After a strong start to the year, the S&P/TSX Composite Index dipped for around a week before stabilizing again. As of this writing, the Canadian benchmark index is up by almost 4% year to date. While the economic uncertainty still exists, growth-seeking investors might have an opportunity to invest in growth stocks while they still trade for significant discounts.
Technology stocks have the reputation of delivering exceptional wealth growth. If you have capital to invest and are not worried about taking risks, here are three tech stocks to consider right now.
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Shopify
Shopify (TSX:SHOP) made waves when it came to the stock market. After rapidly rising to become the largest TSX stock by market capitalization in a few years, the tech sector selloff saw its valuation decline significantly. The $69.82 billion market capitalization multinational e-commerce company headquartered in Ottawa is one of the largest companies operating in the e-commerce space.
Its enterprise partnership network puts it in an excellent position to benefit merchants while fueling its own success. With its fourth-quarter (Q4) fiscal 2022 earnings reporting a 26% year-over-year growth in revenue, things are improving for the business. As of this writing, Shopify stock trades for $55.43 per share. Down by 41.58% from its 52-week high, it could be a steal at current levels.
Constellation Software
Constellation Software (TSX:CSU) is an exception among growth and tech stocks. It is a tech stock that presents itself as a safer bet than most other tech stocks. Since its initial public offering (IPO) in 2006, it has returned over 12,560% without including its dividend payouts.
Boasting a compound annual growth rate of over 33%, Constellation Software is in the business of acquiring tech firms, bringing them under its banner, and fueling their growth.
While Constellation Software stock also declined in 2022 with the rest of the tech sector, it has recovered to better valuations. As of this writing, CSU stock trades for $2,317.58 per share, down by almost 6% from its all-time high. While the time to pick up its shares at an unbelievable discount has passed, it can be an excellent buy right now for long-term wealth growth.
Open Text
Open Text (TSX:OTEX) is a $12.55 billion market capitalization Canadian company developing and selling enterprise information management software. Headquartered in Waterloo, it became Canada’s fourth-largest software company in 2022. Its cloud-native solutions through an integrated and flexible information management platform.
Boasting stellar earnings, it is one of the top growth stocks to consider right now. Its December 31, 2022-ending quarter saw Open Text stock increase its total revenue by 2.4% and annual recurring revenue by 3.6% compared to Q2 fiscal 2022.
The highlight of the quarter was a remarkable 192.66% growth year over year. As of this writing, Open Text stock trades for $46.40%. Down by 32% from its August 2021 all-time high, it is too cheap for growth investors to ignore right now.
Foolish takeaway
Stock market investing is inherently risky, especially during recessionary environments. If you have a well-balanced portfolio and can afford to take a few risks, allocating $1,000 to the right growth stocks can be an excellent way to grow your wealth. Since they carry high risk besides the high-reward potential, be sure not to invest more than you can afford to lose in growth stocks.
