The Canadian stock market has experienced significant volatility this year. In early April, the S&P/TSX Composite Index dropped a staggering 10% in less than a week. Despite that, the index is still up an impressive 5% on the year, not even including dividends.
The market as a whole may have rebounded well from April’s sell-off off but not all individual stocks have fared as well. As a result, there’s no shortage of top-quality stocks on the TSX trading at opportunistic discounts right now.
With that in mind, I’ve put together a basket of three growth stocks that are no strangers to outperforming the market’s returns. And with most of them trading at significant discounts today, now could be an excellent time for a long-term investor to load up.
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Shopify
You can’t mention Canadian growth stocks and not include Shopify (TSX:SHOP). The tech stock has been a growth juggernaut on the TSX ever since it went public in 2015, and I’d expect that to continue for years to come as well.
Shopify is still in the process of recovering from its sell-off that lasted for almost the entire year in 2022. Since bottoming out in late 2022, though, the tech stock has returned to its market-crushing ways. Shares are up a whopping 200% since the start of 2023.
It might be a bumpy ride, but I certainly would not want to bet against Shopify’s long-term growth potential. And with shares down close to 30% from all-time highs, this is not a discount you’ll want to miss out on.
Lightspeed Commerce
Speaking of volatility, long-term Lightspeed Commerce (TSX:LSPD) shareholders have had a wild ride over the past several years.
At one point in late 2021, the stock was a seven-bagger from its initial public offering price. Today, shares are trading at a loss from when Lightspeed joined the TSX in 2019, while the Canadian market as a whole is up more than 50%.
The future growth potential for Lightspeed pales in comparison to Shopify, but that doesn’t mean there isn’t any value here. Shares are trading at an extremely affordable price today, and revenue growth is still in the double-digit range.
If you’re looking for a low-risk, high-reward type of investment, Lightspeed is the company for you.
goeasy
To balance out the two tech stocks in this basket, I’ve included an under-the-radar financial services company.
goeasy (TSX:GSY) is a consumer-facing financial services provider that boasts a strong track record of delivering market-beating returns. Shares are up a market-crushing 175% over the past five years and 700% over the past decade.
Growth has understandably slowed in recent years, but there’s no reason to believe that goeasy will begin underperforming the market’s returns anytime soon.
goeasy is a great option for growth investors who have found themselves overindexing to the tech sector, which I will admit I am guilty of.
Shares are trading at a rare discount today, down nearly 30% from all-time highs, which were last set in late 2021.
