Missed Out on Nvidia? My Best Growth Stock to Buy and Hold

Are you interested in growth stocks? Here’s my best pick to buy and hold!

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Nvidia (NASDAQ:NVDA) has been one of the biggest stories in the market over the past year. In 2024, Nvidia stock has gained about 84%. While that may sound impressive, and it is, investors should take a look at what’s been happening over a longer period of time.

In 2022, tech stocks were hit very hard due to the changing economic conditions (i.e., rising interest rates). Many of the most popular stocks lost more than 50% of their value over the course of the year. Nvidia, in particular, lost more than 60% of its value. However, after hitting its lowest point in that year, Nvidia stock has been on a tear. It has gained about 700% in a year and a half! What’s even crazier is that Nvidia stock is now more than 160% higher than its high prior to the 2022 correction.

With all of that recent success, many investors might feel like they’ve missed the boat on this company. As a result, they may opt to avoid putting new money into this stock, thinking that it can only go down from here. While I don’t agree with that logic, I will offer a great alternative that growth investors can consider buying today. I believe this stock has all of the qualities necessary to continue growing for years to come.

What growth stock should investors focus on today?

If I could only choose one growth stock to invest in today, it would be Constellation Software (TSX:CSU). Although Constellation Software may be one of the best stocks on the market, it isn’t a name that most Canadians would be familiar with. That’s not because the company isn’t impressive; it’s mostly because Constellation Software doesn’t operate a consumer-facing business.

For those who aren’t familiar, Constellation Software is a tech conglomerate. It acquires vertical market software (VMS) businesses. It then provides those acquisitions with the resources necessary to turn them into exceptional business units. For much of its history, Constellation Software has focused on small- and medium-sized VMS businesses. However, since 2021, the company has expanded its targets to include large VMS businesses.

It turns out that the decision to do so was a great one. Over the past three years, Constellation Software stock has gained 116%. While that may not be as impressive as Nvidia’s recent run, it’s still quite impressive. Constellation Software also has a strong history of success in the stock market. Since listing on the TSX in 2006, this stock has gained more than 20,000%.

Foolish takeaway

Nvidia’s great run on the stock market continues. This has led many investors to become weary about putting new money into the stock as it may see a sharp correction in the future. If you find yourself in that camp, then consider investing in Constellation Software. This is a great business with a long history of success. The stock has been on an impressive run in its own right and could continue to do so for years to come.

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. The Motley Fool recommends Constellation Software and Nvidia. The Motley Fool has a disclosure policy.

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