As the TSX Composite benchmark recently climbed to fresh record highs, many investors are looking for the best long-term growth stocks to add to their portfolios. On the one hand, short-term investing can sometimes be profitable, but it can also be risky and unpredictable. Long-term investing, on the other hand, can offer more stability and stellar returns over time. This is one of the key reasons why the Foolish Investing Philosophy of taking the long-term approach is so popular among a large number of successful investors around the world.
In this article, I will talk about three of the best long-term TSX growth stocks, all of which have robust fundamentals and are excellent buys today.
goeasy stock
goeasy (TSX: GSY) is the first stock in my list of top long-term TSX growth stocks to buy today. It’s a Mississauga-based financial services provider that primarily focuses on providing subprime consumer loans to its customers. It currently has a market cap of $3 billion as its stock trades at $180.50 per share after rallying by around 65% in the last six months. Interestingly, GSY stock also offers a decent 2.6% annualized dividend yield at the current market price.
Even as a tough macroeconomic environment and high interest rates have affected the loan growth of most large banks, goeasy has been consistently expanding its loan originations and portfolio. As a result, the company’s revenue grew positively by 24.5% YoY (year over year) in 2023, and its adjusted annual earnings jumped by 23% from a year ago.
While GSY stock has already gone up by about 928% in the last decade, it still has room for further gains with the growing popularity of its financial offerings.
OpenText stock
Another top TSX growth stock that has been delivering impressive growth is OpenText (TSX: OTEX). It’s a Waterloo-headquartered software company that primarily focuses on providing enterprise information management software and cloud services to its clients. It has a market cap of $13.2 billion as OTEX stock trades at $40.50 per share after rising by nearly 8% over the last six months. At this market price, the tech company also offers a 2.8% annualized dividend yield.
In the first half of its fiscal year 2024 (ended in December 2023), OpenText posted a solid 69.2% YoY increase in its sales to US$3 billion as the demand for its cloud-based services strengthened further. This optimism was also reflected in its operating cash flows and free cash flows for the first half of the fiscal year, which saw improvements of 79.7% and 87.4% YoY, respectively.
Besides these positive factors, OpenText’s strong balance sheet and ability to maintain strong financial growth trends even in challenging economic times make it an amazing TSX growth stock to hold for the long run.
BlackBerry stock
BlackBerry (TSX: BB) could be another attractive TSX growth stock you can buy today and hold for the long term. This former smartphone maker has turned into an enterprise software company, which has high growth potential in the age of digital transformation.
While BlackBerry currently generates most of its profits from its cybersecurity segment, the contribution of its IoT (Internet of Things) segment in its overall financial growth is increasing fast. Notably, under its IoT segment, the company has been developing advanced technological solutions for futuristic mobility, which could witness huge demand in the coming years and help its share prices soar.
