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2 Non-Tech Stocks That Have Seen Sales Growth of Over 20%

Investing in dividend stocks is a safe way to collect income and earn returns, but growth stocks, by and large, offer the most upside through capital appreciation, and that is where you can earn significantly better results. I have two stocks listed below that have shown over 20% sales growth in the past fiscal year, and both could be great investments to purchase today.

Stantec Inc. (TSX:STN)(NYSE:STN) provides its customers with construction and consulting services related to infrastructure. In the company’s most recent fiscal year, it posted revenues of just under $3.1 billion, which were up 30% from the year before. In three years, Stantec has seen sales grow by almost 70%, and in the company’s second quarter, it continued to see strong sales growth with revenues up 14% year over year. With sales across the world, Stantec is well diversified. In its last quarter, over 15% of the company’s consulting revenue came from outside North America.

In the past year, the company’s stock price has increased 9%, while in five years, the share price has doubled. The stock currently trades at a multiple of over 33 times its earnings, while its competitor Aecon Group Inc trades at a multiple of just 31.  Stantec’s stock price may be a little expensive, but you have to expect to a pay premium when companies are exhibiting lots of growth potential. The infrastructure business is always growing as maintenance, repairs, and upgrades will bring lots of opportunities for Stantec, and by having operations in many parts of the world, the company is not limiting itself to one economy.

Aritzia Inc.  (TSX:ATZ) is a fashion retailer specializing in women’s apparel. In the company’s most recent fiscal year, it posted revenues of $667 million, which were up 23% from 2015, and since 2014 sales have increased over 77%. In its latest quarter, the company continued to see strong sales growth with $145 million in revenue for Q1, which is up 15% year over year.

The company has a strong brand image in Canada, where it makes up about 75% of its sales, with the remainder coming from the United States. The company’s boutique model allows it to select opportunistic locations rather than just opening as many stores as it can, like a fast-food restaurant or big-box retailer. With just 61 stores in Canada and 20 in the U.S., there are plenty of opportunities for Aritzia to continue its expansion. The company prides itself in having its shops located in “prime” locations in North America, which is one way it separates itself out from a typical retailer you can find in any city.

Unfortunately, despite its strong growth, the company’s stock price has dropped over 27% since it listed on the TSX almost a year ago. The company’s earnings per share are currently in the negative, but the last two quarters have been profitable, as Aritzia continues to find ways to be more cost efficient.

The stock currently trades at 6.5 times its book value. It might be a bit expensive for some investors. However, in the past month, the stock has been flat, so it may have found some stability and support at over $12.

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Fool contributor David Jagielski has no position in any stocks mentioned.

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