3 TSX Stocks I’d Buy Today and Hold Forever

These fundamentally strong stocks are trading at +60% discounts and could help create significant wealth in the long term.

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

Source: Getty Images

The sharp correction in top TSX stocks (some Canadian stocks have lost more than 50% of their value from the peak) indicates that the market has already priced in the possibility of a slowdown in the economy. This suggests that the downside remains mostly capped, presenting a buying opportunity for investors with a long-term outlook. 

Against this backdrop, I have shortlisted three TSX stocks (down more than 60% from their 52-week highs) that I’ll buy today and hold forever to outperform the benchmark index by a wide margin. These stocks have solid fundamentals and businesses that can easily navigate the current challenges and recover swiftly as the economy improves. 

Shopify  

Shopify (TSX:SHOP) is an obvious choice, given its stellar growth prospects. The stock has corrected about 84% from its 52-week high and is trading at a multi-year low, presenting an excellent buying opportunity. Though the normalization in e-commerce demand, macro headwinds, and adverse currency movements will hurt its near-term prospects, its long-term fundamentals remain strong, given the digital shift, its growing e-commerce capabilities, and entry into new geographies. 

Shopify’s revenues reflect a CAGR (compound annual growth rate) of 53% in the last three years. Meanwhile, the growth rate will likely improve as the company will benefit from its aggressive investments in the e-commerce platform. Further, it faces easier year-over-year comparisons, which should cushion its top-line growth. 

The growing adoption of its POS (point of sale), Capital, and Markets offerings bode well for growth. Further, the expansion of existing products into new markets, strengthening of fulfillment, benefits from Deliverr acquisition, and partnerships with social media platforms will drive its merchant base. Shopify stock is trading cheap (trading at an enterprise value-to-sales multiple of 4.1, which is at a five-year low), which supports my bullish view. 

Nuvei

Nuvei (TSX:NVEI) is another high-quality tech stock I’ll happily own at current levels and hold forever. Notably, the Nuvei stock is down about 78% from its 52-week high, while its valuation is at an all-time low. 

The slowdown in e-commerce demand, weakness in the crypto space, and adverse currency movements weighed on its growth and stock price. However, Nuvei’s management remains upbeat and expects to deliver over 30% growth in volumes and revenues in the medium term. It continues to bring new alternative payment methods to its platform and is acquiring customers fast, which bodes well for growth. 

Also, its selective acquisitions, expansion in emerging markets, and entry into new verticals will likely support its growth. 

Docebo  

Docebo (TSX:DCBO) stock has corrected about 64% from its 52-week high, which is unwarranted given the ongoing momentum in its business. Despite the concerns about its growth in a post-pandemic world, Docebo has consistently delivered stellar performances, which is reflected through its strong annual recurring revenue (ARR) growth, growing enterprise customer base, and increase in deal size. 

Docebo’s ARR has grown at a CAGR of 66% from 2016. Meanwhile, it increased by 48% during the last reported quarter. Further, Docebo’s customer base increased to 3,106. Moreover, its average contract value has grown nearly four times since 2016. 

Overall, its fundamentals remain strong, which will likely support its growth. Meanwhile, its large addressable market, high customer retention, and accretive acquisitions will accelerate its growth and drive its stock price higher.

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 Nuvei Corporation and Shopify. The Motley Fool recommends Docebo Inc. The Motley Fool has a disclosure policy.

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 »