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Have you ever wondered how people manage to make a fortune by investing in stocks? If you ask successful, experienced investors, most would say that you need to be consistent and maintain a long-term approach.
Another key factor that plays an important role in deciding your chances of winning in the stock market is how you react to market sell-offs. While the stock market sell-offs may look risky at first glance, they open opportunities to buy some fundamentally strong growth stocks at huge discounts. Buying quality TSX growth stocks when the market is down can help you get outstanding returns on investments if you hold them for years to come.
In this article, I’ll highlight two of the best TSX growth stocks you can buy in bulk if the market slips again.
Lightspeed Commerce (TSX:LSPD)
Lightspeed Commerce is a Montreal-based software company that primarily focuses on providing a comprehensive commerce platform to merchants worldwide. Despite experiencing a 2.3% year-to-date loss, trading at $18.90, and having a market cap of $2.9 billion, Lightspeed Commerce presents a compelling investment opportunity.
One of the key factors that make TSX LSPD appear undervalued is its ongoing financial growth. Despite challenges like high inflation, the company reported an impressive 33.2% year-over-year increase in revenue for its fiscal year 2023, which ended in March. Furthermore, it posted adjusted earnings of US$0.17 per share, a significant improvement over the US$0.37 per share loss in the previous fiscal year.
Lightspeed has consistently surpassed analysts' revenue and earnings estimates for five consecutive quarters, and as the macroeconomic landscape improves in the coming years following interest rate hikes, you can anticipate further enhancements in its financial growth trends.
OpenText (TSX:OTEX)
OpenText is another attractive TSX growth stock worth considering. Despite its 14.3% year-to-date gains, the stock has seen about a 16% decline in the last 30 days, making it an appealing purchase on the dip. With a market cap of $12.4 billion and trading at $45.86 per share, OpenText presents an opportunity for investors.
OpenText's diverse range of information management software solutions has remained in demand even during the ongoing economic slowdown. In its fiscal year 2023, which concluded in June, the TSX OTEX achieved positive revenue growth of over 28% year-over-year, totaling a record US$4.5 billion. Importantly, nearly 81% of its total revenue for the previous fiscal year was recurring annually.
As OpenText focuses on enhancing organic growth through customer success and innovation, it anticipates a significant improvement in earnings growth for its fiscal year 2024. With strong fundamentals, investing in this remarkable TSX growth stock during a downturn could yield favorable results in the long term.
In conclusion, while market sell-offs may initially appear daunting, they often create opportunities to invest in quality growth stocks at discounted prices. Both Lightspeed Commerce and OpenText have displayed resilience in challenging economic conditions and offer promising growth potential for investors with a long-term perspective
