My 3 Top TSX Growth Stocks for January 2023

Are you looking for TSX growth stocks to buy this month? Here are my three top picks!

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Growth stocks haven’t had the smoothest of rides for the past couple of years. Because of that, many investors are actively staying away from these stocks. However, I think that’s the wrong approach. During times like these, investors should be scouring the stock market looking for opportunities to pick up shares of outstanding companies at a massive discount.

In this article, I’ll discuss three TSX growth stocks investors should buy in January 2023.

This beaten-down stock could still be a winner

When it comes to beaten-down growth stocks that could pay off in the long run, Shopify (TSX:SHOP) stands out as an obvious choice. This company has been repeatedly beaten down over the past year due to the current economic conditions. For those that are unfamiliar, rising interest rates and a slowing economy caused Shopify to lay off more than 10% of its staff in 2022. That was simply one catalyst in this stock’s downfall. Today, Shopify stock trades about 66% lower than where it was one year ago.

Despite those troubles, the Shopify investment thesis remains intact. This company is still a major player in the global e-commerce industry. Shopify also provides its merchants with every opportunity imaginable to acquire customers. It does this by establishing partnerships with some of the biggest names in the consumer industry, including Walmart, Meta Platforms, Spotify, and more. I believe this is a unique opportunity to buy shares of a great company at rock-bottom prices.

A blue-chip stock for your portfolio

Just because a stock is considered a growth stock doesn’t mean it’s inherently risky. By all measures, Constellation Software (TSX:CSU) should be considered a blue-chip stock. However, this stock’s performance can challenge even the most impressive of growth stocks. Since its initial public offering in 2006, Constellation Software stock has gained more than 12,100%. That represents a compound annual growth rate (CAGR) of more than 30% over the past 16 years.

Constellation Software has been led by Mark Leonard since its founding. Under his leadership, Constellation Software has acquired hundreds of vertical market software businesses. Constellation Software’s business model is as simple as it gets. It acquires great businesses and provides the resources and coaching required to turn them into exceptional businesses. As long as Mark Leonard remains at the head of this company, I believe Constellation Software stock could generate market-beating performances.

Covering this company for the first time

If you’re familiar with my writing, you’ll note that most of the growth stocks I cover on the Motley Fool tend to be tech or healthcare related companies. However, WSP Global (TSX:WSP) is a company worth mentioning, and I figure it’s about time I introduce it to readers. For those that are unfamiliar, WSP Global provides professional services across several sectors. This includes but is not limited to environmental, energy, healthcare, and transit.

Since its founding, WSP Global stock has gained about 450%. That represents a CAGR of about 20% over the past nine years. This return becomes a bit more impressive when you consider its 0.94% dividend yield. In October 2022, WSP Global reported $2.9 billion in quarterly revenue. That indicates a year-over-year increase of about 9%. WSP Global is a strong company that is largely unknown by Canadian investors. I think this is a great time to pick up shares of this company.

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.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Fool contributor Jed Lloren has positions in Constellation Software, Shopify, and Spotify Technology. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Constellation Software, Meta Platforms, Spotify Technology, WSP Global, and Walmart. The Motley Fool has a disclosure policy.

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