2 Top TSX Tech Growth Stocks for Long-Term Investors to Buy Right Now

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While many investors may buy into the “sell in May and go away” mantra, now may be the best time to consider growth stocks in this environment. Indeed, when everyone is selling is the best time to be buying.

For those looking at high-growth plays on the TSX, these two are among the top choices every investor ought to consider.

Constellation Software

Indeed, Constellation Software (TSX:CSU) is an incredible growth story. The company’s track record of growth is downright impressive. Over the past five years, Constellation’s share price has more than tripled. Over the past 10 years, the company has been a 30-bagger.

Indeed, few stocks can match this sort of long-term outperformance.

How has Constellation done this?

Well, the company’s growth-by-acquisition strategy has worked to perfection. Constellation has followed a formula that works. By buying smaller software players in a fragmented sector, Constellation has been able to boost its aggregate return over time. These small-cap companies get access to deep pockets willing to invest in their underlying technologies. And Constellation (and its investors) get access to the long-term cash flow growth upside.

Constellation’s track record of more than 500 deals has been stellar. Given the fact that there continue to be thousands of similar acquisitions opportunities out there, the potential growth for this stock is limitless. Thus, investors who have believed in Constellation’s management team thus far shouldn’t give up now.

Constellation stays ahead of its competitors in the game by cherry-picking the best, adding to its diverse portfolio. The company’s increased its earnings at an incredible CAGR of 16% over the past four years. This fact alone says enough about the long-term growth potential of this gem.

Shopify

Foreign investors looking for growth in Canada often gravitate toward Shopify (TSX:SHOP)(NYSE:SHOP). And for good reason.

Shopify is one of the most visible growth companies in Canada. The company continues to beat increasingly difficult growth expectations, each and every quarter. Despite concerns about growth potentially slowing, Shopify’s shown an amazing ability to step on the gas of late. Growth investors like that.

The company’s diverse product offering appeals to investors looking for SaaS-like revenue streams. Shopify’s core platform allows small- and medium-sized businesses an avenue to migrate toward e-commerce. Given the transition we’re seeing in retail today, that’s a massive long-term growth catalyst that can’t be ignored.

Shopify’s recent earnings results cement the ownership thesis of this stock. The company once again blew away expectations and provided a larger beat than the market expected. That says something today.

Like these top growth picks? Here are a few more to consider today:

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More reading

  • 2 Top Growth Stocks That Are Part of Cathie Wood’s Portfolio
  • Here Are 3 Top TSX Stocks to Buy in May 2021
  • 3 Top Canadian Stocks to Buy Right Now
  • 2 TSX Tech Stocks That Are Beating Amazon at Its Own Game
  • Growth Investors: 3 Top Stocks to Buy With $3,000 in May 2021

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Constellation Software, Shopify, and Shopify.

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