5 of the Best TSX Stocks to Buy in March 2021

I see the decline in several TSX stocks as an opportunity to go long on the shares of these high-growth Canadian companies.

Several TSX-listed stocks have lost a fair amount of value in the recent past despite positive secular industry tailwinds and strong fundamentals. I see this decline as an opportunity to accumulate some of these high-growth Canadian stocks for the long term. 

Here’s a list of five such high-growth stocks that you could consider buying right now.

Shopify 

Shopify (TSX:SHOP)(NYSE:SHOP) has declined by about 24% in one month as the company expects the pace of shift towards e-commerce platform to normalize with the reopening of retail stores, vaccination, and easing lockdown measures. While Shopify’s growth rate could decelerate a bit compared to 2020, I believe a continued shift toward the e-commerce platform and increased e-commerce spending could push its stock higher. 

Shopify’s expansion of its fulfillment network, increased adoption of its payments platform, and diverse sales and marketing channels augur well for growth. Meanwhile, international growth and a large addressable market could continue to accelerate its growth. 

Lightspeed 

Shares of Lightspeed POS (TSX:LSPD)(NYSE:LSPD) dropped about 21% in one month. The selloff in Lightspeed stock follows a stellar bull run over the past several months and presents an excellent opportunity for investors to accumulate this high-growth stock

Lightspeed is expected to gain from the increased adoption of the cloud-based omnichannel payment platform. Meanwhile, its strategic acquisitions are likely to bolster its growth further through geographic expansion and the addition of new customers. Moreover, Lightspeed’s focus on product expansion and up-selling bode well for growth. 

Cargojet

Cargojet (TSX:CJT) has been a money multiplier for years. The air cargo company has delivered exceptional returns over the past several years, thanks to its resilient and high-growth business. Its stock has decreased by about 17.5% in one month and looks attractive at the current price levels. 

While the demand for its services could show some normalization in 2021 compared to 2020, it’s likely to stay elevated, reflecting higher e-commerce-related volumes. The company’s growing fleet size, cost optimization, and strong national network position it well to continue to gain market share and deliver strong operating and financial performance. Also, its long-term customer contracts and next-day delivery services provide a strong base for growth. 

Docebo 

Shares of the enterprise learning platform provider, Docebo (TSX:DCBO)(NASDAQ:DCBO), fell nearly 25% in one month despite delivering stellar financial performance. I believe increased adoption of digital learning tools could continue to boost Docebo’s prospects in the future. 

The company’s continued growth in annual recurring revenue and subscription revenue growth supports my bullish view on the stock. Meanwhile, its growing customer base, increase in average contract value, and higher retention rate is expected to drive its revenues and cash flows. Sustained momentum in its business, increasing growth investments, and a large addressable market should accelerate its growth rate further. 

Dye & Durham

Dye & Durham (TSX:DND) stock has slipped over 16% in one month. However, the momentum in its base business continues. Dye & Durham continues to grow its revenues and adjusted EBITDA at a breakneck pace, reflecting increased demand for its products and services and its accretive acquisitions. 

Dye & Durham’s large and diverse customer base, growing geographic footprint, and opportunistic acquisitions are likely to drive its financials in the coming years. The company projects stellar growth in its adjusted EBITDA over the next two years, which could continue to lift its stock higher in 2021. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends CARGOJET INC., Shopify, and Shopify. The Motley Fool owns shares of Lightspeed POS Inc.

More on Tech Stocks

Man data analyze
Tech Stocks

3 Reasons Celestica Stock Is a Screaming Buy Now

These three reasons make Celestica stock a screaming buy for long-term investors.

Read more »

profit rises over time
Dividend Stocks

These 2 Dow Stocks Are Set to Soar in 2025 and Beyond

Two Dow Jones stocks are screaming buys but Canadians must hold them in an RRSP or RRIF to avoid paying…

Read more »

telehealth stocks
Tech Stocks

Well Health Stock: Buy, Sell, or Hold?

Another record-breaking quarter and strong demand sets the stage for continued momentum for Well Health stock.

Read more »

3 colorful arrows racing straight up on a black background.
Dividend Stocks

TSX Stocks Soaring Higher With No Signs of Slowing

Three TSX stocks continue to beat the market and could soar higher in an improving investment landscape.

Read more »

profit rises over time
Tech Stocks

2 Non-AI Tech Stocks to Buy in November for Better Returns

Not all AI stocks are riding the hype train, and for many investors, well-understood and predictable growth stocks might be…

Read more »

worry concern
Tech Stocks

In a Few Years, You’ll Probably Regret Not Owning BlackBerry Stock

Here’s why I believe BlackBerry could be one of the most overlooked Canadian tech stocks right now.

Read more »

A worker uses a double monitor computer screen in an office.
Tech Stocks

Is Constellation Software Stock a Buy for its 0.25% Dividend Yield?

Here's what investors may want to consider when it comes to Dollarama (TSX:DOL) and its relatively low dividend yield.

Read more »

Nurse talks with a teenager about medication
Tech Stocks

Shares of WELL Health Just Zoomed. Is It a Buy?

Given its improving financials and healthy growth prospects, WELL Health could deliver superior returns over the next three years.

Read more »