2 Top TSX Growth Stocks That Are Screaming Buys Today

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Written by Jitendra Parashar at The Motley Fool Canada

Investing in Canadian growth stocks could be a great strategy to multiply your money over the long run. Even as the global macroeconomic environment remains uncertain, growth companies, which are expected to grow at an above-average rate compared to other companies in the market, have the potential to yield higher returns. In addition, the recent stock market selloff has made several quality Canadian growth stocks look way too undervalued, giving TSX investors another reason to buy them on the dip today.

In this article, I’ll highlight two of such top TSX growth stocks I find worth buying today to hold for the long term.

Lightspeed Commerce stock

Lightspeed Commerce (TSX:LSPD) could be one of the best growth stocks you can buy on the Toronto Stock Exchange today. LSPD currently has a market cap of $3.5 billion, as its stock trades at $22.10 per share. Although this Montréal-headquartered commerce platform provider’s shares continue to outperform the broader market by a wide margin this year with 17.4% year-to-date gains, it still looks highly undervalued after witnessing a massive selloff in the previous couple of years.

In the quarter ended in September 2023, Lightspeed’s total revenue rose 25.4% from a year ago to US$230.3 million, exceeding analysts’ expectations of around US$214 million. With the help of a solid 36% YoY (year-over-year) increase in its transaction-based revenue, the Canadian growth company posted US$6.4 million in adjusted quarterly net profit compared to its adjusted quarterly loss of around US$2 million in the same quarter of the previous year. Its latest quarterly profits also exceeded analysts’ net profit estimate of US$0.4 million.

Lightspeed’s strong financial growth last quarter reflects its ability to continue growing, even amid a challenging macroeconomic environment with stable demand for its products. You can expect this demand growth to accelerate further as soon as the global economic uncertainties gradually subside. Considering that, LSPD could be an attractive TSX growth stock to buy now after it has lost nearly 58% of its value in the last three years amid the broader market volatility.

Nuvei stock

Nuvei (TSX:NVEI) is another beaten-down TSX growth stock I find cheap to buy today. This Canadian fintech company currently has a market cap of $3.8 billion, as its stock trades at $27.11 per share after diving by more than 20% in 2033 so far.

Even as macroeconomic challenges and increased volatility in the cryptocurrency market continue to affect the demand for digital payment solutions, Nuvei has managed to post strong improvements in its YoY revenue growth in the last three consecutive quarters.

In the September quarter, the company’s total revenue jumped 54.6% YoY to US$304.9 million. Although increased net finance cost and currency headwinds affected its bottom line, Nuvei posted a strong 36% YoY improvement in its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization). Similarly, its adjusted quarterly EBITDA margin remained firm at 36.3% in the third quarter of this year.

As an upcoming global economic recovery is likely to increase the demand for digital payment solutions, I expect Nuvei’s financial growth trends to improve in the next couple of years, which should help the share prices of this top TSX growth stock soar.

The post 2 Top TSX Growth Stocks That Are Screaming Buys Today appeared first on The Motley Fool Canada.

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The Motley Fool has positions in and recommends Nuvei. The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.