Despite starting 2023 on a strong note, the roller coaster ride of the Canadian stock market resumed in March, as macroeconomic uncertainties and recent banking sector turmoil have taken a big toll on investors’ sentiments. These are the key reasons why the TSX Composite Index currently trades with minor 1.6% year-to-date gains, even after rallying by more than 7% in the first month of the year.
While it’s true that these economic concerns might increase market volatility in the short term, no one can deny the fact that every bear market eventually turns into a bull market. Given that, the opportunity for long-term investors to buy some quality stocks at a bargain is still open. Let’s quickly highlight two of the best Canadian growth stocks you can buy now to hold forever.
My first Canadian growth stock recommendation for March 2023
If you observe carefully, more businesses than ever have started building or improving their digital presence in the last few years, especially after the global pandemic phase. This digital trend is also likely to massively accelerate the demand for innovative cybersecurity solutions that can help businesses remain safe and secure from cybercriminals.
That’s why my first Canadian growth stock recommendation is Magnet Forensics (TSX:MAGT), which primarily focuses on providing innovative software solutions to public and private organizations across the world to help them remain secure from online threats. Its digital investigation software is capable of acquiring, analyzing, and managing evidence from various digital sources.
MAGT stock rose 13% in 2022, despite the broader market weakness. In 2023 so far, it has gained 19.5% to trade at $44.41 per share and has a market cap of $544.8 million. Given its consistently growing customer base and the strong long-term growth potential of the cybersecurity software segment, you can expect Magnet’s share prices to stage a spectacular rally.
My second growth stock recommendation
Nuvei (TSX:NVEI) could be another fundamentally strong growth stock to consider adding to your portfolio now to hold for years to come. After tanking by 58% in 2022, NVEI stock has rallied by nearly 63% this year so far to trade at $55.93 per share and has a market cap of $7.8 billion.
Last year, Nuvei’s total revenue soared 16.4% YoY (year over year) to US$843.4 million with the help of a solid 34% increase in its total volume, despite currency headwinds. As a result, the payment technology firm reported $1.86 per share in adjusted earnings for the year, up 10.1% on a YoY basis.
To give another push to its financial growth and grab more opportunities in the payment tech space, Nuvei is actively expanding its global presence. Besides its continued business growth efforts in Europe, the Middle East, Africa, and North America, it recently launched its full suite of payments solutions in Australia on March 6. While NVEI’s share prices have already seen a massive rally this year so far, I still find it worth considering for the long term based on its business growth outlook.
