2 TSX Growth Stocks You Should Buy in Bulk During the Next Market Slip

Here are two of the best TSX growth stocks you may want to buy if the stock market falls again.

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Have you ever wondered how people manage to make a fortune by investing in stocks? If you ask successful, experienced investors, most would say that you need to be consistent and maintain a long-term approach.

Another key factor that plays an important role in deciding your chances of winning in the stock market is how you react to market sell-offs. While the stock market sell-offs may look risky at first glance, they open opportunities to buy some fundamentally strong growth stocks at huge discounts. Buying quality growth stocks when the market is down can help you get outstanding returns on investments if you hold them for years to come.

In this article, I’ll highlight two of the best TSX growth stocks you can buy in bulk if the market slips again.

Lightspeed stock

Lightspeed Commerce (TSX:LSPD) is a Montréal-headquartered software company that mainly focuses on providing a one-stop commerce platform to merchants globally. After rallying by 16% in the first half of 2023, LSPD has been trading on a bearish note for the last three months due mainly to the broader market sell-off. As a result, this top TSX growth stock currently trades with 2.3% year-to-date losses at $18.90 and a market cap of $2.9 billion.

The ongoing strength in Lightspeed’s financial growth trends is among the key factors that make its stock look undervalued after recent declines. Despite high inflationary pressures and other macroeconomic challenges, the company reported a 33.2% YoY (year-over-year) increase in its fiscal year 2023 (ended in March) revenue. The company posted US$0.17 per share in adjusted earnings in fiscal year 2023, reflecting an improvement over its annual loss of US$0.37 per share in the previous fiscal year.

After reporting strong June 2023 quarter results, Lightspeed has now been beating analysts’ revenue and earnings estimates for five consecutive quarters. As the macroeconomic scenario improves in the coming years after the ongoing round of interest rate hikes comes to an end, you can expect LSPD’s financial growth trends to improve further.

OpenText stock

OpenText (TSX:OTEX) is another beaten-down TSX growth stock you can add to your portfolio now. Although it’s outperforming the broader market by a wide margin with its 14.3% year-to-date gains, the stock has seen about a 16% decline in the last 30 days, making it look cheap to buy on the dip. The company currently has a market cap of $12.4 billion as the stock trades at $45.86 per share.

Despite the ongoing economic slowdown, the demand for OpenText’s wide range of information management software solutions has remained steady. This is one of the key reasons why, in its fiscal year 2023 (ended in June), the company’s revenue grew positively by more than 28% YoY to a record US$4.5 billion. More importantly, nearly 81% of its total revenue last fiscal year was annually recurring.

As OpenText focuses on boosting organic growth through customer success and innovation, its earnings growth is expected to significantly improve in its fiscal year 2024. Given its strong fundamentals, buying this amazing TSX growth stock on a dip could pay off well in the long run.

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.

The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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