With the plunging Canadian dollar, it’s become quite painful for Canadians to make the swap for greenbacks.
Fortunately, there are many red-hot growth stocks right here on the TSX that even our friends south of the border have been talking about!
Jim Cramer’s Mad Money has been talking about Canadian stocks ad nauseum of late, and it’s not just about pot. FANG, an acronym for four of the hottest U.S. tech stocks coined by Cramer, pales in comparison to the Canadian stocks that I’ve compiled under the acronym CASE.
The valuations of many these names may be absurd, however, so prudent investors should proceed with caution, since the stocks may be too hot to handle for the average investor who’s not suited for aggressive growth. Although some of the names may not be timely buys today, they’re definitely worthy of adding to your watch list. There are actually seven stocks within the CASE basket, so the acronym should actually be called CCAASSE, but for simplicity’s sake, let’s just stick with the CASE acronym.
Without further ado, meet the CASE stocks:
Canopy Growth Corp. (TSX:WEED)(TSX:CGC)
Canada’s number one pot stock has returned 400% over the past year. There are a tonne of reasons why Canopy could continue its surge higher, as it capitalizes on the profound cannabis supply shortage that’ll stick around at least until 2020 when the producers have a chance to catch up to the sky-high demands of consumers.
Not only is Canopy arguably the safest pot stock to bet on, but it’s got impeccable international relationships built early on in the nascent industry, along with a solid portfolio of brands that may have the opportunity to spread their wings at some point down the road.
Here’s a stock that’s grabbed the attention of growth investors of late after clocking in a quarter for the record books last week. This Canadian-born growth juggernaut and its incredibly intelligent CEO Dani Reiss are all about growing revenues through the roof in a very profitable fashion!
The high-margin, high-growth business has become the talk of the town — not just in Canada; our U.S. friends have been getting high off the Goose as well!
The stock is now up over 43% in just two trading sessions and with a DTC ramp-up on the horizon, there are many reasons why the Goose may be a marvelous long-term holding for an aggressive growth investor who’s not wary of the frothy valuation.
Aphria Inc. (TSX:APH)
Aphria is the third-largest member of the Big Three Canadian producers.
The stock is down around 50% from all-time highs but is still up 115% over the past year. As one of the most efficient producers, investors may be betting that the company will make up for lost time as it catches up to Canopy, the current frontrunner.
Aurora Cannabis Inc. (TSX:ACB)
The second-biggest Canadian pot stock has been absolutely punished — deservedly so after its shareholder-dilutive acquisition spree.
Down 40% from all-time highs, this name, like Aphria, could roar loud after doubling down on acquisitions. Be warned though, as Aurora appears to be the riskiest Big Three producer given its aggressive early-stage roll-up strategy.
Shopify shook off Andrew Left’s short attack and is flying through the roof.
The rapidly emerging e-commerce player is one of Canada’s few high-flying tech stocks. It’s been picking up a huge amount of momentum of late.
Stars is actually the only stock in CASE with a reasonable valuation!
This company has been going all-in on sports betting, which, like cannabis, is gradually shedding its taboo and is slated to take-off as a brand-new monopolistic, competitive market structure, where Stars could be one of the major forces.
Emerald Health Therapeutics Inc. (TSXV:EMH)
Emerald is another pot stock that’s been picking up traction on the TSXV over the past year. It’s down 60% from all-time highs, but up 217% over the past year.
The producer is also an intriguing medicinal bet, which may make it a compelling takeover target as the pot industry further consolidates.
Stay hungry. Stay Foolish.
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 Joey Frenette has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of Shopify and SHOPIFY INC. Shopify is a recommendation of Stock Advisor Canada.