2 of the Best Canadian Growth Stocks to Invest $1,000 in Now

Here are two of the best Canadian growth stocks that you can buy right now with an investment of as little as $1,000 to hold for the long term.

| More on:
grow money, wealth build

Image source: Getty Images

The ongoing macroeconomic concerns are continuing to heighten the stock market volatility lately. Mainly, rising inflationary pressures and fears of a near-term recession have led to the market selloff in 2022, and high-growth stocks across sectors have been hit the hardest.

Nonetheless, long-term investors can look at the recent market selloff as an opportunity to buy some of the best Canadian growth stocks at a big bargain. While fundamentally strong growth stocks may remain highly volatile in the short term, they offer a great risk-to-reward scenario if you hold them for the long term.

In this article, I’ll talk about two of the best growth stocks in Canada you can consider buying right now with as little investment as $1,000 to expect healthy returns on your investment in the next five or more years.

BlackBerry stock

BlackBerry (TSX:BB)(NYSE:BB) is a Waterloo-based tech company with a market cap of nearly $4.4 billion. Its stock currently trades at $7.63 per share with slightly more than 35% year-to-date losses. While BlackBerry primarily focuses on providing cybersecurity solutions to businesses and government organizations across the globe, the company has become increasingly focused on developing advanced artificial intelligence and machine learning-based technological solutions for the auto industry in recent years.

In the May quarter, BlackBerry reported a 6% YoY (year-over-year) rise in its cybersecurity segment revenue to US$113 million, as the demand for online security software solutions is growing positively after witnessing a surge during the COVID-19 pandemic phase. During the quarter, the company also registered a 19% YoY increase in its Internet of Things (IoT) segment revenue.

I expect the demand for BlackBerry’s IoT solutions to accelerate further, as global auto production returns to normal in the coming quarters after witnessing obstacles due to the global supply chain crisis. These factors should help its stock soar once the macroeconomic concerns start subsiding.

Lightspeed stock

Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) is another beaten-down growth stock in Canada to consider right now. This Montréal-based omnichannel commerce platform provider has a market cap of $3.6 billion, as its stock trades at $23.77 per share with 54% year-to-date losses.

While this growth stock has struggled in the last year, the company continues to maintain a strong sales growth trend. In the June quarter, Lightspeed’s total revenue rose by 50% YoY to US$173.9 million with the help of the return of in-person shopping and dining globally amid easing pandemic-related restrictions. Now, the company expects its organic subscription and transaction-based revenue growth in the ongoing fiscal year to be in the range of 35% to 40% YoY.

Despite a challenging macroeconomic environment, Lightspeed’s management is focused on diversifying its business model and expanding its global presence by increasing the number of customer locations. These efforts should help the company’s financials grow at a faster pace than ever before in the coming years, I believe. This could be one of the reasons why Lightspeed’s management remains confident that the tech firm should reach an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) breakeven level in the next fiscal year, which will end in March 2024.

Overall, given its strong fundamental outlook and continued strong top-line growth, despite the economic slowdown, I find Lightspeed stock worth considering at the moment.

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.

The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Stocks for Beginners

Stocks for Beginners

3 Growth Stocks Wall Street Might be Sleeping On, But I’m Not

These growth stocks have more than doubled in the last year, yet there could certainly be more growth on the…

Read more »

Coworkers standing near a wall
Energy Stocks

3 Things About Enbridge Stock Every Smart Investor Knows

Enbridge stock (TSX:ENB) continues to be one of the best dividend stocks out there, but with a payout ratio of…

Read more »

healthcare pharma
Stocks for Beginners

2 Healthcare Stocks You Can Buy and Hold for the Next Decade

These two healthcare stocks are showing strong signs of growth for the next decade and are already improving by leaps…

Read more »

question marks written reminders tickets
Stocks for Beginners

Better Buy: Bombardier Stock or CAE?

Both Bombardier (TSX:BBD.B) stock and CAE (TSX:CAE) stock have their upsides and downsides, but which is the better buy today?

Read more »

Airport and plane
Stocks for Beginners

If You’d Invested $1,000 in Air Canada Stock in 2014, This Is How Much You Would Have Today

Not everyone has seen their shares of Air Canada (TSX:AC) stock decline. But if you were to invest today, would…

Read more »

growing plant shoots on stacked coins
Dividend Stocks

4 Ways to Grow $100,000 Into $1 Million in Retirement Savings

Anyone can build a million-dollar retirement portfolio. Here are four ways you could practically grow $100,000 to $1 million.

Read more »

A shopper makes purchases from an online store.
Dividend Stocks

3 Reasons to Buy TFI Stock Like There’s No Tomorrow

TFI stock (TSX:TFII) had a hard 2023, but now it's set up for a solid 2024, with an acquisition that…

Read more »

Dividend Stocks

5 Secrets of TFSA Millionaires

These lesser-known secrets can help you set up the perfect long-term portfolio and achieve a million-dollar TFSA!

Read more »