Buying a stock that has dipped in price can be risky, since a lot of time, when the bears come out, a dip can quickly turn into a crash. Similarly, a stock that has a lot of positive momentum and has shown great returns could remain bullish for a long time.
And for that reason, buying when a stock price is rising could be a better strategy than buying on a dip, since there’s likely some optimism or good news behind the shares’ growth in the first place.
Below are three stocks that have grown significantly over the past three months that could still be great buys today.
Canada Goose Holdings Inc. (TSX: GOOS)(NYSE: GOOS) is coming off a terrific quarter and is also fresh off news that it would be expanding into China in an effort to extend its reach around the world. The company has a flourishing direct-to-consumer segment that will be helped significantly by a presence on the other side of the world.
The company’s focus on quality has resonated with its customers, and with a colder winter than normal this past year, sales have been even stronger, and that has propelled the stock to new heights. In three months, the share price has risen by more than 75%, with a lot of that happening after the company released its latest quarterly results.
Green Organic Dutchman Holdings Ltd. (TSX:TGOD) has been flaming hot since being listed on the TSX back in May, as its share price has risen more than 80% during that time. Although the company is very young and not generating positive cash flow from its operations, investors are bullish for the potential that the company has over the long term.
The cannabis stock recently announced that it entered an agreement that would see it license a proprietary technology for infusing cannabis into food and beverage products — a segment of the market that has been soaring in Colorado, where the sale of edible marijuana has been legalized. With the potential that exists in the market for edibles, it’s easy to see why investors would be very bullish on the stock.
Green Organic has already become one of the biggest pot stocks on the TSX in a short amount of time, and it’s likely going to continue to soar, as the industry continues to gain momentum.
As well as the two stocks above have done, MEG Energy Corp. (TSX: MEG) has seen even more impressive results over the past three months with its share price up over 90%. One of the hottest stocks on the TSX, MEG recently released a very strong quarter that showed revenues rising more than 30% year over year, while profits of $141 million were a huge improvement over the $2 million in earnings the company banked last year.
MEG also announced it would be expanding its Christina Lake project in northern Alberta with a $275 million investment, which would help increase production by 2020. Oil prices are stronger this year, and if that trend continues, MEG’s share price could continue to rise.
