Canadian investors have been enjoying a growth-filled year in 2024 so far. Not even including dividends, the S&P/TSX Composite Index is up about 13% on the year. Even so, there are still plenty of deals on the TSX for opportunistic investors to take advantage of.
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Loading up on Canadian growth stocks today
I’d strongly suggest that long-term growth investors have their watch lists up to date right now. There are lots of high-growth companies that continue to trade below highs from late 2021.
Some of those beaten-down stocks may take some time to return to all-time highs. And that’s exactly why my two recommended companies might be better suited for long-term investors.
Both picks certainly have the potential to return to their market-beating ways. That return likely won’t be happening overnight, though.
If you’re willing to be patient, I’d make sure to have these two growth stocks on your radar. These discounted prices won’t last forever.
Growth stock #1: Shopify
Shares of Shopify (TSX:SHOP) are flat on the year but are up significantly from their lows in 2022. Since late 2022, the tech stock is up close to 200%. Yet the stock price remains more than 50% below all-time highs from late 2021. It’s been a volatile ride for Shopify in recent years.
Putting the volatility of the stock aside, the business remains loaded with growth potential. As a major international player in the e-commerce space, I wouldn’t want to bet against Shopify’s ability to continue growing revenue at a double-digit rate over the next decade.
Investors who are prepared for a bumpy ride should give serious consideration to loading up on one of the top tech stocks around, especially at such a bargain price.
Growth stock #2: goeasy
In comparison to Shopify, goeasy (TSX:GSY) is not exactly a household name amongst Canadian growth investors. The $3 billion company pales in comparison to Shopify’s massive $125 billion market cap.
When it comes to market-beating returns, though, the two companies are neck and neck. Even though shares of goeasy are down about 20% from all-time highs, the growth stock is up more than 200% over the past five years. For what it’s worth, that’s almost double what Shopify has returned to its shareholders over the same period.
As a consumer-facing financial services provider, now is the time to load up on shares of goeasy. The stock has been reacting positively as interest rates have been coming down, with shares up 50% over the past 12 months.
At this rate, goeasy won’t be trading at a discount for much longer. Don’t miss your chance to load up on a market-beating growth stock that rarely goes on sale.
Foolish bottom line
Growth stocks may carry a little extra risk, but the upside can be well worth it. After all, as long as you’re investing for the long term, there’s nothing wrong with a little volatility.
Shopify and goeasy are two companies that are loaded with long-term growth potential. Both picks have strong market positions in their respective industries and have proven track records of delivering market-beating returns.
