September did not end well for Canadian bulls. The S&P/TSX Composite Index managed to drop just shy of 5% last month. Unfortunately, Canadian investors have become all too familiar with these types of drops this year. Despite having accumulated three 5% surges in 2023 now, the Canadian stock market as a whole is just about flat on the year.
I wouldn’t blame short-term investors for being hesitant to be a buyer in today’s volatile market. But for those with long-term time horizons, there are plenty of discounted growth stocks on the TSX to take advantage of right now.
I’ve reviewed two Canadian stocks that growth investors will want to have on their radar in October. Both picks are very different from one another, making it a great duo of companies to add to your portfolio this month.
goeasy
goeasy (TSX:GSY) is not exactly a household name amongst Canadian growth investors. But when looking at its returns over the past decade, the financial services provider is not rivalled by many.
Shares are up close to 600% over the past decade and more than 100% over the past five years. Growth has understandably slowed in recent years, but the stock has also pulled back significantly from its all-time highs set in late 2021. Alongside many other growth stocks, shares of goeasy have plummeted after a massive run-up following the COVID-19 market crash.
High interest rates are another reason why goeasy’s share price has struggled as of late. But with the high rates as a temporary headwind only, it’s another reason for long-term investors to get excited about today’s discounted price.
Down 50% from all-time highs, we might not see another buying opportunity like this for a while.
Growth stock #2: Shopify
On the other end of the fandom spectrum is the Canadian tech stock Shopify (TSX:SHOP). The tech giant is not long removed from being the largest company on the TSX.
At one point in late 2022, shares were down a staggering 80% from all-time highs set in 2021. Today, shares are up 50% year to date but continue to trade more than 60% below all-time highs.
Like many other high-growth tech stocks, it’s hard to argue that Shopify’s stock didn’t get too far ahead of itself in 2021. During the quick turnaround that began in mid-2020, it seemed as if investors couldn’t get enough of the high-flying, unprofitable tech companies. As a result, witnessing the downturn across the tech sector in 2022 wasn’t all that surprising.
Putting all the recent volatility aside, Shopify remains a top player in the global e-commerce space, which is loaded with long-term growth opportunities.
If you can stomach the volatility, this is not a company that is showing many signs of slowing down.
Foolish bottom line
I certainly won’t try to convince anyone that it’s easy to invest during today’s volatile market conditions. However, it’s during these unbearable times that many of the can’t-miss buying opportunities present themselves.
What makes pulling the trigger easier for me is to put the share price aside for a second. While that may be difficult, it’s important to take the time to truly evaluate the company’s long-term growth potential. If you’re bullish on the company’s ability to continue growing for many years to come, a 50% discount on the stock price should make you give the company a serious look.
