Written by Amy Legate-Wolfe at The Motley Fool Canada
I know right now, it seems all but impossible for there to be a bull market in the future. The thing is, however, that after a bear market, after a recession, after any downturn in the market comes a bull market — one that could explode and offer huge opportunities for investors.
So, when that bull market comes, you’re going to want to be ready with three growth stocks on hand. These three growth stocks are likely to be the first to pop.
Shopify (TSX:SHOP) has already been popping over the last year. The company’s share price dropped, along with other tech stocks, with there being many issues the company has to cover. Since then, Shopify stock has brought in cash through the sales of assets, along with layoffs. And now, it’s looking to focus back on e-commerce.
That’s right on time, considering that the biggest e-commerce event of the year is around the corner. Black Friday to Cyber Monday has historically been enormous for the stock. So, even before a bull market is on the way, Shopify stock could see shares grow even further.
For now, Shopify stock still surged 21% after reporting earnings this week. This alone shows that investors are still willing to invest, and it could be that we’re on the verge of a bull market. Net income soared to US$718 million in the third quarter, as the company saw the benefits of its strategic moves. That’s compared to a loss the year before. So, certainly add this to your list of growth stocks to watch.
Another tech stock that saw a major increase in share price this week was Lightspeed Commerce (TSX:LSPD). Shares of Lightspeed stock jumped 17% in early trading, as the tech stock saw revenue increase by 25% compared to the year before.
This had more to do with just cuts, however. Lightspeed stock made huge acquisitions back during the pandemic that are now fully up and running. These acquisitions have brought the e-commerce company to a whole new level. Yet those costs were adding up over the last few years.
Now, there is a smaller loss of US$42.5 million compared to US$79.9 million the year before. That’s almost half the amount. Meanwhile, revenue rose to US$230.3 million compared to US$183.7 million at the same time last year. Now, it expects to achieve revenue between US$232 million and US$237 million for the third quarter.
Furthermore, Lightspeed stock expects to achieve revenue for fiscal 2024 between US$890 million and US$905 million. That would mean it would achieve over $1 billion in revenue in Canadian dollars! An enormous feat for this among growth stocks.
One of the best opportunities might still be Topicus.com (TSXV:TOI) among growth stocks. And that’s not just for more growth but sustained growth. Topicus stock is a spinoff of Constellation Software, which has a long history of growth through acquiring software companies. Topicus stock is the same, but it’s active in Europe.
Now, Topicus stock has already exploded in the last year, with shares up 32% in the last year alone. What’s more, earnings are due out after market close. Shares are already starting to climb, as investors look forward to more growth from this new company.
Basically, by buying Topicus stock, it would be like getting in on the ground floor of Constellation stock — a company that’s steadily risen in the last decade or so. So, this is certainly another growth stock to consider ahead of a bull market.
The post A Bull Market Is Coming: 3 Growth Stocks That Could Thrive appeared first on The Motley Fool Canada.
Before you consider Lightspeed, you'll want to hear this.
Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in October 2023... and Lightspeed wasn't on the list.
The online investing service they've run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 25 percentage points. And right now, they think there are 5 stocks that are better buys.
See the 5 Stocks * Returns as of 10/10/23
Fool contributor Amy Legate-Wolfe has positions in Lightspeed Commerce and Shopify. The Motley Fool has positions in and recommends Shopify and Topicus.com. The Motley Fool recommends Constellation Software and Lightspeed Commerce. The Motley Fool has a disclosure policy.