The Best TSX Stocks to Invest $5,000 in August 2023

Investors planning to invest in equities can consider shares of high-growth Canadian companies like Shopify and goeasy.

analyze data

Image source: Getty Images

By investing in equities, one can earn the highest returns compared to most other asset classes in the long run. Thus, it is essential to invest in stocks for wealth creation. However, investors must take caution and only invest in shares of companies that are fundamentally strong, have good growth prospects, and operate scalable businesses. 

So if you plan to put $5,000 in stocks in August 2023, here are my top Canadian stocks with the potential to deliver outsized returns. 

Shopify

When it comes to wealth creation, Shopify (TSX:SHOP) stock is a must-have in your portfolio. It has grown as one of the largest internet commerce giants in the world and is poised to benefit from the shift in selling models towards omnichannel platforms. Shopify stock has witnessed a recovery in the recent past. However, it continues to trade at a discounted value from its peak, offering a solid entry point near the current levels. 

Shopify’s strong gross merchandise volumes, ability to expand its merchant base, and increasing number of merchants buying its multiple solutions will enable the company to grow revenue at a solid pace. In addition, innovative products like Shopify POS, Capital, and Markets augur well for long-term growth. 

Docebo

My next pick is also a technology stock. I am bullish on Docebo (TSX:DCBO). It offers a cloud-based platform for enterprise learning. Further, Docebo is also a top stock for investors planning to capitalize on the AI (Artificial intelligence) frenzy. The company’s growing enterprise customer base, solid recurring revenues, and multi-year contracts position it well to deliver substantial growth. 

Moreover, its ability to drive average revenue per user, product expansion, and strategic acquisitions will likely accelerate its growth. The learning suite acquired Edugo.AI to expand its generative AI capability. Further, it will enhance its platform, help automate the creation of e-learning courses, and increase its future competitiveness. Overall, DCBO offers solid growth, while its stock is trading at a significant discount from its peak.

Brookfield Renewable Partners

From tech, let’s move to clean energy stocks. The growing adoption of clean energy is being driven by the focus on energy security and government policies supporting decarbonization. All point to increasing investment in this space, which will create compelling growth opportunities ahead. Brookfield Renewable Partners (TSX:BEP.UN), being a pure-play renewable energy company, is a top bet in the sector. 

The company plans ongoing investments in power technologies and accretive acquisitions to continue growing its large installed capacity and solid development pipeline. Further, because it has a highly contracted power generation portfolio, long-term contracts provide protection against inflation. Low-cost infrastructure shoring up higher gross margins further supports my bullish view.  

goeasy

goeasy (TSX:GSY) is the final stock on this list. The company provides loans to subprime borrowers and has been growing its revenues and earnings at a double-digit rate. Furthermore, goeasy is also a Dividend Aristocrat and famous for consistently increasing its dividend at an attractive rate. 

Looking ahead, goeasy will likely benefit from its high-quality loan originations, which will drive its top line. Meanwhile, stable credit performance and improved operating leverage are likely to cushion its bottom line in the coming quarters and push its stock price higher. goeasy stock has witnessed a pullback due to macro uncertainty. It presents a good entry point for long-term investors to go long on this high-growth 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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Brookfield Renewable Partners and Docebo. The Motley Fool has a disclosure policy.

More on Tech Stocks

man touches brain to show a good idea
Tech Stocks

Nvidia Stock Becomes World’s Most Valuable Company: Buy Now or Beware?

Nvidia (NASDAQ:NVDA) stock is now the world's highest valued company, with a market cap of US$3.34 trillion. So, is the…

Read more »

Dice engraved with the words buy and sell
Tech Stocks

Is Lightspeed Stock a Buy, Sell, or Hold?

Lightspeed (TSX:LSPD) stock was supposed to surge after Dax Dasilva's return, yet it's still stagnating. So, what should investors do…

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

1 of the Best Canadian AI Stocks (With Dividends) to Buy Now

OpenText is an AI stock that trades at a significant discount to consensus price target estimates in June 2024.

Read more »

online shopping
Tech Stocks

3 Reasons to Buy Shopify Stock Right Now

Improving earnings quality, sustained cash flow growth, and another reason support a buy-the-dip thesis on Shopify (TSX:SHOP) stock today

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Tech Stocks

2 Canadian Growth Stocks I’d Stash in a TFSA for the Long Run

Here's why Constellation Software (TSX:CSU) and Shopify (TSX:SHOP) are two top Canadian stocks long-term investors should consider.

Read more »

Wireless technology
Tech Stocks

Predictions for the Top Canadian Tech Stocks in June 2024

Whether it's the growth of artificial intelligence or e-commerce, these three tech stocks offer massive growth in June and beyond.

Read more »

Golden crown on a red velvet background
Dividend Stocks

These 5 Stocks Have Unstoppable Dividend Growth

These five stocks can form a diversified stock portfolio of dividend aristocrats from the TSX.

Read more »

Online shopping
Tech Stocks

Up 42% from 52-Week Lows, Is Shopify Stock Still a Buy?

Shopify (TSX:SHOP) stock looks like one of Canada's best growth stocks. And right now, it looks like it's on sale,…

Read more »