The unbearable volatility investors experienced in 2022 has continued right into 2023. After a strong start to the year, the S&P/TSX Composite Index managed to surge more than 5% in January. However, that has been followed by two declining months, and the index is now just about flat on the year.
While the Canadian stock market as a whole may not be that far off from all-time highs, many individual TSX stocks are. Growth stocks, particularly in the tech sector, were hit hard last year. As a result, it’s not hard to find a beaten-down growth stock on the TSX today.
With volatility not showing much sign of slowing down, it may be nerve-wracking to be investing in high-growth tech stocks today. And for short-term investors, I can completely understand why. But for those with long-term time horizons, now could be an incredibly opportunistic time to be putting cash to work in the stock market.
I’ve put together a list of three top growth stocks that are trading at bargain prices. If you’ve got some cash readily available and are willing to be patient, these three companies are worth a look.
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Lightspeed Commerce
Not many TSX stocks have had as bad of a past year and a half as Lightspeed Commerce (TSX: LSPD). The Montreal-based tech company has seen its stock price drop close to 90% from its all-time highs set in 2021. Today, shares are trading close to the same price that the stock went public at in early 2019.
There’s been no shortage of volatility for Lightspeed as a publicly trading company. And with growth still largely the main focus for management, I wouldn’t bank on the volatility slowing down just yet.
The risk of owning a high-growth company like Lightspeed has been demonstrated over the past year and a half. The potential reward is multi-bagger returns.
Canadian investors looking to add some serious growth potential to their portfolios should have this discounted tech stock on their watch lists.
Docebo
Docebo (TSX: DCBO) is another relatively new publicly traded tech company, also having joined the TSX in 2019.
Shares are down from all-time highs but not nearly as much as Lightspeed. The tech stock is down about 50% from all-time highs set in late 2021. But year to date, shares are already up more than 10%, well on their way to a positive year in 2023.
Growth got ahead of Docebo during the early days of the pandemic, which was then followed by an unsurprising pullback. With the stock’s valuation back to reasonable levels, now would be a wise time for long-term investors to be loading up.
WELL Health Technologies
Speaking of growth stocks that surged in the early days of the pandemic, WELL Health Technologies (TSX: WELL) managed to end 2020 up more than 400%. Since then, shares are down about 40%, and that’s even with a strong start to the year.
Shares of WELL Health have already soared more than 50% since the beginning of the year. It’s been a gradual rise dating back to late December for the telehealth company. Perhaps the selling was overdone in 2021 and 2022, and investors are now realizing that there’s some serious growth potential here.
If you’re bullish on the long-term rise of digital health services, this growth stock belongs in your portfolio.
