2 Top Growth Stocks to Buy Right Now and Hold for the Long Term

With the Canadian stock market on the cusp of a rebound, here are two stocks that should be on your radar.

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The Canadian stock market closed out 2023 with authority. The S&P/TSX Composite Index surged 10% in the last two months of the year. Even so, the index continues to trade below all-time highs from 2022. This means that there are deals to be had by opportunistic investors. 

Buying growth stocks in 2024

If you’re looking for growth, the tech sector is a good place to start. Volatility may be higher in comparison to other verticals, but that’s one of the prices to pay for the chance to earn market-beating returns. 

Much to the delight of growth investors, the tech sector as a whole rebounded incredibly well last year. But even with the strong push in 2023, many tech stocks continue to trade below all-time highs from late 2021. 

As long as you can handle the short-term volatility, long-term investors have plenty of deals to choose from on the TSX. There’s no shortage of growth stocks trading at must-buy prices right now.

With that in mind, I’ve reviewed two top growth companies that took a beating in 2022. Both stocks have been gaining steam as of late but still offer lots of long-term upside at these prices. 

Growth stock #1: Shopify

It’s hard to believe that even with shares up more than 100% last year, Shopify (TSX:SHOP) is still down 50% from all-time highs. That just goes to show how much growth was pulled forward in 2020 and 2021 for not only Shopify but many tech stocks.

Despite the extreme levels of volatility that Shopify shareholders have endured over the past several years, the business itself continues to hold a competitive position in the commerce space. And that’s perhaps one reason why the business is up a market-crushing 400% over the past five years. 

The pandemic certainly caused short-term headwinds, but there’s no denying the long-term growth opportunity for Shopify.

With all of the positive momentum in the Canadian stock market right now, Shopify may not be trading at a discount for much longer. I’d act fast if you’re looking to load up at these bargain prices.

Growth stock #2: Brookfield Renewable Partners

The renewable energy space is another area of the stock market that’s ripe with opportunities. Leaders across the sector have seen share prices on the decline since early 2021.

At a market cap of more than $20 billion, Brookfield Renewable Partners (TSX:BEP.UN) is not only a Canadian but a global renewable energy leader. Shareholders of this energy stock gain instant exposure to the growing renewable energy space.

Excluding dividends, shares of Brookfield Renewable Partners are down about 40% since the beginning of 2021. Even so, energy stock’s return of more than 60% has largely outperformed the market’s return over the past five years.

Market-beating returns aside, Brookfield Renewable Partners can also be a serious passive-income generator. With today’s discounted price, the dividend yield has shot up to above 5%. 

There aren’t many 5%-yielding dividend stocks on the TSX with a market-beating track record like that of Brookfield Renewable Partners.

If you’re bullish on the rise of renewable energy, now’s the time to invest.

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 Nicholas Dobroruka has positions in Brookfield Renewable Partners and Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

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