A Bull Market Is Coming: 2 Spectacular Growth Stocks to Buy Now and Hold Forever

With a potential bull market around the corner, now is the time to load up on top TSX stocks.

| More on:
A bull outlined against a field

Image source: Getty Images.

The Canadian stock market is coming off another strong week and is now nearing positive territory over the past year. The S&P/TSX Composite Index is up more than 5% in 2023 and close to 10% over the past year.

Ahead of a potential new bull market, I’d recommend investors make sure that their watch lists are up to date. Despite the market’s hot start to the year, there are still deals to be had. But if the market continues to perform as it has over the past month, these deals may not be around for much longer.

With that, I’ve reviewed two Canadian companies that any long-term investor would be wise considering picking up shares of today. Both TSX stocks have a long history of delivering market-beating returns. And I wouldn’t count on that changing anytime soon.

TSX stock #1: goeasy

goeasy (TSX:GSY) has quietly been amongst the top-performing stocks on the TSX over the past decade. Even with the massive returns in recent years, it’s still only valued at a market cap of less than $2 billion. That could be one reason why the company receives such little fanfare. 

Shares have taken a recent hit, providing Canadian investors with a rare chance to get in at a discounted price. The stock is down close to 20% over the past year and is trading more than 50% below all-time highs that were set in late 2021.

Even with the recent slide, though, long-term investors are still sitting on loads of market-beating gains. The growth stock has returned just shy of 150% over the past five years. Going back a decade, the growth stock has been an eight-bagger.

One of the reasons for the stock’s poor performance over the past year and a half has been due to the spike in interest rates. As a consumer-facing financial services provider, demand for goeasy’s services unsurprisingly began slowing, as interest rates began spiking.

These interest rates won’t last at these levels forever, though. We’re already starting to see interest rate hikes put on hold and inflation cool.

Today could be an incredibly opportunistic time to start a position in this top growth stock.

TSX stock #2: Constellation Software

It’s not difficult to find a deal in the tech sector right now, but Constellation Software (TSX:CSU) is not one of them. 

The $50 billion tech company is one of the few in the sector trading near all-time highs. Not only that, shares are priced at more than $2,500, making the tech stock a pricey buy today.

There’s a reason why Constellation Software is worth paying a premium for. Shares haven’t gone on sale often over the past decade, and the tech stock has been as consistent of a market beater as you can find on the TSX.

Growth has begun slowing for the tech stock, as the business continues to mature, but shares are still up a whopping nearly 200% over the past five years. 

There are certainly cheaper alternatives on the TSX right now. But if you’re willing to pay up to own a dependable market-beating growth stock, this would be the company to splurge on.

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 Nicholas Dobroruka has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

More on Tech Stocks

Technology, internet and networking, security concept
Tech Stocks

Top Cybersecurity Stocks for June 2023

Canadian investors should look to snatch up top cybersecurity stocks like Absolute Software Corp. (TSX:ABST) to start the month of…

Read more »

online shopping
Tech Stocks

Shopify Stock Rose 22% Last Month: Is it Still a Buy in June 2023?

Shopify (TSX:SHOP) stock rose 22% in the last month but is down from 52-week highs. So, is it time to…

Read more »

A data center engineer works on a laptop at a server farm.
Tech Stocks

Psst … 2 Tech Stocks I’d Buy Before Shopify

Shopify (TSX:SHOP) stock is great -- don't get me wrong. But these two tech stocks are great too, with more…

Read more »

Technology, internet and networking, security concept
Tech Stocks

1 Top Canadian Cybersecurity Firm on the Frontline Against Cyber Threats

Here’s the best Canadian cybersecurity stock you can buy now to benefit from the expected significant surge in demand for…

Read more »

Credit card, online shopping, retail
Tech Stocks

Should You Buy Lightspeed Stock After Its Q4 Earnings?

Despite its volatility, I expect Lightspeed to outperform in the long run due to its healthy growth prospects and cheaper…

Read more »

Shopping and e-commerce
Tech Stocks

Shopify Stock: Is $100 the Next Stop?

Shopify (TSX:SHOP) stock may be headed to the $100 level over the longer term if things fall into the right…

Read more »

Young woman sat at laptop by a window
Tech Stocks

Open Text’s Cloud Kingdom: A SaaS Stock for the Long Haul?

Here's why Open Text (TSX:OTEX) could indeed be a software-as-a-service stock that long-term investors may want to consider right now.

Read more »

clock time
Tech Stocks

Is Now the Right Time to Buy Shopify Stock?

Amid another dip, Shopify stock might be worth buying right now for investors who missed the post-earnings surge.

Read more »