3 Top Growth Stocks to Buy in June

Are you looking for great growth stocks to buy this month? If so, Jamieson Wellness Inc. (TSX:JWEL) and two other stocks should be on your buying list.

| More on:
The Motley Fool

Are you looking for great growth stocks to buy this month? Below I’m presenting three stocks in three different sectors with strong growth perspectives, which you should buy now if you want to profit from their upside potential.

Jamieson Wellness Inc. (TSX:JWEL)

If you care about your health, you may know that sometimes food is not sufficient to provide your body with the vitamins and nutrients it needs to function well. This is where Jamieson Wellness can help you. This company develops, manufactures, and markets natural health products, including vitamins, minerals, and supplements. As the population is aging, the global supplements market is growing, which benefits Jamieson.

In the first quarter of 2018, the vitamin manufacturer’s revenue increased 8% to $70.1 million as compared to the first quarter of 2017.

Net income reached $4.6 million compared to a net loss of $21.7 million in the first quarter of 2017. Adjusted net income increased 164% to $5.8 million.

Earnings are estimated to grow at a rate of 23.3% next year. The stock’s forward P/E is only 9.1, so it’s cheap. Jamieson pays a quarterly dividend of $0.08 per share for a yield of 1.0%.

Since the IPO of the company on July 7, 2017, the stock has returned 46%.

Finning International Inc. (TSX:FTT)

Finning International is the world’s largest dealer of Caterpillar equipment. Finning is well diversified geographically: about 49% of its revenue comes from Canada, 34% from South America, and 17% from Britain and Ireland.

The industry in which Finning operates seems boring, but this company’s stock is not. The global economy is strengthening, which should benefit the resource sector. A higher demand for resources means that more equipment is required. In anticipation of the resource rebound, Finning’s stock has risen a great deal recently, returning 26% over one year.

The company reported revenue of $1.7 billion in the first quarter, up 19% from the same quarter last year.

Net income came in at $71 million or $0.42 per share, up 50% from a year earlier. Adjusted earnings per share jumped 42% to $0.39. Finning also hiked its quarterly dividend by 5.3% to $0.20 per share, which gives a yield of 2.4%.

A strong growth rate of 36.4% per year on average is estimated for Finning for the next five years. The stock is undervalued relative to its growth, as its PEG is only 0.5.

Goeasy Ltd. (TSX:GSY)

Many Canadians are moving out during the summer and therefore need furniture. This increase need for furniture is beneficial for Goeasy, a seller and financer of household goods.

This company operates through two segments: easyhome, which offers merchandise leasing of furniture, appliances, and electronics to consumers, and easyfinancial, which offers personal loans.

Goeasy is a high-growth, high-profitable business. In the first quarter of 2018, revenue was $114.8 million, up 22% from the first quarter of 2017. Loan originations increased 92%, reaching an all-time high of $202.4 million.

Net income jumped 7.8% to $11.1 million, while diluted EPS increased 5.5% to $0.77. The lender had a strong return of equity of 17.4% in the quarter.

Goeasy has a strong performance record, with a 15-year compound annual growth rate of return of 17.5%. The stock has kept rising fast recently, returning more than 40% over the last year.

The stock forward P/E is only 9.2, while the company’s earnings are expected to grow by 30% next year, so the stock is cheap relative to its potential future growth. Goeasy’s stock also rewards you with a quarterly dividend of $0.225 per share, which currently yields 1.8%.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Stephanie Bedard-Chateauneuf has no position in any of the stocks mentioned. Finning International is a recommendation of Stock Advisor Canada.

More on Dividend Stocks

Dividend Stocks

3 Dividend Stocks I’d Buy and Never Sell

Canadian National Railway (TSX:CNR)(NYSE:CNI) has many things going for it — the least of which is its history as an …

Read more »

Piggy bank next to a financial report
Dividend Stocks

TFSA Pension: 2 Top Stocks to Buy in a Self-Directed Retirement Fund

Canadian savers are using the TFSA to create their own retirement plan. Younger investors are building savings, while retirees are …

Read more »

Canadian Dollars
Dividend Stocks

Got $300? The 3 Best Passive-Income Stocks to Buy Now

A small but regular investment in top-quality dividend stocks could help you create a portfolio that will offer solid passive …

Read more »

Businessperson's Hand Putting Coin In Piggybank
Dividend Stocks

Top Stocks for Passive Income: How to Earn $366.75 Per Month Tax Free

Canadian pensioners and other investors focused on passive income have an opportunity to use their TFSA to hold top TSX …

Read more »

Payday ringed on a calendar
Dividend Stocks

2 Ways to Make $679 a Month in Passive Income

Passive income is defined as cash flow that’s enough to cover basic living expenses and is generated without any work. …

Read more »

Cogs turning against each other
Dividend Stocks

Boost Your Passive Income With These 3 Safe Dividend Stocks

With the inflation in the United States reaching a multi-decade high, Jerome Powell, the chairman of the Federal Reserve, has …

Read more »

money cash dividends
Dividend Stocks

3 Cheap Dividend Stocks That You Can Buy Under $30

The ongoing selloff provides long-term investors a chance to buy quality stocks at a lower price. Investors have seen a …

Read more »

Glass piggy bank
Dividend Stocks

RRSP Growth: 2 Top TSX Dividend Stocks to Own for Decades

The market pullback is giving RRSP investors a chance to buy some of Canada’s top dividend-growth stocks at reasonable prices. …

Read more »