Motley Fool readers familiar with my articles will know that I focus on investing in growth stocks. This is because I’m still in the wealth-accumulation stage of my life, and growth stocks have the potential to help me achieve my goals a lot faster than other types of assets. With that said, there are a handful of companies that I can see myself buying for a very long time.
In this article, I’ll discuss two of my favourite TSX growth stocks to buy right now.
This is my top pick
Today, my top TSX growth stock to buy is Shopify (TSX: SHOP). In fact, I’m so bullish on this company that I can still see myself buying shares years from now. For those that are unfamiliar, Shopify is an e-commerce company. It provides a platform and many of the tools necessary for merchants to operate online stores. That includes capital, payment, and shipping services. It’s estimated that more than one million merchants rely on Shopify today. That includes first-time entrepreneurs and large-cap enterprises.
In my opinion, Shopify stands out from its competitors by leveraging its massive enterprise partnership network. By giving its merchants access to platforms like YouTube, Spotify, Walmart, and more, Shopify stores have every opportunity to land in front of consumers. It’s perhaps that online presence that allowed Shopify to continue increasing its revenue in 2022, despite it being a very tough economic environment for consumers.
Shopify stock currently trades at about $55 per share. That’s nearly 75% lower than its all-time high. While that may be troubling to some investors, I believe it presents an incredible opportunity for growth investors. E-commerce is only going to grow in the future and with Shopify’s strong platform, the company could grow strongly alongside the online shopping trend.
This proven winner could be a great buy
Not all growth stocks are young, unproven entities. In fact, some Canadian blue-chip stocks present amazing growth potential. That’s exactly what Constellation Software (TSX: CSU) brings to the table. This company was founded in 1995 and first went public in 2006. To this day, Constellation Software has continued to grow at a very fast pace.
As a tech conglomerate, this company has acquired hundreds of vertical market software (VMS) businesses. For most of its history, Constellation Software has focused on small- and medium-sized businesses. Now, with large VMS business acquisitions being incorporated into its playbook, Constellation Software offers another avenue for growth.
This stock has gained more than 12,500% since its initial price offering in 2006. That represents a compound annual growth rate of more than 30%. The law of large numbers states that companies should experience slower growth as they increase in size. However, investors could still greatly outpace the broader market if Constellation Software’s growth rate falls to about half of what it’s done over the past 17 years.
