My 2 Favourite TSX Growth Stocks to Buy Right Now

Are you interested in TSX growth stocks? Here are my two top picks!

| More on:
Money growing in soil , Business success concept.

Image source: Getty Images

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.

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 Jed Lloren has positions in Constellation Software, Shopify, and Spotify Technology. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Constellation Software, Spotify Technology, and Walmart. The Motley Fool has a disclosure policy.

More on Investing

analyze data
Dividend Stocks

How Much Do You Need to Invest to Give Up Work and Live Only Off Dividend Income?

Here's an honest assessment of how difficult it is to achieve "quit-your-job" levels of passive income.

Read more »

Man holding magnifying glass over a document
Stocks for Beginners

TFSA Investors: Make Your Recession Watchlist Now!

These long-term stocks offer immense value for TFSA investors looking to create immense returns coming out of a recession.

Read more »

Profit dial turned up to maximum
Dividend Stocks

2 TSX Dividend Stocks With Seriously Huge Payouts

The TSX telecom sector has some great high-yielding companies up for grabs.

Read more »

TFSA and coins
Dividend Stocks

Dividend Stocks With Yields TFSA Investors Should Lock In Now!

Are you looking to build a passive-income stream? Here are two top dividend stocks to load up on in your…

Read more »

Gas pipelines
Energy Stocks

Better Energy Stock to Buy: Suncor or Canadian Natural Resources?

Suncor and Canadian Natural Resources are off their recent highs. Are these stocks now good to buy?

Read more »

tsx today
Stocks for Beginners

TSX Today: What to Watch for in Stocks on Thursday, March 23

TSX stocks may remain volatile, as investors continue to assess how the high interest rate environment could affect the economy…

Read more »

A plant grows from coins.
Dividend Stocks

2 Young TSX Stocks You’ll Be Glad You Bought in 10 Years

Youth means nothing when you plan to hold strong companies long term. These two TSX stocks should therefore be first…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

Is it a Trap? 3 TSX Stocks With Ultra-High Dividend Yields 

Who doesn’t love dividends? But the high-interest rate environment makes ultra-high dividends unsustainable. Are these stocks a value trap?

Read more »