2 TSX Growth Stocks I’d Buy and Hold Forever

Shopify (TSX:SHOP) and Docebo (TSX:DCBO) are misunderstood growth stocks that could soar in 2023.

| More on:
Lady holding mobile phone and shopping bags

Image sources: Getty Images.

It seems like all we’ve heard about this year is chatter over the looming recession: how bad it will be, how long it will last, and what kind of damage it’ll inflict on our portfolios.

After the 2022 bear market in stocks and severe pressure on bonds, many Canadian investors are likely feeling anxious about checking their holdings. It’s a turbulent time. The Federal Reserve and Bank of Canada are hiking rates, even though they know the type of economic chaos they could cause. Indeed, inflation seems to be at top of mind for investors, consumers, and central banks around the world.

As we enter 2023, a recession is likely to work its course. Though the Bank of Canada thinks the storm is up ahead, many pundits also view the coming recession as a relatively mild one. Indeed, if central banks can pause or take a dovish pivot after the current tightening cycle, there’s a good chance that a soft landing can happen and corporate earnings can continue to climb, albeit at a slightly slower rate.

In any case, I think too many investors are discounting the potential for a huge turnaround in TSX growth stocks. Specifically, the growth plays that have already shed more than 60-80% of their value from peak to trough.

Sure, higher rates don’t bode well for high-multiple growth stocks lacking in profitability prospects. That said, there must a be a line in the sand drawn for such difficult-to-value securities. My guess is that such growth stocks have already been oversold. In that case, a correction to the upside could be in the cards within the next two to three years.

Consider Shopify (TSX:SHOP)(NYSE:SHOP) and Docebo (TSX:DCBO)(NASDAQ:DCBO), two misunderstood growth stocks that seem more like bargains right now.


It’s hard to believe Shopify has fallen more than 82% from its peak. It’s been a nasty plunge after the perfect storm caused Tobias Lütke’s innovative e-commerce firm to implode. Though investors aren’t a fan of the trajectory ahead of a recession, I do view Shopify as still the top innovator in the Canadian tech scene. And right now, investors are paying a fraction (less than a fifth) for SHOP stock of what they would have paid last year.

Shopify’s growth story is still strong, with a world of opportunity online (and now offline, with Shopify’s newly unveiled point-of-sales solution). Though getting into logistics, with the recent acquisition of Deliverr, complicates matters, I do think investors should put their faith in management as they transition through what seems to be a slight pivot amidst mounting macro headwinds.

Logistics is a tough game to compete in, and it could hurt Shopify’s profitability prospects for years to come. However, I do think many investors are too impatient to give the firm a chance to prove it can thrive in new market parallels.

Remember, Shopify stock surprised us all before, and I think it will do so again. At 8.2 times sales, I view SHOP stock as severely undervalued.


Docebo is another pandemic winner that has crashed, shedding more than 60% of its value from peak to trough.

The $1.3 billion firm, which provides AI-powered LMS (Learning Management System) software for clients to improve their remote productivity, may be down and out, but it’s still innovating. With such a magnificent product that’s more than able to keep growing on the other side of this recession, I view the plunge in the stock as an overreaction.

Docebo may not be sustainability profitable yet. But its recent quarterly beat was encouraging ($0.06 EPS vs. expectations of a $0.07 per-share loss). I think Docebo’s on the right track, and as it continues harnessing the power of AI, the stock could be quick to turn once rates pause and reverse.

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 Joey Frenette has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Docebo Inc. The Motley Fool has a disclosure policy.

More on Tech Stocks

Man holding magnifying glass over a document
Tech Stocks

Watching This 1 Key Metric Could Help You Beat the Stock Market

One key metric that Buffett looks at is the return on equity. Here's why you should watch it.

Read more »

Daffodils in bloom
Tech Stocks

2 Best “Magnificent Seven” Stocks to Buy in April

Two surging mega-cap tech stocks are the best buys among the “Magnificent Seven” this April.

Read more »

clock time
Tech Stocks

Up 47%, Is it Time to Buy Payfare Stock?

Payfare (TSX:PAY) stock has been rising higher in the last six months after dropping significantly since 2021. Is it time…

Read more »

Clock pointing towards a 'sell' signal
Tech Stocks

2 Canadian Growth Stocks to Buy and 1 to Sell

Financial growth stocks like EQB Inc (TSX:EQB) are much cheaper than tech growth stocks.

Read more »

Target. Stand out from the crowd
Tech Stocks

The Most Expensive Stock in Canada Is a Top Buy Today

This stock might be expensive, but it's proven time and again that it's worth its weight in gold. And it's…

Read more »

Upwards momentum
Tech Stocks

CSU Stock: The Best Canadian Growth Stock Pick in Tech?

Constellation Software (TSX:CSU) stock could be in for a bit of dip over the nearer term.

Read more »

Volatile market, stock volatility
Tech Stocks

Nvidia Stock Is Falling Into a ‘Correction.’ Time to Buy the Dip?

Nvidia (NASDAQ:NVDA) has seen shares surge in the last year, but have entered correction territory after dropping over 10% from…

Read more »

Tech Stocks

Is Constellation Software Stock a No-Brainer Buy?

Even the most consistent stocks are not infallible and may be vulnerable against certain conditions. So, it’s worth researching even…

Read more »