Regardless of the rising COVID-19 circumstances, the Canadian benchmark index, the S&P/TSX Composite Index, has elevated by 16.6% for this 12 months. Buyers’ optimism over the reopening of the economic system, widespread vaccination, and bettering company earnings have pushed the index greater. Amid improved buyers’ optimism, listed here are 4 high Canadian growth stocks that you can purchase this month to earn superior returns.
Since going public in September, Nuvei (TSX:NVEI) has delivered a powerful return of round 125%. The corporate’s sturdy first-quarter efficiency, strategic acquisitions, and rising demand for digital fee options amid a secular shift in the direction of an omnichannel promoting mannequin have pushed the corporate’s inventory value greater.
The corporate not too long ago acquired Mazooma Technical Providers, which supplied prompt bank-to-bank funds for the U.S. on-line gaming and sports activities betting market. In the meantime, Nuvei plans to develop the service to different verticals. Amid the rising cryptocurrency market, the corporate is specializing in buying Simplex, a fiat-cryptocurrency gateway that connects market individuals. Together with these acquisitions, the rising reputation of digital fee options affords glorious development prospects for Nuvei. So, I am bullish on the company.
After delivering stable returns of 26.6% final 12 months, Magna Worldwide (TSX:MG)(NYSE:MGA) has continued its uptrend, with its inventory value rising shut to fifteen% this 12 months. In the meantime, I count on the momentum to proceed, given its high-growth prospects. Final month, the corporate introduced to have signed a definitive settlement to accumulate Veoneer, which may strengthen its superior driver-assistance methods enterprise.
Final month, the corporate established a three way partnership with LG Electronics, LG Magna e-Powertrain, which is able to produce e-motors, inverters, and e-drive methods. The corporate has additionally partnered with the expertise startup Uhnder to launch ICON Radar, a complicated driver-assistance expertise, subsequent 12 months.
Additional, the corporate additionally expects a major shift in its manufacturing in the direction of EV parts amid rising demand for EV automobiles. So, Magna Worldwide’s development prospects look wholesome.
WELL Well being
WELL Well being Applied sciences (TSX:WELL) is likely one of the high performers over the previous couple of years, with its inventory value appreciating round 4,500% since going public in June 2017. The beneficial business developments, sturdy monetary efficiency, and accretive acquisitions have boosted the corporate’s inventory value. Given its accessibility and comfort, the demand for telehealthcare providers is rising and will additionally maintain within the post-pandemic interval.
In the meantime, the corporate has expanded its geographical footprint within the profitable U.S. healthcare market with the acquisition of CRH Medical. Additional, CRH may publish revenues and EBITDA of US$150 million and US$60 million in 2021, boosting WELL Well being’s financials. Moreover, the corporate has additionally not too long ago acquired ExecHealth, Docs Providers Group, and MyHealth Companions. Regardless of its wholesome development prospects, the corporate at the moment trades over 25% decrease from its February highs. So, I imagine buyers ought to make the most of the correction to build up the inventory to earn superior returns.
My closing decide can be Tilray (TSX:TLRY)(NASDAQ:TLRY), which had reported a stable fourth-quarter efficiency final month. Its high line grew by 25%, whereas its web earnings got here in at $33.6 million in comparison with a web lack of $84.3 million within the earlier 12 months’s quarter. It additionally posted a optimistic money flows of $3.3 million, which is encouraging.
In the meantime, the corporate is increasing its product choices to boost its market share from 16% to 30% within the Canadian retail house by 2024. It has additionally strengthened its choices within the medical hashish sector by not too long ago launching a brand new model, Symbios. With its sturdy manufacturing and provide chain capabilities within the European Union, the corporate appears to enterprise into new markets, resembling Poland, Italy, the U.Okay., France, the Netherlands, and Israel.
Given its money and money equivalents of $488 million on the finish of the fourth quarter, Tilray is properly outfitted to fund its development prospects. So, given its wholesome development prospects and increasing hashish market, I count on Tilray to ship superior returns.
This text represents the opinion of the author, who could disagree with the “official” suggestion place of a Motley Idiot premium service or advisor. We’re Motley! Questioning an investing thesis — even certainly one of our personal — helps us all suppose critically about investing and make choices that assist us change into smarter, happier, and richer, so we typically publish articles that is probably not in keeping with suggestions, rankings or different content material.
The Motley Idiot recommends Magna Int’l. Idiot contributor Rajiv Nanjapla has no place in any of the shares talked about.