Growth stocks are becoming a bit trendy once more. Economies around the world have been improving, with inflation stabilizing and the potential for fewer rate hikes leaving more cash in people’s pockets.
That cash can certainly be put to good use for investors considering investing in growth stocks. But of the batch, these are the two I would consider on the TSX today.
Shopify stock
Shopify (TSX:SHOP) is the first growth stock to consider on the TSX today, even though it’s been rising for a while. The company continues to surge, as investors align with pretty much every move management has made — at least in the last few months.
It came down to cuts in the workforce, combined with the divestment of its logistics business. Since then, the company has seen a rise in shareholders once again, with major investment firms also choosing to back the company.
Earnings have certainly helped, with the company increasing its gross merchandise volume (GMV) 15% year over year to $49.6 billion. Total revenue climbed 25% to $1.5 billion, with subscription solutions revenue also up 11% to $382 million. The company remains conservative about the end of the year, but analysts believe this only leads up to beating out estimates once again.
Meanwhile, any news seems to cause Shopify stock to rise. Most recently, shares jumped after Shopify stock announced it would put a cost on the length of meetings. As of writing, shares of the company are up 118% in the last year and 49% in the last three months alone.
Lightspeed stock
Another company that should then see some improvement should be Lightspeed Commerce (TSX:LSPD). However, the great e-commerce and point-of-sale company hasn’t had the rally we’ve seen with Shopify stock. Still, it’s, therefore, one of the growth stocks on the TSX today due for a boost.
This comes from the company also making moves such as cutting its workforce, refocusing on its roots of point-of-sale systems, and putting its acquisitions to work. Now, it’s had earnings after earnings come out and beat estimates.
During its last quarter, which was both the fourth quarter and full fiscal 2023 year, total revenue grew 33% over the year before, with total quarterly revenue up 26% year over year. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) still came in at a loss, but “significantly better than previously-established outlook.”
Lightspeed stock now looks to break even by fiscal 2024 and launched its unified point-of-sale and payments system initiative to bring in more clients. With gross payments volume already increasing 70% year over year, it’s unclear how it could get better! Oh wait, it’s because the company has a new focus on increasing enterprise-level clients.
Shares of Lightspeed stock are up 28% in the last three months alone as of writing. So, if you’re looking for growth stocks, this could be a train to hop on.
