Written by Jitendra Parashar at The Motley Fool Canada
The TSX . compound The benchmark index has cleared about 8.3% of its June value so far, extending its quarterly losses to date to more than 13%. Consistently high inflationary pressures and fears of a near-term recession are chasing investors and fueling the selling in the market. However, it is almost impossible for anyone to predict recessions and future market trends. That’s why no one can claim with certainty that the stock market will continue to crash in the coming months.
Invest $5000 in stocks amidst the market sell-off
While the ongoing market sell-off has wiped out billions of dollars from the market value of many companies, it may be an opportunity for new equity investors to enter the market to grow their fortunes in the long term. If you don’t have big piles of extra cash to invest in stocks now, that’s totally fine. It’s not a good idea to start your investment journey with less than $5,000 if you don’t want to regret later on not buying fundamentally strong stocks in a big deal. Let’s take a look at two of the best Canadian stocks to buy right now that look really cheap and can deliver excellent returns in the long run.
Massive growth stock to buy amid market correction
While the broader market sell-off began recently, the tech sector crash began months ago. This is why it makes sense for investors to buy some high-growth technology stocks with strong fundamentals amid this market correction. Lightspeed Trading (TSX: LSPD) (NYSE: LSPD) is a Montreal-based software company focused primarily on providing an innovative one-stop commerce platform for merchants. Its stock is down 82% in the past nine months to $29 a share.
In fiscal year 2022 (ending March), Lightspeed posted a strong 147% year-over-year (year-over-year) jump in its total revenue to $548.4 million. During the fiscal year, subscription revenue jumped 108% year over year, while its transaction-based revenue saw massive positive growth of around 218% over last year. As businesses around the world continue to reopen in the post-pandemic world, the demand for Lightspeed’s commerce platform is likely to increase. That’s why I expect this Canadian growth stock to continue to report solid sales growth, which should help its stock recover sharply.
Another stock with strong growth prospects
The second growth stock that I find worth buying amid the ongoing selling in the market is Black Berry (TSX: BB) (NYSE: BB). While the recent sales growth trend may not sound impressive, I expect BlackBerry’s financials to start growing at an exponential rate in the coming years. Let me explain why.
BlackBerry provides cybersecurity software solutions to organizations around the world. However, in the past few years, the technology company’s interest in developing advanced technological solutions for future cars has grown exponentially. The IVY platform under development has the potential to make it one of the leading suppliers for makers of electric and self-driving cars. The platform aims to enable automakers to securely collect real-time data from vehicle sensors and use it to provide better functionality and features to vehicle drivers and passengers.
Despite the strong fundamental outlook, BlackBerry stock has fallen more than 58% in the past year to $6.89 per share as the market sell-off continues. That’s why long-term investors may consider buying it now.
If you want to increase your hard-earned savings, this may be the perfect time to start investing in stocks as market sell-offs continue to push stocks lower. Investing $5000 or more in these basically strong stocks after a big correction could be a great strategy for long-term investors to grow their wealth quickly.
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Motley Fool recommends the Lightspeed trade. idiot contributor Jitendra Parashar He has no position in any of the mentioned shares.