× InvestingStocksToolsClubsVideosPrivacy PolicyTerms And Conditions
Subscribe To Our Newsletter

3 High-Growth TSX Stocks to Buy Amid the Ongoing Weakness



potted green plant grows up in arrow shape

It’s certainly not the market for growth stocks these days. Many tech names that were flying high last year have lost more than half of their value in the last few months. Fast-rising interest rates have notably weighed on their growth outlook.

However, some of them have now come to an attractive level, and the decline from here looks limited. Thus, discerned investors should start accumulating some of these TSX stocks at current levels.

The Fed’s hawkish stance could continue to weigh on these names for the next few months. However, from the current valuation perspective and considering the fall so far, these TSX stocks look attractive for the long term.


Since last September, Canada’s fast-growing consumer lender stock goeasy (TSX:GSY) has declined 50%.

goeasy is a $1.7 billion consumer lender that caters to a large addressable market. It primarily lends to non-prime borrowers that traditional financial institutions do not cater to.

The lender saw increased loan originations and improved repayment patterns amid normalizing economic growth in the last few quarters.

Despite being in a risky industry, goeasy has shown outstanding financial growth in the last two decades. Its revenues and net income grew by 12% and 36% CAGR in the last 10 years.

Driven by a growing product base, increased cross-selling opportunities, and expanded distribution channels, goeasy will see meaningful shareholder value creation in the long term.

GSY stock is trading 11 times its earnings and looks attractive from the valuation perspective. Once the broader market tumult calms, GSY stock should reverse and climb towards its last year’s highs.


If 80% correction is not a good entry point for a stock like Shopify (TSX:SHOP)(NYSE:SHOP), then what is?

Rising rates, margin compression, and a weaker growth outlook brought the stock to its 20-month lows. However, the management is confident of the above-average operational and financial growth in the long term.

For the first quarter of 2022, Shopify reported total revenues of $1.2 billion against $988 million in the same quarter of 2021. However, its bottom line tumbled during the quarter, despite higher revenues, which accelerated the drop further.

However, higher spending on e-commerce, product expansion, and its growing market share in a large addressable market will likely bode well for Shopify’s earnings growth. As earlier stated, SHOP stock should change the course once volatility in the broader market subsides.

Birchcliff Energy

Birchcliff Energy (TSX:BIR) is one strong name from the energy sector for long-term investors. Unlike the other two, BIR stock is rallying and has gained 190% since last year.

The company is projected to turn debt-free by the end of 2022, thanks to its superior free cash flow growth. It also doubled its quarterly dividend to $0.02 per share after a record performance in Q1 2022. Though the yield is trivial at the moment, Birchcliff offers striking total-return potential.

Its strong balance sheet, robust earnings growth outlook, and higher natural gas prices should play well for BIR stock and its investors.

The post 3 High-Growth TSX Stocks to Buy Amid the Ongoing Weakness appeared first on The Motley Fool Canada.

Should You Invest $1,000 In Shopify?

Before you consider Shopify, we think you’ll want to hear this.

Our nearly S&P/TSX market doubling Stock Advisor Canada team just released their top 10 starter stocks for 2022 that we believe could be a springboard for any portfolio.

Want to see if Shopify made our list? Get started with Stock Advisor Canada today to receive all 10 of our starter stocks, a fully stocked treasure trove of industry reports, two brand-new stock recommendations every month, and much more.

See the 10 Stocks
* Returns as of 4/14/22

setButtonColorDefaults("#5FA85D", 'background', '#5FA85D'); setButtonColorDefaults("#43A24A", 'border-color', '#43A24A'); setButtonColorDefaults("#fff", 'color', '#fff'); })()

More reading

  • Canadian Tech Stocks at 60-90% Discount: 5 Top Deals for Today
  • 3 Cheap Canadian Stocks Trading at 52-Week Lows
  • 5 TSX Stocks With Strong Potential to Make You Rich by Retirement
  • 4 Canadian Stocks That Could Increase Dividends by at Least 5%
  • 2 Beaten-Down Growth Stocks to Buy During This Pullback

The Motley Fool has positions in and recommends Shopify. Fool contributor Vineet Kulkarni has no position in any of the stocks mentioned.



By: Vineet Kulkarni
Title: 3 High-Growth TSX Stocks to Buy Amid the Ongoing Weakness
Sourced From: www.fool.ca/2022/05/12/3-high-growth-tsx-stocks-to-buy-amid-the-ongoing-weakness/
Published Date: Thu, 12 May 2022 19:00:00 +0000

Read More