Most investors would agree that 2023 has so far been full of volatility. Fortunately, more seasoned investors recognize the unique opportunities that come with a volatile market, particularly for growth stock investors.
Here are two stocks for those growth stock investors to consider buying in 2023 while that opportunity still exists.
Buying a superb growth stock at a discounted price
One of the most recognizable growth stocks in recent memory is Shopify (TSX:SHOP). The e-commerce platform titan established itself as the go-to option for businesses looking for an online presence.
When the pandemic hit, Shopify stock took off into the stratosphere, as consumers were pushed into a mobile-commerce world, as physical stores remained closed. As stores began to reopen, that sensational rise was met with a decline, as consumers returned to in-person shopping.
As of the time of writing, Shopify is up over its pre-pandemic price point by approximately 20%. More recently, the stock is up an incredible 68% year to date.
And that’s not even the best part.
Earlier this year, Shopify moved to hike the price of some of its services. This was the first such increase in nearly a decade. The company also moved to exit its very costly logistics arm. Both initiatives have been met with positive responses from the market.
The most recent quarterly results also showed strong growth. Shopify posted revenues of $1.5 billion, reflecting an incredible 25% increase over the same period last year. And despite concerns of that price hike impacting subscription revenue, Shopify saw impressive growth there, too.
Specifically, subscriber solutions revenue witnessed an 11% increase over the prior year, coming in at $382 million.
In short, growth stock investors looking for a long-term growth pick will regret not buying into Shopify at current levels.
You can buy everything you can fit in your cart
The volatile market we’re navigating, and the prospect of an impending recession coming either this year or next has consumers on edge. It also doesn’t help that rising interest rates and still-high inflation remain issues.
As a result, many shoppers are trading down some of their purchases to lower-priced retailers, like Dollarama (TSX:DOL). Dollarama is the largest dollar store operator in Canada and operates a growing network of stores in Latin America under the Dollar City brand.
Dollarama is also a stellar long-term option for growth stock investors to consider right now. That’s because dollar stores like Dollarama are incredibly recession resilient. Apart from attracting budget-strapped shoppers, Dollarama’s unique pricing model, which has fixed price points, caters to value-seeking buyers.
To put it another way, it’s not a coincidence that Dollarama’s stock is up over 10% over the trailing 12-month period. Over the same period, Dollarama’s revenues have surged over 15%. And that timeline also dovetails nicely with when interest rates started to rapidly rise.
But will those good times continue?
Overall market volatility continues to fuel inflation-weary shoppers to Dollarama. If conditions improve, there’s no reason to dismiss the potential for further growth. If anything, growth stock investors should consider a small position in Dollarama.
Final thoughts
No stock is without risk, and that includes both Dollarama and Shopify. That being said, both stocks boast significant long-term prospects that should be appealing to growth stock investors.
In my opinion, one or both would do well as part of a larger, well-diversified portfolio.
