2 Top Growth Stocks to Buy Right Now and Hold for the Long Term

Growth-oriented companies suffered a sharp correction in 2022, although you can buy two outstanding growth stocks right now and hold for the long term.

| More on:

Growth stocks lost steam to start 2022 and suffered a sharp correction. The technology sector, where most growth-oriented companies belong, are deep in the red with its 42.21% year-to-date loss. However, if you’re looking for the top growth stocks to buy right now and hold for the long term, skip the e-commerce giants.

Absolute Software (TSX:ABST) and Verde AgriTech (TSX:NPK) are better buys for strong product demand and growing market. Both stocks are also beating the market so far in 2022.

Cyber security and cyber resilience

Absolute Software didn’t succumb to the market rout in September 2022 and instead advanced 12.6% from August 31, 2022. At $15.98 per share, current investors enjoy a 37.7% year-to-date gain in addition to the 2% dividend yield. Market analysts covering the stock have a 12-month price target between $18.41 (average) and $23.17 (high).

The $815.79 million company is the lone provider of self-healing, intelligent security solutions globally. Absolute Software help customers manage and secure their data, devices, and applications with an unbreakable connection to every endpoint, whether on or off network.

In fiscal 2022 (12 months ended June 30, 2022), recurring revenue increased 64% year over year to US$191.5 million. Its president and chief executive officer (CEO) Christy Wyatt said 2022 is Absolute’s strongest year in recent history. Wyatt noted the increasing awareness of Security and IT teams on the need for cyber defense and cyber resilience.

Among the product and service highlights in fiscal 2022 were the rise in mission-critical applications in Absolute’s Application Resilience library to over 60. Apart from scaling the business in international markets, Absolute struck strategic partnerships with AT&T, Dell, Hewlett Packard, and Lenovo. It also acquired NetMotion and launched the first-ever self-healing Zero Trust platform.  

For fiscal 2023, management expects an adjusted revenue growth between 14.8% and 17.1%. However, investors should look at the bigger picture. Industry experts project the global cyber security market to grow from US$155.83 billion in 2022 to US$376.32 billion by 2029, or a compound annual growth rate (CAGR) of 13.4% within the forecast period.

Agricultural technology

Verde Agritech is among the top-performing stocks in the last 12 months. At $4.75 per share, the trailing one-year price return is 271.7%. Had you invested $20,000 a year ago, your money would be worth $74,218.75 today. On a year-to-date basis, the gain is 69.64%.

The $248.11 agri-tech company is a potash multi-nutrient fertilizer producer whose purpose is to improve the health of all people and the planet. In the first half of 2022, revenue grew exponentially by 483% to $36.16 million versus the second quarter of 2021. Net profit reached $13.84 million compared to the $1.53 net loss in the same quarter last year. Sales volume grew 112% year over year to 202,255 tonnes.

Management said the impressive growth over the second quarter of 2022 was underpinned by increased productivity and the market’s growing demand for its product and price increase. More importantly, the quarterly performance reflects Verde’s ability to generate significant free cash flow in the long term. For the full-year 2022, the sales target is 1,000,000 tonnes.

Potential multi-baggers

Absolute Software and Verde AgriTech are ideal long-term holdings and potential multi-baggers in the near to medium terms. Now is the best time to take positions in one or both growth stocks.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Absolute Software Corporation. The Motley Fool recommends Absolute Software Corp and Dell Technologies Inc. The Motley Fool has a disclosure policy.

More on Investing

Canadian Dollars bills
Dividend Stocks

3 Monthly-Paying Dividend Stocks to Boost Your Passive Income

Given their healthy cash flows and high yields, these three monthly-paying dividend stocks could boost your passive income.

Read more »

ways to boost income
Investing

Are Telus and BCE Stocks a Smart Buy for Canadian Investors?

Telus (TSX:T) and BCE (TSX:BCE) have massive dividend yields, but their shares have been quite sluggish!

Read more »

investment research
Tech Stocks

Is OpenText Stock a Buy, Sell, or Hold for 2025?

Is OpenText stock poised for a 2025 comeback? AI ambitions, a 3.8% yield, and cash flow power make it a…

Read more »

Make a choice, path to success, sign
Dividend Stocks

The TFSA Blueprint to Generate $3,695.48 in Yearly Passive Income

The blueprint to generate yearly passive income in a TFSA is to maximize the contribution limits.

Read more »

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

Emerging Canadian AI Companies With Big Potential

These tech stocks are paving the way to an AI-filled future, but still offer enough growth ahead for a strong…

Read more »

Young Boy with Jet Pack Dreams of Flying
Tech Stocks

Is Constellation Software Stock a Buy, Sell, or Hold for 2025?

CSU stock has long been a strong option for high growth, high value stocks. But are there now too many…

Read more »

rising arrow with flames
Investing

2 Riskier Stocks With High Potential for Canadian Investors in November

Risky stocks such as Well Health Technologies have the potential to provide life-changing long-term returns.

Read more »

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »