Canadian Millennials should stick with the growth names at the core of their TFSA and RRSPs, even as some investors get a tad overexcited over the new technological trends in play. Undoubtedly, artificial intelligence (AI) could seriously enhance margins and sales growth over the next three to five years. And while it’s difficult to gauge, I do think that young investors with more than a decade to invest should stay the course and take advantage of the pullbacks (like the one endured back in April) to get more shares for less.
Indeed, those stock market corrections are always going to happen, and they should be viewed as “sales,” especially for those who’ve committed to playing the long-term game. You’d be surprised by the type of high-quality names you can get on the cheap when the market loses its cool!
In any case, let’s check in on two growthy TSX stocks I’d look to buy and hold for the next 10 years and perhaps even beyond!
Constellation Software
Constellation Software (TSX:CSU) is a sleeping giant in Canada’s tech scene, up just 5% year to date as the S&P blasted off on the back of the AI trend. Indeed, Constellation stands out as a hidden AI beneficiary, given its ability to spot talent across the private software scene. Though the near-$100 billion company is still lesser-known among American investors, I think it’s a name that deserves to be talked about for those looking for magnificence beyond the so-called Magnificent Seven stocks.
Either way, the latest 10% drawdown in the stock strikes me as a buying opportunity in a name that has consistently outpaced the TSX Index‘s returns without significantly more risk. With a beta of 1, you’re getting about as much choppiness as the TSX Index. As the firm gets back to M&A while driving organic growth, I see considerable upside in the back half. Are shares cheap at just north of 38 times forward price-to-earnings (P/E)?
Not in a traditional sense. But we’re talking about a proven grower here that may not yet have the AI premium attached quite yet. Given this, I’d not be afraid to buy a share ($4,681 each at writing!) in August.
Quebecor
Quebecor (TSX:QBR.B) isn’t your typical growth stock, but it is a name that could outgrow its peers in the space as the Quebec-based telecom really drives wireless growth through its Freedom Mobile business. Indeed, Freedom is catching up in a big-time way.
As the firm invests to beef up its 5G network, I’d be afraid if I were one of the Big Three industry incumbents. Of course, Freedom may be picking up the pace (relatively speaking), but it’s the long-term trajectory that has me most bullish, especially as Quebecor looks to put on its disruptor hat as it grows its revenue mix beyond Quebec.
At 11.7 times trailing P/E, I consider the year-to-date market beater (shares up 25% in 2025 thus far) to be worth stashing away while shares are still cheap. In the meantime, there’s a nice 3.7% yield to collect, as Quebecor looks to take more share in wireless while pursuing efforts to maintain its operational excellence.
