3 Top Growth Stocks in Canada for May 2023

Given their healthy growth prospects and discounted stock prices, I am bullish on these three growth stocks.

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On Wednesday, the Federal Reserve of the United States raised its benchmark interest rates by 25 basis points to 5%–5.25%. It was the tenth rate hike by the central bank in over 14 months, thus pushing interest rates to a 16-year high. The increase in interest rates has reignited the contagion risk in the United States banking sector, thus dragging the equity market down.

Despite the uncertainty, I believe investors can go long on these three TSX stocks, given their high-growth prospects.

WELL Health Technologies

WELL Health Technologies (TSX:WELL) would be my first pick, given its solid financials and healthy outlook amid the growing adoption of telehealthcare services. With the development of innovative products and increased internet penetration, the popularity of telehealthcare services is growing.

In the first quarter of 2023, WELL Health had around 1.4 million patient interactions, representing 27% growth from the previous year. It has witnessed healthy growth across its three segments. Organic growth was a substantial contributor to the company’s overall growth. Meanwhile, it was the company’s fifth consecutive quarter of double-digit organic growth. Besides, the company continues to expand its presence in Canada, the United States, and Germany to drive growth.

Notably, management expects its annual revenue to be in the range of $665–$685 million, with the midpoint of the guidance representing 18.6% growth from the previous year. Also, its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) could grow by 10%. Despite its healthy growth prospects, the company trades at an attractive NTM (next 12 months) price-to-earnings multiple of 19.8, making it an attractive buy.


Nuvei (TSX:NVEI) facilitates businesses’ acceptance of various APMs (alternative payment methods) across sectors, thus driving their growth. The digital payments solutions provider offers services in over 200 markets, supporting 150 currencies and 600 APMs. Despite declining consumer spending amid inflationary pressure, the company continues to drive its financials, thanks to the growing popularity of digital transactions amid e-commerce growth.

Further, the company acquired Paya Holdings, which offers commerce services to healthcare, government, utilities, and non-profit sectors in the United States, for $1.3 billion. The acquisition has strengthened its position in the United States. Besides, it is also expanding its product offerings in Australia. Given its growth prospects, management expects its 2023 revenue and adjusted EBITDA to grow around 47.5% and 32.7%, respectively. Further, Nuvei expects revenue to increase by over 20% annually for the next few years.

So, given its strong growth prospects and an attractive NTM price-to-earnings of 18.8, I believe Nuvei would be a perfect addition to your portfolio.


Another attractive growth stock to have in your portfolio would be Shopify (TSX:SHOP), which reported solid first-quarter performance yesterday. Its revenue grew by 25.1% driven by revenue growth from its merchant and subscription solutions. Besides, the company’s gross merchandise volume rose by 15%. Further, net income came in at US$68 million compared to a net loss of US$1.5 billion in the previous year’s quarter.

With the intent of focusing on its core business, Shopify has announced it is offloading its logistics business. It also slashed 20% of its workforce, marking a second major downsizing after a 10% cut in July last year. The company’s strong first-quarter earnings and defensive approach in an uncertain environment appear to have increased investors’ optimism, thus driving its stock higher.

On Thursday, Shopify’s stock price rose by 23%. Despite the surge, it still trades around 65% lower than its November 2021 highs, thus offering an excellent buying opportunity for long-term investors.

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 Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nuvei and Shopify. The Motley Fool has a disclosure policy.

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