4 Cheap Growth Stocks That You’ll Be Happy to Own by 2032

These fundamentally strong growth stocks are trading cheap. Buying and holding them for the long term will help you accumulate significant wealth.

Growth stocks have lost substantial value this year. Fear of a slowdown in the economy led investors to lower their exposure to growth stocks, leading to a massive price correction. However, as top TSX growth stocks are trading at multi-year lows, now is the time to start buying them for the long term. Fundamentally strong growth stocks could recover swiftly, as the economy improves and generate stellar returns for their shareholders. 

So, if you have some spare cash, here are my top four picks you would be happy to buy now and hold until 2032. 

Shopify  

Tech stocks took a significant beating amid the recent selloff. With significant correction, tech stocks are looking like attractive long-term bets. Within the tech space, investors shouldn’t miss the opportunity to buy Shopify (TSX:SHOP)(NYSE:SHOP) stock at current levels. It has dropped nearly 80% from its peak and is trading at a significant discount.

Shopify stock is poised to gain from the reacceleration in e-commerce growth. Its aggressive investments in POS (point of sale) and fulfillment, the addition of new sales and marketing channels through partnerships with leading social media companies, and the growing adoption of payments and capital offerings provide a solid platform for growth and will drive its stock price higher. 

Aritzia

Aritzia (TSX:ATZ) stock has compounded investors’ wealth and has grown at a CAGR (compound annual growth rate) of 36.7% in the past three years, thus outperforming the market averages with its returns. This multi-channel fashion retailer benefits from strong demand and solid organic sales growth. Also, Aritzia is profitable. 

Looking ahead, Aritzia’s product innovation, geographic expansion, the opening of new boutiques, investments in brand awareness, and entry into new verticals (in intimates and swimwear) bode well for growth. Moreover, its solid control over expenses, focus on debt reduction, and stable free cash flows will fuel its growth and support the uptrend in its stock price. 

goeasy

Leasing and lending services provider goeasy (TSX:GSY) has been growing rapidly. goeasy’s revenue and net income have grown at a CAGR of 15.9% and 38.2%, respectively, since 2011. Further, the momentum in business has sustained in 2022. Its top line has grown by 30% in the six months of 2022, led by higher loan originations and volumes. Moreover, its net income rose by 15% year over year during the same period. 

goeasy revenues are expected to increase at a double-digit rate, reflecting benefits from higher loans and a wide product range. Moreover, its bottom line will benefit from increased sales, solid credit performance, and higher payment volumes. goeasy has hiked its dividend at a CAGR of 34.5%in the past eight years. Further, given the strength in its earnings base, goeasy could continue to increase its dividend at a solid rate. 

Docebo

Docebo (TSX:DCBO)(NASDAQ:DCBO) is growing fast, despite the economic reopening. It provides software, solutions and tech that support corporate e-learning. Its annual recurring revenues have been growing at a CAGR of 66% since fiscal year 2016. Meanwhile, it benefits from an increase in customer base, active users, and growth in average contract value (it’s increased more than four times since 2016).

Docebo’s strength in the base business, new product launches, acquisitions, and geographic expansion are expected to support its growth. Furthermore, higher revenues from its existing customers through its land and expand strategy and high retention rate are positives and should support the recovery in its stock price. 

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. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends ARITZIA INC and Docebo 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 »