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

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

Payday ringed on a calendar
Dividend Stocks

How Much to Invest to Get $500 in Dividends Every Month

These three monthly paying dividend stocks could help you earn over $500 monthly in passive income.

Read more »

Bank sign on traditional europe building facade
Bank Stocks

Canadian Bank Stocks: Buy, Sell, or Hold?

Canadian bank stocks are rock-solid investments, but one is a no-brainer buy following the recent interest rate cut.

Read more »

online shopping
Investing

Ring! Ring! Serious Yield Calling at These 3 Telecom Stocks

BCE (TSX:BCE) and other high-yield telecoms worth watching as their yields soar further.

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

TFSA Maxed Out? Here Are 5 Other Ways to Grow Your Wealth in Canada

Canadians have other options to grow wealth after maxing out their TFSA contribution limits.

Read more »

A man smiles while playing a video game.
Dividend Stocks

RRSP: 2 High-Yield Dividend Stocks to Consider Now

These top TSX dividend stocks offer attractive yields today for RRSP investors.

Read more »

edit Sale sign, value, discount
Dividend Stocks

2 Bargain Stocks You Can Buy Today and Hold Forever

These two stocks are reliable and trade ultra-cheap, making them among the best TSX stocks to buy now and hold…

Read more »

Person holds banknotes of Canadian dollars
Dividend Stocks

Top 3 Dividend Stocks Yielding Over 7% to Buy in June 2024

Are you looking for the best of the best dividend stocks? These three are the ones that belong on your…

Read more »

Online shopping
Tech Stocks

Up 42% from 52-Week Lows, Is Shopify Stock Still a Buy?

Shopify (TSX:SHOP) stock looks like one of Canada's best growth stocks. And right now, it looks like it's on sale,…

Read more »