2 of the Best TSX Growth Stocks to Buy Before July Ends

These two TSX growth stocks look worth buying in July after their recently started recovery.

| More on:

The TSX Composite Index just posted its biggest weekly gains in nearly 17 months with the help of a sharp recovery in some high-growth tech stocks. Despite continued inflationary pressures and a rising interest rate environment, investors’ high expectations from tech companies’ upcoming earnings could be one of the reasons for a sharp recovery in these growth stocks. That’s why it could be the right time for growth investors to act now and add some of these fundamentally strong stocks to their portfolios, as they have the potential to yield outstanding returns as their recovery begins.

In this article, I’ll highlight two of the best TSX growth stocks you can consider buying in July.

Descartes Systems stock

Descartes Systems Group (TSX:DSG)(NASDAQ:DSGX) is a Waterloo-based software company with a market cap of about $7.5 billion. Its software solutions primarily focus on improving the productivity and performance of logistics-related businesses. While its stock trades at $87.96 per share with 16% year-to-date losses, it has risen by 10% in July so far amid the recently started tech sector-wide recovery.

In the April quarter, Descartes Systems registered a 7.6% YoY (year-over-year) rise in its total revenue to US$116.4 billion as the demand for its software services strengthened amid the continued global supply chain crisis. During the quarter, its adjusted earnings also jumped by 28.6% YoY to $0.27 per share.

In order to accelerate its sales growth further, the tech firm is continuing to focus on new acquisitions. For example, Descartes recently acquired a Utah-based e-commerce shipping solutions provider, XPS Technologies, in a deal worth US$65 million (excluding potential performance-based consideration). Most of Descartes’s recent quality acquisitions are likely to help expand its global market share and accelerate its financial growth further in the long term. Given these positive factors, Canadian investors could consider buying this TSX growth stock before July ends.

Nuvei stock

Nuvei (TSX:NVEI)(NASDAQ:NVEI) could be another quality growth stock to consider in July. Shares of this Montréal-based payment technology company have seen 44% value erosion in 2022 so far. Nonetheless, NVEI stock staged a sharp recovery last week by jumping nearly 14% to $45.70 per share — possibly due to investors’ rising expectations from its upcoming earnings report.

The ongoing growth trend in Nuvei’s financials remains strong, as it registered a 43.1% YoY surge in its total sales in the March quarter to US$214.5 million. Increasing demand for its innovative payment platform amid reopening economies also drove its adjusted net profit up by 35% YoY to US$69.1 million for the quarter. Interestingly, the e-commerce segment made up nearly 88% of its total volume in Q1, reflecting consistent growth in digital commerce adoption in the post-pandemic era.

As Nuvei continues to advance its strategic initiatives by supporting more digital and fiat currencies on its platform, I expect its sustainable and profitable growth trends to remain intact in the coming years. Given these positive factors, long-term investors may consider buying this TSX growth stock right now after its recently started rally.

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.

The Motley Fool has positions in and recommends Nuvei Corporation. The Motley Fool recommends DESCARTES SYS and Descartes Systems Group. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Tech Stocks

An investor uses a tablet
Tech Stocks

Canadian Tech Stocks to Buy Now for Future Gains

Not all tech stocks are created equal. In fact, these three are valuable options every investor should consider.

Read more »

dividend growth for passive income
Tech Stocks

2 Rapidly Growing Canadian Tech Stocks With Lots More Potential

Celestica (TSX:CLS) and Constellation Software (TSX:CSU) are Canadian tech darlings worth watching in the new year.

Read more »

BCE stock
Tech Stocks

10% Yield: Is BCE Stock a Good Buy?

The yield is bigger than it's ever been in the company's history. That might not be a good thing.

Read more »

Happy shoppers look at a cellphone.
Tech Stocks

So You Own Shopify Stock: Is it Still a Good Investment?

Shopify (TSX:SHOP) stock has had a run, but there's still room to the upside.

Read more »

A person uses and AI chat bot
Tech Stocks

AI Where No One’s Looking: Seize Growth in These Canadian Stocks Before the Market Catches Up

Beyond flashy headlines about generative AI, these two Canadian AI stocks could deliver strong returns for investors who are willing…

Read more »

Data center servers IT workers
Tech Stocks

Better Buy: Shopify Stock or Constellation Software?

Let's dive into whether Shopify (TSX:SHOP) or Constellation Software (TSX:CSU) are the better options for growth investors in this current…

Read more »

nvidia headquarters with nvidia sign in front
Tech Stocks

Nvidia Just Delivered a Beat-and-Raise Quarter. There’s 1 Red Flag Investors Shouldn’t Ignore.

The chipmaker continued to benefit from robust demand for artificial intelligence (AI). But can it last?

Read more »

GettyImages-1473086836
Tech Stocks

Why Super Micro Computer Stock Is Soaring Today

The volatile stock is getting a boost from Nvidia.

Read more »