and expand strategy and high retention rate are positives and should support the recovery in its stock price. 

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 has positions in and recommends Shopify. The Motley Fool recommends ARITZIA INC and Docebo Inc.

More on Tech Stocks

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

This is the Best AI Stock to Buy Right Now

Investors have a wide selection of AI stocks to choose from, although the best buy today is not the most…

Read more »

grow dividends
Tech Stocks

If This Fast-Rising Stock Isn’t Yet on Your Radar, it Should Be!

Here's why Constellation Software (TSX:CSU) remains a top TSX growth stock long-term investors ought to consider right now.

Read more »

cryptocurrency, crypto, blockcahin
Tech Stocks

1 Cryptocurrency Stock Soared 8% This Week, and it’s the Only 1 I’d Buy

Cryptocurrency stocks can be a dime a dozen, which is why this one stock stands out from the rest as…

Read more »

A bull outlined against a field
Tech Stocks

Bull Market Buys: 1 Magnificent Stock to Own for the Long Run

Here's why investors can consider gaining exposure to tech stocks such as Shopify in the ongoing bull run.

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

Why Shares of Celestica Stock Jumped 5% on Monday

Celestica (TSX:CLS) stock continues to see its share price rise higher, but not only because shares of Nvidia (NASDAQ:NVDA) are…

Read more »

Make a choice, path to success, sign
Tech Stocks

The Best and Worst Canadian Stocks So Far in 2024

The recent rate cut could benefit two Canadian stocks but would not lift two underperforming tech stocks.

Read more »

question marks written reminders tickets
Tech Stocks

Could This Under-the-Radar Canadian Stock Be the Next Shopify?

An under-the-radar Canadian stock could be the next Shopify, given its market-beating and stellar returns thus far in 2024.

Read more »

A worker uses the cloud for paperless work. tech
Tech Stocks

The Best Stocks to Invest $500 in Right Now

Got a little extra cash you are looking to invest right now? Here are three Canadian tech stocks that are…

Read more »