Got $3,000? 3 Growth Stocks I’d Double Down on Right Now

I’d look to buy Lightspeed Commerce (TSX:LSPD) and two other tech stocks on the dip going into the midpoint of 2023.

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Growth from coins

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The growth selloff has been quite furious, but dip buyers need to be careful how they proceed. Undoubtedly, the days of getting compensated with quick gains from braving corrections seem to be over. In any case, those who look to growth must ensure they’re in it for the long haul, not just the next few weeks or months. Undoubtedly, this bear could drag on, and anyone hoping to make money over such a near-term timespan could be left with stiff losses.

It’s hard to be an investor in a bear market, especially with the layoffs sweeping through the tech scene and the skyrocketing costs of living that are making discretionary purchases and investing for one’s future nice to have.

Though the TFSA (Tax-Free Savings Account) limit has been hiked from $6,000 to $6,500 for 2023, you don’t need to make the maximum contribution if you don’t have the means. A more realistic goal for young Canadian investors may be $3,000 or less. Indeed, any amount you can set aside to invest in your future is meaningful. Whether it’s the full $6,500 amount, half or that, or $500, you should look to the equity markets for value if you’ve got extra cash you don’t see yourself touching over the next five years out.

In this piece, we’ll look at three growth stocks suitable for the brave and young.

Nuvei

Nuvei (TSX:NVEI) is quickly becoming one of my favourite growth stories in the Canadian tech scene. Undoubtedly, the Montreal-based payments platform was dealt a tough blow last year. The stock is off around 75% from its high and though many have moved on, I think now is the time to move in on a name that I view as severely oversold.

Indeed, Nuvei’s initial public offering (IPO) run-up garnered a lot of hype. IPO booms and busts are nothing new. In any case, I think Nuvei is a decent long-term contrarian play here. Recently, Goldman Sachs hiked its rating from buy to neutral, citing expectations of higher growth going into the back half of 2023.

Given the pace of deal-making, I’d not be shocked if Nuvei turns a corner this year. Regardless, I view Goldman’s 30% upside target as very realistic.

Constellation Software

When it comes to tech stocks, Constellation Software (TSX:CSU) is a steady ship sailing through a hurricane. believe it or not, the stock is flirting with new highs, while most other names are off considerably from their highs.

On Wednesday, stocks were under pressure, but CSU stock eked out a gain just shy of 1%. Indeed, Constellation is one of few firms with the liquidity to take advantage of opportunities within the tech space. Valuations are contracting, giving Constellation a lot of room to make a move over the next year.

At 74.92 times trailing price to earnings, the name isn’t cheap. But it’s been so steady, with a catalyst in retreating valuations in the small-cap tech scene.

Lightspeed Commerce

Finally, we have Lightspeed Commerce (TSX:LSPD), a commerce enabler that had to lay off 300 people. Undoubtedly, higher rates and macro conditions have been hard on the firm.

The stock is down more than 86% from its high. The bottom remains a mystery. Looking further out, I remain a fan of the growth story post-recession. At 3.6 times price to sales, LSPD is a relative bargain for those looking to play a rebound in commerce.

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 Nuvei. The Motley Fool recommends Constellation Software, Goldman Sachs Group, and Lightspeed Commerce. The Motley Fool has a disclosure policy.

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