Got $5,000? These Are 2 of the Best Growth Stocks to Buy Right Now

Despite the potential volatility on the way this year, growth-seeking investors can consider taking a better look at these two TSX tech stocks at their current levels.

| More on:
A stock price graph showing growth over time

Image source: Getty Images.

With most of the 2010s spent in a low-interest-rate environment, growth-seeking Canadian investors did not have much to complain about. However, 2022 came along with increasing inflationary pressure and the start of a series of interest rate hikes to change the economic landscape in its entirety.

While it took until 2022 for the Canadian economy to see its bull run end, the pandemic was the primary cause of the situation we are in right now. As interest rates rise to keep inflation under control, most investors have veered away from high-risk and high-growth investments. With a greater focus on value rather than high-growth potential, many of the top growth stocks have seen investor interest wane.

Investors with a long-term mindset should not let short-term losses phase them from investing in growth-focused Canadian stocks. If you have a well-balanced self-directed portfolio to mitigate losses during market downturns, it might be a good idea to dip your toes in growth stocks again.

Today, I will discuss two growth stocks you can consider with a long investment horizon.


Docebo (TSX:DCBO) is a $1.46 billion market capitalization Canadian tech company offering enterprise-facing cloud-based learning platforms. The company went public in 2019, just in time to take advantage of a changing global landscape.

The pandemic came along to create a surge in the remote work culture, making solutions like Docebo’s cloud-based learning platforms essential for organizations across various industries.

As the world ventured into the post-pandemic era, the demand for its software remained but became much lower than the surge as the pandemic peaked. The tech sector selloff did not spare Docebo stock and saw its valuation decline.

As of this writing, Docebo stock trades for $44.46 per share, down by almost 40% from its 52-week high. Even after a hefty discount, it does not trade cheaply. However, it can be an excellent pick if you want to invest in a stock with long-term, multi-bagger growth potential.

Descartes Systems

Descartes Systems Group (TSX:DSG) is another pick to consider for long-term, growth-seeking investors.

The $8.04 billion market capitalization multinational tech company specializes in logistics software, supply chain management software, and cloud-based services for logistics companies worldwide. Despite the troubles for the broader tech sector, Descartes Systems did reasonably well in 2022.

The niche it operates in, as it serves the logistics industry offers Descartes Systems stock a degree of lower volatility than most of its tech sector peers. As of this writing, Descartes Systems stock trades for $94.84 per share.

It is up by an impressive 170.43% from this point five years ago, despite a 16.65% decline from its all-time high in November 2021. Considering the demand for its services and immense long-term growth potential, it can be an excellent pick for investors at current levels.

Foolish takeaway

A word of warning to growth-seeking investors: stock market investing is inherently risky, and growth stocks entail a higher degree of capital risk. Volatile market environments resulted in substantial declines in growth stocks across all sectors, especially Canadian tech stocks.

With uncertainty and the fear of a recession continuously looming overhead, these two TSX growth stocks can see valuations decline this year.

If you have a decade or so of a timeline in mind, the TSX presents plenty of excellent opportunities to consider. Docebo stock and Descartes Systems stock are two growth stocks you can consider adding to your self-directed portfolio for this purpose.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Descartes Systems Group and Docebo. The Motley Fool has a disclosure policy.

More on Investing

Doctor talking to a patient in the corridor of a hospital.

TFSA: Healthcare Dividend Stocks Are Perfect for Passive Income

Top healthcare dividend stocks like Extendicare Inc. (TSX:EXE) and others can provide huge passive income in your TFSA.

Read more »

TFSA and coins
Tech Stocks

TFSA: Invest in These 2 Stocks for a Legit Chance at $1 Million

Are you interested in building a $1 million portfolio? Invest $20,000 in these two stocks!

Read more »

edit Person using calculator next to charts and graphs

The Top TSX Stock on My Watch List Right Now

Here's why Alimentation Couche-Tard (TSX:ATD) remains a top TSX stock that long-term investors seeking growth and yield will want to…

Read more »

Hourglass projecting a dollar sign as shadow

3 Stocks to Add to Your TFSA ASAP

Given their stable cash flows and solid underlying businesses, these three stocks are excellent additions to your TFSA in this…

Read more »

edit Person using calculator next to charts and graphs
Dividend Stocks

Better Buy: Fortis Stock vs Enbridge

Fortis stock and Enbridge are top dividend stocks on the TSX today. Which stock is better buy for safe dividend…

Read more »

Canadian Dollars
Dividend Stocks

How to Make $1,500 in Passive Income 4 Times a Year

Blue-chip TSX stocks such as Enbridge can enable investors to create game-changing wealth over the long term.

Read more »

Woman has an idea

5 Stocks You Can Confidently Invest $500 in Right Now

Consider putting your surplus cash in these stocks for stellar capital gains.

Read more »

Dividend Stocks

TFSA: How to Easily Turn $10,000 Into $500/Year of Passive Income

You don't need to be a stock market expert to turn $10,000 into a $500 of tax-free passive income. Here's…

Read more »