Canadian investors had lots to cheer about as 2023 came to an end. The S&P/TSX Composite Index surged 10% in the last two months of the year. The index has stalled in the first few weeks of 2024, but there are plenty of reasons to be bullish about another positive year in the stock market.
After a disappointing performance in 2022, Canadian investors were able to breathe a sigh of relief in 2023. Growth stocks, particularly in the tech sector, led the way for the Canadian stock market’s rebound last year.
Investing in stocks in 2024
Even with the strong end to the year, the Canadian stock market continues to trade below all-time highs from early 2022. For investors with long-term time horizons, there’s value to be had here. And with the stock market beginning to show signs of strength, now could be an opportunistic time to put your money to work.
With that in mind, I’ve reviewed two top growth stocks on the TSX that are both proven long-term winners. The two picks have rich histories of delivering market-beaten returns, and the future looks as bright as ever.
If you’ve got some cash to spare, these are two companies that should be on your watch list right now.
Growth stock #1: goeasy
Investors should act fast if they’re hoping to pick up shares of goeasy (TSX:GSY) at a discount. This is not a growth stock that goes on sale often. Shares are currently down close to 25% from all-time highs. That’s even with a 35% run over the past six months.
The high interest rate environment has understandably slowed demand for the consumer-facing financial service provider. But with potential rate cuts around the corner, now could be an excellent time to start a position in this under-the-radar growth stock.
Despite the recent pullback, shares are still up a market-crushing 325% over the past five years. In comparison, the broader Canadian stock market has returned less than 50%, excluding dividends.
Growth investors looking for a bargain don’t need to look any further than goeasy.
Growth stock #2: Constellation Software
Constellation Software (TSX:CSU) is a much different company than goeasy. For starters, goeasy’s $2 billion market cap pales in comparison to the tech company’s near-$80 market cap. In addition to being a Canadian tech giant, Constellation Software is also one of the largest companies on the TSX.
What makes this tech stock such an incredible story is the company’s ability to continue delivering market-beating gains, despite its massive market cap size. Shares are nearing an incredible return of 300% over the past five years.
At a price of more than $3,000 a share, Canadian investors will need to pay up to own shares of Constellation Software. But what shareholders get in return is one of the most dependable market-beating stocks around.
This is the perfect pick for an investor who’s looking for market-beating growth potential but without the extreme levels of volatility. You know what you’re going to get with this tech stalwart. It’s a steep price tag to pay but worth every penny.
