My 2 Favourite TSX Growth Stocks Right Now

Are you looking for TSX growth stocks to add to your portfolio? Here are my top favourite picks right now!

| More on:
edit Balloon shaped as a heart

Image source: Getty Images.

Growth stocks can be very interesting companies to hold in a portfolio, because of the potential return on investment. If we look at some of the greatest growth stocks in history, we’d see that some investors have been able to generate life-changing amounts of wealth with as little as $10,000. However, to pull that off, investors need to find the right stocks and hold them long enough for those growth stories to play out. In this article, I’ll discuss my two favourite TSX growth stocks right now.

A recent addition to my portfolio

Constellation Software (TSX:CSU) is a stock that I have been following and writing about for years. However, it wasn’t until the end of last year that I finally took the plunge and added shares of this company into my portfolio. For those that are unfamiliar, Constellation Software acquires vertical market software (VMS) businesses.

For much of its history, the company has focused on small- and medium-sized businesses. However, in 2021, Constellation Software announced that it would finally start targeting large VMS businesses for acquisition. This could open up new avenues for growth for Constellation Software.

Despite those large changes to the company’s operations, one thing has stayed constant — that is, Mark Leonard, Constellation Software’s founder, continues to lead the company as its president. Mark Leonard is widely recognized as one of the greatest executives of his generation.

In order to support that claim, many investors simply point to the growth that Constellation Software stock has generated under his leadership. Since its initial public offering in 2006, this stock has gained about 14,300%. If you’re looking for a stock that has turned an initial investment of $10,000 into $1 million, then look no further. With a gain of about 26% over the past year, Constellation Software stock looks on track to continue producing market-beating gains over the coming years.

One of my favourite Canadian companies

We transition from a relatively new addition to my portfolio to a stock that I’ve been holding for years. Shopify (TSX:SHOP) has long been a cornerstone holding in my portfolio. This is one of the largest e-commerce companies in the world. Shopify’s amazing platform supports everyone from the first-time entrepreneur to some of the largest enterprises in the world. For example, in 2021, Netflix announced it would be using Shopify to power its official merchandise store.

From 2015 to 2021, Shopify stock was one of the best performers on the TSX. However, the past two years haven’t been very great for this company. At one point, Shopify stock had fallen more than 80% from its all-time high. Since hitting its lowest point during that drop, Shopify stock has gained about 80%. However, the stock still sits about 70% lower than where it was in November 2021.

I’m confident that this stock could continue to grow at a reasonable rate over the coming years. One reason for that line of thinking is that Shopify’s revenue continues to grow. In the fourth quarter of 2022, Shopify reported a 26% year-over-year increase in its revenue. As consumers continue to shift towards online shopping, Shopify’s business should continue to thrive. As long as that’s the case, I will continue to be a very happy shareholder in this company.

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 and Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Constellation Software and Netflix. The Motley Fool has a disclosure policy.

More on Tech Stocks

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 »

Tech Stocks

Is BlackBerry Stock a Buy for June 2023?

Given its multiple growth drivers, I expect the uptrend in BlackBerry’s stock price to continue.

Read more »

Index funds
Tech Stocks

1 Canadian Tech Stock I’d Buy Before Shopify Stock

Shopify stock is still a good option, but this other tech stock could be even better, especially as it's up…

Read more »

Redwood trees stretch up to the sunlight.
Tech Stocks

3 Safer Stocks I Expect to Keep Growing for Years

Given their growth prospects, I expect the following three stocks to enjoy long-term growth, thus making them attractive buys.

Read more »

Businessman holding AI cloud
Tech Stocks

AI Hype Is Picking Up Steam: Should You Buy the Bounce?

AI stocks rallied when NVIDIA (NASDAQ:NVDA) beat earnings. Could Canadian AI stock Kinaxis Inc (TSX:KXS) be next?

Read more »