2 Canadian Growth Stocks Set to Skyrocket in the Next 12 Months

There are some great growth stocks out there for investors to consider, but of them all these two look like top-notch options.

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Investing in growth stocks can feel like taking part in a high-stakes adventure. Yet the rewards often make it worthwhile. This year, there are compelling reasons to consider adding growth stocks to your portfolio. The economic landscape, with moderating inflation and stable interest rates, provides a fertile environment, especially for companies focused on expansion and innovation. With improved market sentiment, growth stocks could offer the potential for impressive returns.

E-commerce growth stocks

Canada’s growth-focused industries are showing remarkable promise. Technology continues to dominate as artificial intelligence and e-commerce drive innovation and demand. Similarly, the healthcare sector is buzzing with activity, thanks to breakthroughs in biotech and pharmaceuticals. Green energy is also emerging as a key area of growth, with companies investing heavily in sustainable technologies to meet increasing demand for environmentally friendly solutions.

These industries are not just trends but are shaping the future of the Canadian economy. But there are two I’d focus in on. Among the standout options on the TSX are Shopify (TSX:SHOP) and Lightspeed Commerce (TSX:LSPD), two tech giants that have proven themselves as resilient and innovative players.

Strong future growth

Shopify, a global leader in e-commerce solutions, has consistently delivered stellar results. In its latest earnings report, Shopify revealed a strong uptick in revenue. Driven by the growth of its merchant base and the increasing adoption of its tools. Over the past year, its stock price has mirrored this success, reflecting its ability to adapt and thrive in a competitive landscape.

Shopify’s future outlook is equally bright. The growth stock continues to innovate, rolling out new features that make it easier for businesses to succeed online. With the ongoing shift to digital retail, Shopify is in a prime position to ride this wave of transformation, making it a strong contender for long-term growth.

Created with Highcharts 11.4.3Shopify + Lightspeed Commerce PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Lightspeed Commerce, however, specializes in point-of-sale and e-commerce software that caters to small and medium-sized businesses. Recent earnings reports show steady growth in revenue, supported by the expansion of its product offerings and customer base. The growth stock has gained significant traction over the past year, reflecting investor confidence in its ability to capture market share.

Looking forward, Lightspeed’s prospects are equally exciting. As more businesses digitize their operations, Lightspeed’s platform is perfectly positioned to meet their needs. The growth stock’s commitment to innovation and its push into new global markets signal a growth trajectory that’s hard to ignore.

Foolish takeaway

These two growth stocks represent the potential of Canada’s thriving tech sector, but they’re not just about technology. They embody the qualities that make growth stocks so appealing: innovation, adaptability, and a forward-thinking approach. While investing in growth stocks does carry risk, the potential for outsized returns often outweighs the volatility, particularly when the market dynamics are in their favour.

Of course, the key to successful investing is balance. Pairing growth stocks like Shopify and Lightspeed with stable, income-generating options can create a well-rounded portfolio that captures the best of both worlds. While the future of growth stocks looks bright this year, it’s always wise to align your investments with your goals and risk tolerance.

If you’re looking for excitement, innovation, and the possibility of impressive returns, growth stocks might just be your best bet. With industries like tech, healthcare, and green energy leading the charge and standout performers like Shopify and Lightspeed blazing the trail, now could be an excellent time to dive into the world of growth investing. Remember to keep an eye on the market, do your homework, and stay true to your financial goals as you embrace the adventure.

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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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy.

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