My 3 Favourite TSX Growth Stocks for November 2023

Are you looking for growth stocks to buy before the end of the month? Here are my three top picks!

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If you’re hoping to generate massive amounts of wealth, then you should be focusing on growth stocks. These are companies that either operate in industries that have massive growth potential or already lead their respective industries and can continue scaling their business. Growth stocks can be difficult to assess because of the many hurdles that a company may face. However, in my opinion, there are a few clearcut companies that should be in your portfolio.

In this article, I’ll discuss three of my favourite TSX growth stocks. If you have some additional cash lying around at the end of this month, you should heavily consider buying these stocks.

One of the best stocks in Canada

When it comes to Canadian growth stocks, Constellation Software (TSX:CSU) is a name that should come to mind. This is a tech conglomerate; it acquires vertical market software (VMS) businesses of all sizes. Upon acquisition, Constellation Software provides businesses with the resources necessary to turn them into exceptional business units. Constellation Software’s strategy has proven to be successful since its founding in the 1990s — so much so that the company has needed to watch out for copycat companies.

One reason why some companies may want to copy Constellation Software’s strategy can be revealed by looking at its stock chart. Since its initial public offering in 2006, Constellation Software stock has gained more than 17,250%! Over the past year alone, this stock has gained over 50%. That suggests that Constellation Software may be nowhere close to ending its outstanding run on the markets.

One for the future

Shopify (TSX:SHOP) is a stock that I’ve been very bullish on for the past few years, and I’ll continue to be as long as my investment thesis holds. Essentially, investors should buy shares in this company if they believe in two things. First, that the global e-commerce industry can continue to grow. I believe that’s an easy thing to assume as younger generations are becoming increasingly more accustomed to online shopping.

Second, investors should believe that Shopify can maintain — or, in the best-case scenario, grow — its market share. I believe Shopify can easily do that, given its large number of enterprise customers. Most notably, Netflix has started using Shopify to operate its online merchandise store in recent years. Over the past year, Shopify stock has gained more than 100%. I believe this stock still has a lot of room to grow.

An underappreciated company

Finally, investors should consider adding Alimentation Couche-Tard (TSX:ATD) to their portfolio. For those who aren’t familiar, this company operates convenience stores under several banners. This includes its namesake Alimentation Couche-Tard and Mac’s locations, but also On the Run, Circle K, Daisy Mart, and many more. All considered, Alimentation Couche-Tard operates more than 14,000 locations across 25 countries and territories.

Over the past year, Alimentation Couche-Tard stock has gained 30%. To put that performance into perspective, the TSX lost 0.57% over the same period. It’s clear that Alimentation Couche-Tard has the potential to massively outperform the broader market. Investors should stop ignoring this 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 Jed Lloren has positions in Constellation Software and Shopify. The Motley Fool has positions in and recommends Alimentation Couche-Tard and Shopify. The Motley Fool recommends Constellation Software and Netflix. The Motley Fool has a disclosure policy.

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