3 Growth Stocks to Buy With $1,000 Right Now

Here’s why Shopify (TSX:SHOP), Constellation Software (TSX:CSU), and Open Text (TSX:OTEX) are three top growth stocks to buy now.

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Growth stocks are stocks with higher growth potential than their peers. This growth refers to growth in earnings as well as revenues. Most of these stocks belong to the tech and e-commerce sectors. 

Investors find these stocks attractive due to their higher returns. But you should know that higher returns involve higher risks. Hence, growth stocks might not suit every investor’s taste palate. 

Among growth stocks, tech and e-commerce stocks have performed better than average in 2022 in the Canadian share market. Analysts anticipate something similar in 2023. This article focuses on the top three growth stocks you can buy for $1,000 right now. 

Top growth stocks to buy now: Shopify 

Shopify (TSX:SHOP) is a leading e-commerce company based in Ontario. Due to the worldwide pandemic, the company had to deal with a number of macroeconomic challenges that affected both the company’s performance and yearly growth.

Nonetheless, a combination of cost-control efforts announced in the third quarter (Q3), and a future easing of year-over-year comparisons could equip Shopify for further success.

In comparison to the previous financial year, total revenue has climbed 26% to $1.7 billion, or 28% on a basis of constant currency, as per the latest Q4 reports. 

SHOP released +100 new product upgrades, many of which are intended to assist e-commerce platforms in expanding their customer base, streamlining the checkout process, and improving shipment management.

The organization is making some significant improvements in the area of shipping and delivery, as it works to enable merchants to outsource their operations.

Constellation Software 

WideOrbit Inc. is a U.S.-based media vertical market software developer. Constellation Software (TSX:CSU) and its conglomerate Lumine Group Inc. have entered a legal contract to merge with WideOrbit and acquire 100% of the company’s shares. 

Lumine Group will split from Constellation and will function as a standalone publicly traded business, following the anticipated acquisition’s conclusion and the recent public listing of the company’s subordinate voting shares. 

WideOrbit will function as an independent business unit within the Lumine Group’s portfolio of enterprises after becoming a fully owned subsidiary of that company.

Moreover, Constellation has declared that it has decided to pay a special dividend, which will be payable to all common shareholders of record as of February 16, 2023. On or around February 23, 2023, is when the dividend is anticipated to be paid.

Open Text 

The Q2 2023 financial results of Open Text (TSX:OTEX) exceeded analysts’ forecasts for earnings and revenue. OTEX’s performance exceeded forecasts for both sales and earnings per share.

The $897 million in revenue for OTEX has exceeded the $867.2 million estimate. It is significant to note that the company’s yearly recurring revenues, which account for 81% of total revenues, reached $725 million, which is an increase of 16%. Enterprise cloud reservations have also grown by 12% to $144.7 million.

At the end of January, Open Text completed the acquisition of Micro Focus. During Q3, Turtle Creek Asset Management Inc. grew its holdings in Open Text Co. shares by 52.9%.

Bottom line

Over time, I expect each of these growth stocks to perform well. These are each on my shopping list should we get another pull back.

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 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

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