3 Explosive Growth Stocks I’d Buy in February 2023

These growth stocks have done the absolute best in the last month, but what should you do in February 2023?

| More on:
A colourful firework display

Image source: Getty Images.

There are, surprisingly, quite a few stocks on the move right now. Yet not all growth stocks are ones I would buy this month. Today, I’m going to look at the top three growth stocks I would recommend in February 2023 and see whether they deserve a long-term hold.

Shopify stock

Shopify (TSX:SHOP) shares are already up 41% in the last month alone among growth stocks. This comes down to a few changes the company made in the last few weeks and with earnings on the way as well. The biggest market mover was that the company finally increased its prices, boosting them by 33% across the board.

While this, of course, isn’t great news for new clients, it just shows that the company is taking seriously the fact that shares are down, interest is down, and inflation means there needs to be a higher price on this company’s product.

After laying off 10% of its employees in the last year, hopefully, this proves Shopify stock is taking its future seriously. If it hopes to continue strength on the other side of the recession, it needs to have a strong balance sheet. And investors seem confident that this increase has done the trick, though only time will tell.

Nuvei stock

Another popular stock of the last few years was Nuvei (TSX:NVEI) with the payment platform reaching all-time highs before sinking. Now, shares are up 38% in the last month alone among growth stocks. And this comes down to a number of acquisitions and partnerships for the company.

Most recently, Nuvei stock announced four new partnerships in the last two months as well as one acquisition for investors to sink their teeth into. What’s more, Nuvei stock continues to beat out earnings estimates again and again. Yet it still trades at a whopping 81.7 times earnings.

Is this company worth your time in the long term? Given the number of partnerships it’s signing on with companies as large as Virgin Atlantic, these are multi-year deals that will bring in recurring revenue. After a recession, Nuvei stock could certainly see sustained growth that lasts years as well from these new deals alone.

Cameco stock

Finally, Cameco (TSX:CCO) has also seen incredible growth of 24% in the last month among growth stocks. This is part of sustained growth over the last three months, as the company restarted its MacArthur mine and is now producing uranium once more.

After seeing shares rise from retail investor interest before falling, investors have been nervous of investing in this volatile stock once more. But what it comes down to in this case is whether you’re going to be a long-term investor or not.

A short-term investment would be about one to three years. In that case, you could do well with Cameco stock — even over the next five years or so. However, in the next decade there’s going to have to be a shift towards other products besides uranium, which is a finite resource. And it’s unclear where Cameco stock will stand at that point.

So, while shares are up now, it won’t be forever. Therefore, plan on creating an investment that comes with a price alert for when you’re ready to sell.

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 Amy Legate-Wolfe has positions in Shopify. The Motley Fool has positions in and recommends Nuvei and Shopify. The Motley Fool has a disclosure policy.

More on Investing

edit Sale sign, value, discount
Energy Stocks

2 Cheap Canadian Stocks You Can Buy for Less Than $50

You can buy Suncor Energy stock, and this gold stock at cheap valuations today

Read more »

A airplane sits on a runway.
Stocks for Beginners

Are Airline Stocks a Good Buy in March 2023?

Few companies have felt the pandemic as much as airlines. But now that markets are open, are airline stocks a…

Read more »

Happy diverse people together in the park
Dividend Stocks

Gen Z Investors: How to Make $2.8 Million Before Retirement

Gen Z investors have one thing to their advantage: time. Invest wisely and practically any investment could turn into millions.

Read more »

A plant grows from coins.
Dividend Stocks

The 2 Top Monthly Dividend Stocks for March 2023

These are the top two monthly dividend stocks you can buy in Canada in March 2023.

Read more »

Target. Stand out from the crowd

If I Could Only Buy 1 Stock Right Now, This Would Be it

Are you looking for that one stock to add to your portfolio? This would be my top pick right now.

Read more »

Canadian Dollars
Dividend Stocks

Got $6,500? Earn $48/Month Tax-Free Passive Income

High-dividend-paying Canadian stocks include Diversified Royalty. Let's see how a TFSA investment of $6,500 can help you earn $48 in…

Read more »

A worker uses a double monitor computer screen in an office.
Tech Stocks

Better Buy: Shopify vs. Constellation Software

Are you interested in buying a tech stock? Find out which is the better buy between Shopify and Constellation Software.

Read more »

Piggy bank next to a financial report
Bank Stocks

U.S. Bank Meltdown: These 2 Canadian Banks Are Safer

Canadian banks like Royal Bank of Canada (TSX:RY) are safer than the collapsing U.S. banks.

Read more »