Got $1,000? Buy This Growth Stock Before it Takes Off

Docebo (TSX:DCBO) is a great stock for long-term investors to buy and hold at these depths.

| More on:
edit Woman calculating figures next to a laptop

Image source: Getty Images.

January was a pretty solid month for investors who stood by markets in their moment of wobbliness. Indeed, many Tax-Free Savings Account (TFSA) investors are likely wondering if they should put their latest $6,500 contribution to work while markets are showing signs of bullish behaviour. On the flip side, we could be in the midst of a short-lived bear bounce, in which case it’d be better to temper one’s enthusiasm amid January’s remarkable pop.

Though I don’t doubt the sustainability of last month’s gains, I think it’s wise to start thinking about dollar-cost averaging (DCA) into new positions. That way, you won’t be shocked if markets turn south once again. At the end of the day, timing Mr. Market’s next move is impossible. That’s why it’s a good idea to take the timing out of the equation by committing to partial purchases over time.

Buying the dip in 2023: Don’t exhaust your liquidity all at once!

Dip-buying isn’t getting the same quick rewards it used to. Regardless, investors need to be focused on the next three years rather than the next three weeks or months! 2022 was a year that saw speculators get crushed, as hyper-growth plays with extended valuations took the biggest plunge since the dot-com bust of 2000. 2023 could see a recession and the return of sound long-term investing.

Indeed, 2022 was a lesson for many new investors. Investing isn’t easy and it certainly shouldn’t be fun. At the end of the day, investing is about trying to maximize your returns relative to risks over the time horizon you’re looking to build wealth over. The odd bear market isn’t such a big day if you’ve got your focus set on your longer-term horizon.

Even with such a mindset, it’s tough to brave the market wreckage with all the negativity on television. In any case, here are one intriguing growth stock I’d look to buy with an extra $1,000 in February. Though I’m not against ploughing the entirety of your 2023 TFSA contribution in one go, I think averaging down is a good move for those investors who don’t have considerable liquidity.

By inching in, you’ll ensure you won’t be left empty-handed should the bear’s roar return to Wall and Bay Street!

When it comes to growth plays, it’s especially important to ensure you’ve got liquidity to keep taking advantage of the bargains as they appear. Without further ado, consider Docebo (TSX:DCBO).

Docebo: A Canadian AI stock that could have a comeback year in 2023

Docebo was a huge pandemic winner that shed a considerable amount of its value last year. From peak to trough, shares lost more than 72%. Though shares have been marching higher in recent months, investors must be ready for anything when it comes to the artificial intelligence (AI) leveraging LMS (Learning Management System) software developer.

With AI in the spotlight over the hype surrounding OpenAI’s ChatGPT, I’d argue that now’s a great time to take a step back to consider the many firms that are harnessing the power of AI to help firms maximize productivity. Sure, the work-from-home trend has cooled, but Docebo remains an innovative firm that could continue to win big clients through 2023.

Docebo’s a hard stock to value amid rising rates. That’s why I think the name is a prime candidate for a dollar-cost averaging approach. If you’re a young investor, Docebo is one tech stock to watch, as the growth trade looks to climb higher.

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 recommends Docebo. The Motley Fool has a disclosure policy.

More on Investing

Hour glass and calendar concept for time slipping away for important appointment date, schedule and deadline
Dividend Stocks

How to Build a Bulletproof Monthly Passive-Income Portfolio With Just $10,000

Here’s how to build a diversified portfolio with dividend stocks that, as a group, pay out in every month of…

Read more »

A plant grows from coins.
Dividend Stocks

Invest $10,000 in 2 TSX Stocks for $606/Year in Passive Income

Shares of these two fundamentally strong companies can start a worry-free passive income stream.

Read more »

dividends grow over time
Dividend Stocks

2 Top Dividend Stocks That Keep Raising Their Payouts

In addition to their solid dividend growth track record, these top dividend stocks also offer strong growth potential for the…

Read more »

Various Canadian dollars in gray pants pocket

3 No-Brainer Stocks to Buy Under $50

Investing in a core portfolio needs no-brainer stocks you can invest in at any time. These stocks you can buy for…

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background

RRSP Pension: 2 Dividend Stocks to Buy on the Latest Dip

These top TSX dividend stocks now offer high yields.

Read more »

People walk into a dark underground mine.
Metals and Mining Stocks

How to Turn Your TFSA Into a Gold (or Copper) Mine Starting With $10,000  

These two top stocks can turn any TFSA into a gold mine -- or a copper mine, if you really…

Read more »

Dots over the earth connecting the world
Stocks for Beginners

Emerging Markets: Opportunities for High Returns in 2024

Are you looking for growth this year? Emerging markets could be one of the best areas to seek out high…

Read more »


My Top 5 TSX Stocks to Buy Right Now for Massive Returns in a Decade

These five TSX stocks have impressive operations and solid growth potential, making them five of the best to buy now.

Read more »