Got $5,000? These Are 2 of the Best Growth Stocks to Buy Right Now

Growth investors should have these two tech stocks high up on their watch lists.

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The market’s strong return in 2023 allowed growth investors to breathe a sigh of relief. After a disappointing performance in 2022, growth stocks across the TSX came roaring back last year. Even so, there’s still no shortage of growth companies trading at bargain prices today.

Investing in growth stocks today

After a strong push last year, it’s understandable to question whether now is the right time to be investing in growth stocks. In the short term, the market could very well be hit with a pullback at some point soon. But if you’re planning on holding your position for five-plus years, is there a point in trying to time when the next pullback will occur?

Having time on your side allows you to be patient and not need to worry about timing the market. Instead, long-term investors can focus their energy on buying the right companies they feel confident holding for years to come.

With that in mind, I’ve reviewed two top growth stocks in the tech sector. Both picks are primed for many more years of market-beating returns.

If you’re looking to add some growth potential to your portfolio, these two companies should be on your watch list. 

Growth #1: Shopify

It wasn’t long ago that Shopify (TSX:SHOP) was the largest stock on the TSX. But after shares dropped more than 80% from all-time highs, it didn’t take long for Shopify to give up its spot as the largest company in Canada.

Despite a selloff of nearly 90% from all-time highs, which were set in late 2021, the stock is still up a market-crushing 250% over the past five years. A 75% return over the last 12 months has certainly helped the company’s five-year chart.

A lot of growth was pulled forward for Shopify in 2020 and 2021, which at least partially explains the 2022 pullback. Extreme volatility aside, though, there’s no need to doubt the company’s growth potential. Year-over-year growth rates remain firmly in the double-digit range and the e-commerce space is only expected to continue growing.

If you can handle the volatility, this tech stock is loaded with market-beating growth potential. And with shares still down more than 50% from all-time highs, now could be an opportunistic time to be loading up.

Growth #2: Descartes Systems

Descartes Systems (TSX:DSG) is one of the few tech stocks on the TSX that has set new all-time highs in 2024. More than once already, I’ll add. 

Shares are up close to 20% on the year and 175% over the past five years. In comparison, the S&P/TSX Composite Index has returned 35% over the past five years, excluding dividends.

The $10 billion tech company is in the business of logistics and supply chain operations. Descartes Systems offers its global customers a wide range of cloud-based solutions to choose from.

It might not be as exciting as e-commerce but there’s no question that the logistics space is an important one. When inventory levels went haywire in the early days of the pandemic, Descartes Systems became that much of an important partner for its customers.

Investors can’t pick up shares at a discount today, but this is not a growth stock that you should wait on. 

If you’re in search of dependable, market-beating returns, Descartes Systems is worth paying a premium for.

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 Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Descartes Systems Group. The Motley Fool has a disclosure policy.

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