Now could be a great time to load up on Canadian growth stocks. Whether you’re looking for a high-priced tech company or a beaten-down stock poised for redemption, there’s at least one stock for you on the TSX.
Investing in Canadian growth stocks
The tech sector has no shortage of discounted stocks to choose from right now. Many of the discounted tech companies continue to trade below all-time highs from late 2021.
Of course, not all tech stocks are trading at bargain prices today. There are a select few that rebounded incredibly well in 2023 and have continued soaring right through 2024.
While growth stocks can offer plenty of upside, it’s important to remember the drawbacks. Higher growth potential can come with higher volatility. As long as you’re willing to be patient, though, volatility shouldn’t be the sole reason for keeping you from purchasing a growth stock.
I’ve reviewed two top Canadian growth stocks that offer loads of long-term upside for investors. If you’re looking to add some growth potential to your portfolio, these two companies should be on your watch list this month.
Stock #1: Descartes Systems
Descartes Systems (TSX: DSG) is one of the few tech stocks that set new all-time highs in 2024. In fact, the $10 billion company has set new highs several times this year already. And at this rate, I’d expect new highs to be set at least a few more times in 2024.
Shares are up a market-beating 15% on the year and more than 150% over the past five years. In comparison, the S&P/TSX Composite Index has returned less than 50% since early 2019.
Like many of its peers, Descartes Systems saw huge gains in 2020 and 2021, which were followed by a massive pullback. While 2022 was undoubtedly a painful year for Descartes Systems shareholders, it was also a rare buy opportunity. Canadian investors have not had many chances over the past two decades to load up at a discount like we saw in 2022.
There may be tech stocks on the TSX with higher ceilings than Descartes Systems, but not many can match the company’s track record of market-beating returns.
If you’re looking for a dependable growth stock, Descartes Systems is the company for you.
Stock #2: goeasy
goeasy (TSX: GSY) is one discounted stock that growth investors should act quickly on. Shares are up 50% over the past year and are now down just 25% from all-time highs. At a pace like that, it won’t be long before goeasy is back to its market-beating ways.
Even with the current discount though, shares are still up a whopping 300% over the past five years.
The high-interest-rate environment is one reason for the stock’s recent struggles. As a consumer-facing financial services provider, goeasy understandably has seen demand for its services dry up. But with potential rate cuts around the corner, there’s even more of a reason to be loading up while these discounted prices last.
- We just revealed five stocks as “best buys” this month … join Stock Advisor Canada to find out if Enbridge made the list!
Like Descartes Systems, goeasy is a proven market beater that doesn’t often go on sale like this.
Don’t miss your chance to load up. You’ll be thanking yourself before you know it for taking advantage of these bargain prices.
