A Bull Market Is Coming: 3 Growth Stocks That Could Thrive

These growth stocks have shown some huge promise in the last year and even in the last week! They belong on your bull market watchlist.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published November 2, 2023 7:00 pm EDT

I know right now, it seems all but impossible for there to be a bull market in the future. The thing is, however, that after a bear market, after a recession, after any downturn in the market comes a bull market — one that could explode and offer huge opportunities for investors.

So, when that bull market comes, you’re going to want to be ready with three growth stocks on hand. These three growth stocks are likely to be the first to pop.

Shopify

Shopify (TSX: SHOP) has already been popping over the last year. The company’s share price dropped, along with other tech stocks, with there being many issues the company has to cover. Since then, Shopify stock has brought in cash through the sales of assets, along with layoffs. And now, it’s looking to focus back on e-commerce.

That’s right on time, considering that the biggest e-commerce event of the year is around the corner. Black Friday to Cyber Monday has historically been enormous for the stock. So, even before a bull market is on the way, Shopify stock could see shares grow even further.

For now, Shopify stock still surged 21% after reporting earnings this week. This alone shows that investors are still willing to invest, and it could be that we’re on the verge of a bull market. Net income soared to US$718 million in the third quarter, as the company saw the benefits of its strategic moves. That’s compared to a loss the year before. So, certainly add this to your list of growth stocks to watch.

Lightspeed

Another tech stock that saw a major increase in share price this week was Lightspeed Commerce (TSX: LSPD). Shares of Lightspeed stock jumped 17% in early trading, as the tech stock saw revenue increase by 25% compared to the year before.

This had more to do with just cuts, however. Lightspeed stock made huge acquisitions back during the pandemic that are now fully up and running. These acquisitions have brought the e-commerce company to a whole new level. Yet those costs were adding up over the last few years.

Now, there is a smaller loss of US$42.5 million compared to US$79.9 million the year before. That’s almost half the amount. Meanwhile, revenue rose to US$230.3 million compared to US$183.7 million at the same time last year. Now, it expects to achieve revenue between US$232 million and US$237 million for the third quarter.

Furthermore, Lightspeed stock expects to achieve revenue for fiscal 2024 between US$890 million and US$905 million. That would mean it would achieve over $1 billion in revenue in Canadian dollars! An enormous feat for this among growth stocks.

Topicus

One of the best opportunities might still be Topicus.com (TSXV: TOI) among growth stocks. And that’s not just for more growth but sustained growth. Topicus stock is a spinoff of Constellation Software, which has a long history of growth through acquiring software companies. Topicus stock is the same, but it’s active in Europe.

Now, Topicus stock has already exploded in the last year, with shares up 32% in the last year alone. What’s more, earnings are due out after market close. Shares are already starting to climb, as investors look forward to more growth from this new company.

Basically, by buying Topicus stock, it would be like getting in on the ground floor of Constellation stock — a company that’s steadily risen in the last decade or so. So, this is certainly another growth stock to consider ahead of a bull market.