Buy These 2 Growth Stocks on the Dip

Here’s why Constellation Software and Shopify are two top growth stocks to buy right now.

| More on:
grow dividends

Image source: Getty Images

When stock prices dip, investors have an opportunity to grab stocks of companies that are otherwise a bit expensive to dive into. Growth stocks have long been investor favourites since they offer the potential for higher returns down the line. 

With the potential for an upcoming recession, continued interest rate hikes, and an ongoing war in Europe, growth stocks seem to be safe investing options. These stocks offer investors the possibility of higher wealth accumulation through capital gains. Here are two popular growth stocks that are currently attractive bets for long-term investors. 

Top growth stocks to buy: Constellation Software 

Constellation Software (TSX:CSU) is a diversified software company based in Toronto. This tech giant builds, acquires, and manages businesses related to vertical market software. It operates in Canada, the United Kingdom, the United States, and other key markets.

One of the reasons I’ve continued to be bullish on Constellation from a long-term perspective is the company’s business model. Via a growth-by-acquisition model, Constellation has found a way to continue to generate meaningful growth, while improving returns over time. Indeed, this company has one of the best return on invested capital metrics of its peers. Thus, it appears the more companies that Constellation acquires, the better it performs.

Some of this has to do with synergies that the company is able to create over time. Plus, Constellation Software has benefited from the lion’s share of its business being in the United States. As a result, the strong U.S. dollar has actually been a tailwind for this company. The rest of the industry, shall we say, doesn’t have it as good. Thus, on a comparative basis, I think Constellation looks much more attractive right now.

Constellation stock isn’t cheap by any stretch of the imagination. But for investors seeking quality in the realm of growth stocks, this is about as good as it gets right now.


Shopify (TSX:SHOP)(NYSE:SHOP) is a global e-commerce company that is also headquartered in Ontario. The company offers an e-commerce platform for online merchants via a range of services like customer engagement tools, payment, marketing, etc. 

Despite losing an incredible 70% of its value this year alone, Shopify’s previous growth trajectory means this stock is still trading orders of magnitude higher than where it was five years ago. Accordingly, for those who bought SHOP stock years ago and have done nothing, they’re still ahead of the game.

Shopify is a company I think of as a truly long-term buy and hold pick. Investors in this company need to be willing to hold through serious volatility, such as what we’re seeing now. That said, the future is bright for this stellar growth name.

Market research from BuiltWith shows that Shopify holds a 29% share of U.S. e-commerce websites. Moreover, the company has added approximately 2.6 million online retailers to its platform. Accordingly, Shopify now enjoys a 19% market share in the U.S. e-commerce segment. Now trading below $40 per share, I think SHOP stock looks very attractive for those willing to buy and hold on tight.

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 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

More on Tech Stocks

Growing plant shoots on coins
Tech Stocks

3 Growth Stocks That Look Ready to Double in 1 Year

These three growth stocks are "sleeping giants" ready to blast off in 2023 and beyond for investors who pick them…

Read more »

A data center engineer works on a laptop at a server farm.
Tech Stocks

3 Top Tech Stocks That Could Make You Rich by Retirement

Here are three of the best Canadian tech stocks with attractive dividends that you can buy now to get rich…

Read more »

potted green plant grows up in arrow shape
Tech Stocks

2 Growth Stocks to Invest $1,000 in Right Now

Are you looking for growth stocks to add to your portfolio? Here are two top picks!

Read more »

A shopper makes purchases from an online store.
Tech Stocks

Is Amazon a Black Friday Buy?

Last year, Amazon reported record Black Friday weekend sales. This year, the company has to contend with consumers who have…

Read more »

gaming, tech
Tech Stocks

Better Gaming Buy: Take-Two Stock or Electronic Arts?

Investors looking to add a gaming stock to their portfolios might consider buying Take-Two or Electronic Arts.

Read more »

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

2 Tech Stocks to Buy Before a Rebound in 2023

These two tech stocks with strong earnings and winning business models will likely lead the sector’s rebound in 2023 when…

Read more »

analyze data
Tech Stocks

3 Date Night Ideas That Could Actually Help You Invest

If you're missing out on this opportunity to invest in a down market, your date night ideas could be to…

Read more »

grow dividends
Tech Stocks

TFSA Investors: Here’s Where to Park That Higher $6,500 Contribution

Here's why TFSA investors may want to consider Shopify (TSX:SHOP) as a long-term holding in this growth-focused fund right now.

Read more »