3 Discounted TSX Growth Stocks to Add to Your TFSA This Month

The stock market is still trading at very depressed levels compared to the start of the year. Here are three TSX growth stocks you can buy at a discount!

Growth stocks around the world have been struggling to keep up with the market since the start of the year. Although this can be worrisome for investors’ portfolios, it also creates a great opportunity to buy shares at a massive discount. If investors can identify companies that can continue to succeed over the long term, then the recent downturn could be a massive wealth-generating event. In this article, I’ll discuss three discounted TSX growth stocks to add to your TFSA this month.

Canada’s top growth stock has been hit hard

Since its IPO, Shopify (TSX:SHOP)(NYSE:SHOP) has been a highly coveted stock by growth investors. Coming into this year, Shopify stock had gained nearly 4,900% since May 2015! However, today the stock trades about 30% lower than where it was at the start of the year. Unfortunately for investors, it’s unclear when Shopify stock will resume trading upwards. Over the past month, growth stocks, like Shopify, have been very volatile. Trading more than 5% in either direction on any given day.

I believe these troubles will only affect Shopify in the short term. Over the long term, Shopify stock should be able to generate solid returns for investors, as long as the e-commerce industry continues to grow as expected. Speaking of the industry, Shopify has continued to catch up to its major competitors. In Q2 2021, Shopify surpassed Amazon for the first time in terms of monthly unique customer traffic. Shopify is an excellent company experiencing a rough patch in its stock. This is a great opportunity to buy shares.

Renewable utilities will become more popular in the future

Over the past couple years, there has been a major push towards renewable energy. This can be seen at the government level as well as across many large enterprises. As a result, renewable utility companies have seen a lot of attention since 2019. Unfortunately, that means that renewable utility stocks have run up to unreasonable levels, explaining why an industry-wide correction may have occurred in 2021.

To make matters worse, renewable utility stocks seem to have gotten caught up in the correction affecting the broader market. This has hindered their ability to recover after sluggish performances in 2021. The bright side that has come from all of this is that companies like Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) continue to trade at a major discount.

Brookfield Renewable is a global leader in the industry, operating a portfolio of assets capable of producing more than 21,000 MW of power. After the completion of its current construction projects, the company expects to be able to more than double its current generation capacity. Brookfield Renewable is my top choice in an emerging industry.

This could be a home-run stock

Investors interested in potentially finding the next home-run stock should consider an investment in WELL Health Technologies (TSX:WELL). It is an up-and-coming contender within the massively competitive telehealth industry. WELL Health operates primary health clinics, supports more than 2,800 clinics on its EMR network, and provides an online marketplace to healthcare providers.

The company is well positioned for growth, especially after its successful expansion into the United States. WELL Health hopes to grow via an aggressive merger and acquisition strategy. The company is led by Hamed Shahbazi, who has an extensive experience in those sorts of deals. If you’re looking to add a telehealth stock to your portfolio, WELL Health could become the next home-run winner.

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.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Jed Lloren owns Brookfield Renewable Partners and Shopify. The Motley Fool owns and recommends Shopify. The Motley Fool recommends Amazon.

More on Investing

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

3 Artificial Intelligence (AI) Stocks to Buy With $1,000 and Hold for Decades

Three TSX stocks are excellent choices for Canadians looking for exposure to significant AI players.

Read more »

up arrow on wooden blocks
Investing

Here Are My Top TSX Stocks to Buy Right Now

These top TSX stocks are supported by businesses with solid growth prospects and have the ability to deliver stellar returns…

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Dividend Stocks

Where Will OpenText Stock Be in 1 Year?

OpenText (TSX:OTEX) stock's uncertain future: AI potential versus stagnant growth over the next 12 months

Read more »

Abstract Human Skull representing AI
Tech Stocks

Is Lightspeed Commerce a Buy After Q2 Earnings?

Given its healthy growth prospects, improving profitability, and reasonable valuation, I expect Lightspeed's uptrend to continue.

Read more »

GettyImages-three smiling investors_using tablet
Tech Stocks

2 Reasons to Buy Nvidia Before Nov. 20 and 1 Reason to Wait

This top AI stock has soared nearly 200% this year.

Read more »

woman looks out at horizon
Investing

Where Will Manulife Stock Be in 1/3/5 Years?

Let's dive into the near and medium-term outlook for top insurance company Manulife (TSX:MFC) shall we?

Read more »

A man smiles while playing a video game.
Tech Stocks

A Few Years From Now, You’ll Wish You Bought This Undervalued Stock

A dividend-paying but undervalued tech stock is a buying opportunity for both income and growth investors.

Read more »

a sign flashes global stock data
Dividend Stocks

3 Reasons to Buy TMX Group Stock Like There’s No Tomorrow

TMX Group (TSX:X) is Canada's biggest stock exchange owner.

Read more »