Millennials shouldn’t let a bit of market volatility stop them from putting their latest TFSA contribution to work. Indeed, things are looking up heading into 2024. But that’s exactly why investors may wish to invest more cautiously rather than seek to enter some of the tech trades that have grown incredibly crowded in recent quarters.
Yes, investing themes like AI hold potential, but what’s the value in chasing what everybody else has driven up the price of? If you’re going to be late to the ball, there’s a good chance you won’t be able to fill your cup once the punch bowl gets taken away and the party comes to a halt. That’s not to say artificial intelligence stocks are bound to take one straight to the chin this year, but I see upside potential in some of the growth plays millennials may have outside of their radars.
Without further ado, let’s check out three growth stocks that I think could gain nicely from here, even as markets wobbled in the first innings of this new year.
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Waste Connections
Waste Connections (TSX:WCN) is in the dirty business of waste collection. As it turns out, waste management has been a very profitable business for Waste Connections over the years. With one of the widest moats in the business world and the means to continue growing sustainably even through the harshest environments (waste is produced in dire economic times as well, folks!), it’s not a mystery as to why shares of WCN have been such a smooth and steady ride over the past 10 years.
Over the 10-year span, shares have rocketed more than 455%. Over the next 10 years, I think more of the same could be in the cards, making Waste Connections one of the best low-tech growth heroes of our time.
Recently, the firm bought just north of $1 billion in assets from Secure Energy Services. Such moves could provide a jolt to growth.
Shopify
Up next, we have the great Shopify (TSX:SHOP), which I’m not yet ready to turn bearish on, even as analysts put their thumbs down over the recent bout of mutliple expansion that the stock experienced over the past year. Now, I hate buying stocks that have more than doubled in the past year (SHOP stock is up 110% since a year ago). However, Shopify is one of the firms that may be best left alone for many years at a time.
Will it crash at certain times along with the tech sector?
It’s definitely possible. However, despite the big ups and downs (booms and busts), Shopify has the technology that can power next-level top-line growth. Even amid high rates, growth can still do the talking for the company. In five years, my guess is rates will be far lower than where they sit today, and Shopify may be back to its extremely high growth days.
In short, it’s tempting to trade Shopify stock when worries set in about the economy, and valuation leads to higher expectations on Bay Street. In any case, I’d much rather hang onto shares than ditch them, as Shopify could grow considerably over the next decade on the back of its legendary founder-led chief executive officer, Mr. Tobias Lutke.
