There are plenty of intriguing growth stocks to consider picking up now that things are starting to look higher on the high-tech trade. Indeed, the summertime rally could get sizzling for the recovering growth stars, many of which were unfairly dumped amid the Springtime Liberation Day sell-off. And while there’s still plenty of tariff risk, I think that young investors focused on building wealth for the next 10-15 years should not be afraid to scoop up a bargain if one so happens to appear between now and the end of the year.
Of course, putting a colossal lump sum to work at one given time may not be the best move for most, especially in light of new risks and how “toppy” the broad TSX Index feels right now. Whenever the stock market is flirting with new heights and the macro “feel” is a bit jittery, doing more incremental buying than backing up the truck, I believe, could be the best course of action. In this piece, we’ll check in on a smart growth stock that could be worth picking up for $1,000 or less.
Source: Getty Images
Shopify
Canadian e-commerce platform developer Shopify (TSX:SHOP) may very well have what it takes to be in the class of the Magnificent Seven or whichever big acronym ultimately succeeds it in 2025. The hyper-growth stock is also hyper-volatile, with a beta of 2.63, which entails a far choppier ride than the broader market. Either way, though, I think the stock is a fantastic buy as it aims to recover to those 2021 all-time highs (currently 29% away) and beyond. Indeed, the road back above $200 per share will not be an easy one. In any case, I’m encouraged by the recent analyst upgrades surrounding the name.
Just last week, a huge, respected member of the analyst community (Andrew Bauch) stated that the Canadian firm could be viewed as a thematic artificial intelligence (AI) story. He’s absolutely right on the money to highlight Shopify’s impressive AI capabilities. With so many AI-leveraging tools already in the pipeline, it’s no mystery why Mr. Bauch is so upbeat about the firm, as AI continues to have a positive impact on the broader tech sector this June.
Indeed, I’ve been pounding the table on Shopify’s AI prowess for quite a while now (well over a year). As more analysts begin to factor in how AI will affect earnings in the coming years, I think we should get ready for a queue of price target upgrades. Indeed, Bauch is spot-on when he says Shopify is more of an underappreciated way to play the AI boom.
A growth stock to hold for the long haul
And while the stock doesn’t look like a steal at more than 87 times trailing price to earnings, I think that it’s just a matter of time before Shopify proves just how powerful of an AI winner it can be. Indeed, the Shopify platform is incredibly sticky, and it could evolve into a supercharged growth engine as management introduces even more AI under the hood. As the firm triples down on the revolutionary technology, I think it’d be wise to take advantage of any pullbacks.
