Volatility has returned to global markets, and this has some investors growing anxious. The Turkish lira crisis has some analysts calling for a prolonged pullback, while others anticipate that global markets will be able to overcome this development without much fanfare.
We are fast entering the final months of 2018, and investors may be in the midst of re-orienting their portfolios. Rather than retreat to the sidelines or focus on income, investors should look to maximize growth as we approach the late stages of one of the longest bull markets in history. Let’s look at five premier growth stocks to scoop up before the fall.
Kinaxis stock has climbed nearly 30% in 2018 as of close on August 16. Shares are up over 650% since its initial public offering in June 2014. It posted very solid results in the second quarter, as gross profit climbed 20% year over year to $27.5 million and cash from operating activities increased 23% to $9.3 million. Kinaxis continues to make progress in fine tuning its RapidResponse software and has added a number of top-tier clients in 2018. This is a fantastic tech stock to hold heading into the next decade.
Cannabis stocks were the lone bright spot over the past week. Canopy Growth stock surged over 30% on the same day it was announced that Constellation Brands would pour $5 billion into the company. This is a huge vote of confidence ahead of recreational legalization in October. Canopy has established itself as the most reliable producer ahead of legalization and has ample inventory to meet the surge in demand. The potential of this industry should prevent investors from getting cold feet due to its high valuation.
Canada Goose stock has slipped nearly $25 since reaching all-time highs in mid-June. This surge followed a fantastic full-year fiscal 2018 report that saw the company meet several of its ambitious goals, including nearly 50% direct-to-consumer revenue. The company has laid out a promising strategy for growth in Asia and is heading into its busy season once again. Shares are still quite pricey, but investors should not be afraid to look for entry points before the summer comes to a close.
ATS Automation (TSX:ATA)
ATS Automation stock was up over 35% in 2018 as of close on August 16. Back in February, I’d discussed why investors should be aggressively targeting companies that are positioned to take advantage of automation. In its fiscal 2019 first-quarter results, ATS Automation saw revenues climb 14% year over year to $300 million and order bookings rose 35% to $358 million.
Stars Group stock has pulled back after soaring to all-time highs in the early summer. This was on the back of positive quarterly earnings and the landmark decision from the U.S. Supreme Court that paved the way for legalized sports gambling. In a recent article, I’d argued why the retreat was a great opportunity for investors to buy low on a company that is in a terrific position to benefit from legal sports betting going forward.
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 Ambrose O'Callaghan has no position in any of the stocks mentioned. Kinaxis is a recommendation of Stock Advisor Canada.