The S&P/TSX Index appears poised to finish November as it started — above the 16,000-point mark. The index has been powered by a resurgent Canadian economy in 2017, along with the typically strong performance of Canadian bank stocks. Naturally, many are also talking about the surge in cannabis stocks mirroring the similar rapid rise in the latter half of 2016.
A recent OECD report revealed that Canada is plagued by individual debt; Canadians have the highest debt levels in the developed world. Investors should be cautious, but they should also be on the lookout for growth. Let’s look at three of the top stocks that are well positioned for huge growth into the next decade.
Great Canadian Gaming Corp. (TSX:GC) stock has climbed 21.4% in 2017 as of close on November 24. In a recent article, I’d discussed whether or not investors should look to buy the dips, as the company contends with a money-laundering controversy in some of its British Columbian locations.
As I’d stated in the article, it seems clear that there is little risk of the GTA bundle deal, which Great Canadian Gaming was awarded with in August, along with Brookfield Business Partners LP. In 2016, the three facilities that are a part of the bundle generated over $1 billion worth of gaming revenue. Great Canadian Gaming also hopes to make significant investments to bolster the locations, and there are plans for another casino in the Toronto area.
In its third-quarter results, Great Canadian Gaming posted a 5% increase in revenue to $159.6 million. Net earnings were flat in the third quarter at $26.9 million, but they have climbed 19% year to date to $71.4 million. The company is poised to post monster revenue in the aftermath of this deal. The deal is expected to be finalized in the first quarter of 2018.
BlackBerry Ltd. (TSX:BB)(NYSE:BB) stock has increased 47.4% in 2017 and 32% year over year. The company posted record software and services revenue as well as a record gross margin in the third quarter. I recently discussed why BlackBerry is a great buy in light of the data breaches at Uber, and Equifax Inc. BlackBerry is a leader in mobile encryption services and even launched its own cybersecurity consulting services in October.
The cybersecurity market is projected to be worth approximately $174 billion by 2022, according to global research firm Crystal Market Research. This registers the industry at a compound annual growth rate of 10.3% during the five-year period. Investors should not be ignoring the growth potential of this industry.
Jamieson Wellness Inc. (TSX:JWEL) stock has climbed 35% since its initial public offering in July 2017. It posted impressive results when it released its third-quarter earnings on November 9. Revenue was up 45% to $80.1 million, and adjusted net income surged 210.2% to $7.8 million.
The global dietary supplements market is expected to rise to $220.3 billion, according to Zion Market Research. This represents compound annual growth of 8.8% between 2017 and 2022. Jamieson Wellness is in a fantastic position to benefit from this fast-growing market.