2 Brilliant Growth Stocks to Buy Now and Hold for the Long Term

Here’s why Constellation Software (TSX:CSU) and Boyd Group Services (TSX:BYD) are top growth stocks to buy and hold right now.

| More on:
stocks climbing green bull market

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors who have tilted their portfolios much more heavily toward growth stocks over the past two decades have undoubtedly outperformed those who have stuck with value-first investing strategies over this time frame. Indeed, given that our economy is now very tech-heavy, companies that continue to drive considerable growth tend to operate in this sector.

That said, for investors seeking sustainable long-term growth, I’ve got two picks (one tech-related company and one from a completely different sector) that I think are worth looking at. Here’s why I think these two growth stocks may make for great long-term buy-and-hold picks right now.

Constellation Software

Constellation Software (TSX:CSU) has grown to become a major contender in the global software market. The Canada-based company has consistently and effectively consolidated the fragmented software space, seeing incredible capital appreciation over the years (see the chart below) as Constellation acquires and integrates a range of vertical market software firms into its portfolio.

Created with Highcharts 11.4.3Constellation Software PriceZoom1M3M6MYTD1Y5Y10YALL9 Apr 20204 Apr 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '25202120212022202220232023202420242025202501k2k3k4k5k6kwww.fool.ca

The specific companies Constellation acquires span a range of sectors, including healthcare, real estate and retail. However, the commonality among these companies is that they’re often firms with under-appreciated technologies or trading at valuations the Constellation merger and acquisition (M&A) team thinks are attractive, given the value-add the company can provide to its various deals.

Over the long term, Constellation Software has continued to provide market-beating growth due to this strategy, growing revenues by an average compounded annual rate of around 30% per year since inception. That’s the kind of growth rate that may become more difficult to clear, given Constellation’s size (now trading at a market capitalization of more than $95 billion). However, given the company’s track record and prior consistency, I think this is a tech giant that can certainly continue to grow at this rate, given the sheer size of the immense opportunities that can be found within the tech sector right now.

Boyd Group Services

Boyd Group Services (TSX:BYD) is about as far from a tech stock as one can get. The company operates a range of auto body repair shops across North America under the Boyd Autobody & Glass and Gerber Collision & Glass banners.

Created with Highcharts 11.4.3Boyd Group Services PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

What’s interesting is that, like Constellation Software, Boyd has continued to provide very impressive growth over the long term, following a similar growth-via-acquisition strategy. Like the software industry, the auto body business is very fragmented, with plenty of smaller family-run chains looking to sell, as the baby boomers who started these businesses have difficulty prompting their kids to continue running the businesses or find other sellers.

This means there’s a significant opportunity for companies like Boyd to take advantage of market dislocations in particular markets where Boyd is really the only game in town. This has allowed the company significant pricing power in certain markets as the company looks to corner the market in key regions and become the go-to place for automobile owners to service their vehicles.

Additionally, with the average age of vehicles on North American roads continuing to get older, Boyd is a company that may benefit from increased maintenance spending and more significant repair jobs for vehicles that require service to stay roadworthy.

Over time, I think Boyd is a company with plenty of potential to grow both organically and via acquisition. This recent dip looks like a buying opportunity to me, at least for investors with a relatively long-term investing time horizon.

Should you invest $1,000 in Canoe Eit Income Fund right now?

Before you buy stock in Canoe Eit Income Fund, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Canoe Eit Income Fund wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Boyd Group Services and Constellation Software. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Investing

Stocks for Beginners

Dip Buyers Could Win Big: The Best Canadian Stocks to Buy Now

These two growth stocks have taken hits recently, but their fundamentals remain strong, and their growth prospects are intact.

Read more »

A bull and bear face off.
Stock Market

Bear Market Bargains Emerge as Recession Stocks Return

If you want a deal, then go to the best stocks during a recession market dip.

Read more »

Canadian Red maple leaves seamless wallpaper pattern
Dividend Stocks

5 Canadian Dividend Stocks to Buy and Hold for the Next 20 Years

These Canadian stocks have paid dividends for decades, making them reliable investments to generate regular passive income.

Read more »

An investor uses a tablet
Stocks for Beginners

The Smartest Canadian Stock to Buy With $250 Right Now

Are you looking for the smartest Canadian stock to buy right now? Consider this gem and avoid market volatility.

Read more »

Dividend Stocks

3 Canadian REIT Stocks to Buy and Hold for the Next Quarter-Century

These three Canadian REITs trade cheaply and are highly reliable, making them some of the best stocks you can buy…

Read more »

Electricity transmission towers with orange glowing wires against night sky
Investing

Fortis Just Might Be the Best Canadian Dividend Stock to Buy in April

Let's dive into a few reasons why Canadian utility giant Fortis (TSX:FTS) still looks like a screaming buy heading into…

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

1 Practically Perfect Canadian Stock Down 24% to Buy Now and Hold for Life!

CNR stock is a top Canadian stock for investors, especially with shares down on the TSX today.

Read more »

a man relaxes with his feet on a pile of books
Investing

Got $7,000? How I’d Spread It Across 5 Blue-Chip Stocks for an Investing Foundation

Spreading $7,000 across these five blue-chip stocks provides a solid foundation for long-term financial success.

Read more »