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As the market sold off this year, many savvy investors wanted to take advantage of the opportunity to buy high-quality Canadian stocks. But while much of the investor’s focus is on finding the best value stocks on the TSX, looking for the highest growth stocks to buy offers much more long-term potential.
When you find high-quality growth stocks with years of growth potential, these investments can offer big gains. On the other hand, stocks that trade at deep discounts but don’t offer much growth have potential, as they return to fair value, but don’t offer anywhere near the long-term potential of high-quality growth stocks.
Moreover, many of these high-quality growth stocks may not be the cheapest stocks on the market, but they still offer value in today’s environment.
So if you’re looking to buy the best stocks in this environment, here are four TSX stocks you can buy and hold forever.
Shopify is one of the best long-term growth stocks to buy on TSX
E-commerce is an industry that has already experienced significant growth. However, as popular as e-commerce is, there is still a lot of room for growth.
That’s why Shopify (TSX:SHOP), one of the leaders in the space, continues to be one of the best growth stocks you can buy on the TSX.
Investors can buy Shopify today with much more confidence. After selling off throughout the year mainly due to the market and economic environment, Shopify now looks like it has bottomed out.
It continues to grow at a remarkable pace. In addition to analysts expecting it to increase its revenue by 19% this year, sales are expected to increase by more than 21% next year, although many expect a recession.
Today it trades at a price-to-sales ratio of just 7.4 times. That’s below a low of 5.4 times, but still well below the three-year average of 27.9 times.
Therefore, while one of TSX’s best growth stocks is trading at such a compelling valuation, it is certainly one of the best investments to buy now.
Green energy stocks offer tons of long-term potential
Another stock I would buy now and plan to hold forever is a high quality green energy stock such as Northland Power (TSX:NPI).
It’s no secret that the world needs to make significant changes to slow down the effects of climate change. And one of the best ways to do that is by increasing our reliance on renewable energy.
Because of this, these stocks have a ton of headwinds in the coming years, making them some of the best stocks you can buy today.
In particular, Northland has shown over the years what high-quality growth can be in the space. In addition to having 2,598 megawatts of net generating capacity in operation, Northland already has another 1,958 megawatts, or more than 75% of its current capacity, either under construction or in advanced development.
Therefore, with such a huge upside runway and the stock currently trading more than 20% off its peak, it is one of the best TSX growth stocks to buy now.
Defensive growth stocks are ideal in this environment
Another great strategy for investors as we head into a very uncertain 2023 is to find high-quality growth stocks that also offer defensive qualities. That’s why they’re two of the best growth stocks you can buy on TSX today Jamieson Wellness (TSX:JVEL) and Brookfield Infrastructure Partners (TSKS:BIP.UN).
Jamieson is an amazing business that consistently finds organic growth and has also proven to make attractive acquisitions. It’s a vitamin and supplement business that’s very defensive because of the many essential products it sells.
Brookfield, however, owns a portfolio of core infrastructure assets that are diversified across the globe. So while it operates as a growth company and is constantly looking to recycle capital and make new investments, the core of its business generates highly resilient income.
These defensive qualities of both stocks not only make them ideal for the current environment, but also make them one of the best TSX stocks to buy and hold forever.
If you have some cash to invest today, Brookfield and Jamieson are some of the first stocks to consider.
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