2 TSX That Could Break Through the Roof in 2023

For the past year or two, the stock market hasn’t been a very nice place to be. Many stocks saw their value plummet. However, over the past few months, things have started to recover. Stocks across all sectors have slowly been jumping up in price, giving investors a bit of hope that things will start to get better soon. With that said, it could only be a matter of time before certain stocks break through the roof in 2023. In this article, I discuss two TSX stocks that I think could do just that.

This blue-chip stock could still grow at a fast rate

Constellation Software (TSX:CSU) is the first stock that I think could break through the roof in 2023. For those that are unfamiliar, Constellation Software is a tech conglomerate. It acquires vertical market software (VMS) businesses. Constellation Software also provides the coaching and resources needed to transform those acquisitions into exceptional business units. Since its founding, Constellation Software has been able to perfect its strategy, helping it find massive success for nearly three decades.

Still led by its founder, Mark Leonard, I believe Constellation Software’s days of beating the market aren’t behind it. Leonard continues dedicated to growing this company and hasn’t been afraid to adapt his strategy to achieve his desired goals. This includes changing Constellation Software’s acquisition strategy from a largely cash-based one to a strategy that incorporates company spinoffs.

After a relatively weak year in 2022, Constellation Software stock already seems poised to make up for that lost time. Year to date, this stock has gained about 13%. I believe this is just the start of what investors could be seeing in terms of returns this year, as the market has just started to turn around for the better. Listed among other Canadian blue-chip companies, Constellation Software offers investors a vey attractive risk to reward profile.

Now is the time to invest in this renewable utilities company

Brookfield Renewable (TSX:BEP.UN) is the second company that investors should keep an eye on this year. This company is one of the largest producers of renewable utilities in the world. As of this writing, Brookfield Renewable operates a diversified portfolio of assets with a generation capacity of 25 gigawatts (GW). The company also boasts an impressive development pipeline with an estimated future generation capacity of 110 GW.

Brookfield Renewable is an interesting company to invest in because it should be of interest to growth and dividend investors alike. In terms of growth, there’s no denying that the renewable utility space continues to grow. As demand in those services continue to increase, Brookfield Renewable should see a similar growth in its business. In terms of its dividend, Brookfield Renewable excels. It’s listed as a Canadian Dividend Aristocrat, after having increased its distribution at a compound annual growth rate of 6% over the past 11 years.

Year to date, this stock has gained nearly 16%. I think this is just the beginning of what’ll be a great year for Brookfield Renewable stock.

The post <strong>2 TSX That Could Break Through the Roof in 2023</strong> appeared first on The Motley Fool Canada.

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Fool contributor Jed Lloren has positions in Brookfield Renewable Partners and Constellation Software. The Motley Fool recommends Brookfield Renewable Partners and Constellation Software. The Motley Fool has a disclosure policy.