The Top 5 Overlooked High-Growth Stocks With Healthy Balance Sheets

Lithium Americas Corp. (TSX:LAC)(NYSE:LAC) tops a list of the highest-growth stocks on the TSX. From gold to fuel cells, which of these stocks is a buy?

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Today’s calculator-worthy good news is that there are some healthy high-growth stocks on the TSX. We’ve singled out just five of them, and you’ll find them ranked below, organized by a combined weighting of healthy balance sheets and future prospects.

From lithium and gold to fuel cells and funeral services, these are some of the most ambitious stocks on the Canadian market. There are no dividends; there’s no past performance or value analysis — just growth and balance sheet health. While not all of these are a buy for every growth investor, they’re all of interest to TSX index observers and fans of capital gains.

Without any further preamble, let’s take a look at number five on the list and count down to the highest-growth stock with a healthy balance sheet currently trading on the TSX.

5. SEMAFO Inc. (TSX:SMF)

If West African gold is your kind of thing, you might be interested in SEMAFO, one of Canada’s highest-growth gold stocks. SEMAFO is expecting a massive annual growth in earnings of 78.8%. It’s fairly good value, too, with a PEG of 0.7 times growth, and a price to book ratio of 1.3 times book value. Health-wise, its level of physical assets is what places this stock at the number five spot.

4. Ballard Power Systems Inc. (TSX: BLDP)(NASDAQ: BLDP)

A big player in the fuel cell industry, Ballard Power Systems is a world leader in proton exchange membrane products. The demand in this market is so high that Ballard Power Systems is looking at a huge annual earnings growth of 72%. It has a low level of debt (5.7%), making this a solid play for anyone looking for a high-growth Canadian tech stock.

3. Park Lawn Corp. (TSX: PLC)

Park Lawn is a solid play if you want to expose yourself to the funeral sector, with a projected 69.3% rise in annual earnings. While value was not one of the factors used for this list, it’s worth pointing out that Park Lawn is currently discounted by 24% of its future cash flow value. A dividend payer to boot, you can expect a 1.92% yield, though the main draw of this stock is the potential for large capital gains.

2. Guyana Goldfields Inc. (TSX:GUY)

With an expected growth in annual earnings of 38.6%, Guyana Goldfields is one of the sturdiest high-growth gold stocks on the TSX. If you’d been thinking of investing in gold, this stock has the potential to grow your investment in the coming months. It’s trading at a 13% discount, making it worth the buy. In terms of its balance sheet, it does have a fair amount of physical assets — typical for a gold stock — but this is balanced by low levels of debt (14.2%).

1. Lithium Americas Corp. (TSX: LAC)(NYSE: LAC)

Lithium Americas is big into lithium, with two massive projects in Nevada and Argentina. Lithium Americas is a solid long-term play and could multiply your investment down the line. A projected 22.6% growth in annual earnings plus a very low level of debt (only 0.9%) make this a solid growth investment. In terms of growth prospects correlated with health indicators, this stock is our winner.

The bottom line

If you’re the gambling type, any of these five high-growth stocks could present an opportunity for you to cash in down the road. Backed up with low-risk balance sheets, they’re well placed to deliver the goods where growth is concerned. Go for Lithium Americas for exposure to commodities and a proxy tech stock to boot, while Park Lawn is a good value high-growth stock in an overlooked sector. Take your pick of the gold stocks or add Ballard Power Systems for a super-charged tech stock.

Fool contributor Victoria Hetherington has no position in any of the stocks mentioned.

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