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Millennials: 2 Growth Stocks to Add to Your TFSA Today

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The S&P/TSX Composite Index rose 35 points on January 11. The TSX Index has climbed 4.3% in January so far. It has been a great start to 2019 after a brutal final quarter of 2018.

Stocks still have a long way to go for many investors to recoup losses from 2018. The carnage late last year was the worst bout of volatility since the financial crisis. This may have come as a shock to millennial investors, many of whom may have not been exposed to a true bear market since they first started investing.

Today I want to focus on two stocks that still look like appealing additions, even after the early bump. These should be particularly attractive to millennials due to the long-term growth potential both companies hold. Let’s dive in.

Kinaxis (TSX:KXS)

Kinaxis is an Ottawa-based company that provides software solutions for sales and operations planning and supply chain management. Shares have increased 8.5% in 2019 as of close on January 11. However, the stock is still down 15.6% over the past three months.

Kinaxis was my top stock pick for December 2018. The stock dipped into oversold territory in mid-to-late November but has since given off neutral signals and last had an RSI of 58. Still, shares are trending close to its 52-week low of $60.01 as of close on January 11.

The company is expected to release its fourth-quarter results in late February. Kinaxis took a hit after its third-quarter results were released, as several late-stage deals slipped outside the quarter. Earnings are still on track for very solid growth in 2018, and Kinaxis expects to provide a 2019 forecast that promises accelerated revenue growth for 2019. Kinaxis’s supply chain technology has attracted large clients across industries in recent years, and the modernization of supply chains and operations planning will only accelerate into the next decade.

Kinaxis remains a top tech growth stock to own today.

goeasy (TSX:GSY)

goeasy is a Mississauga-based financial services company that offers merchandise leasing of household furnishings, appliances, and home electronic products to consumers. It also offers unsecured installment loans. goeasy stock has surged 21.5% in January so far.

Back in the spring of 2018, I’d discussed why a tighter credit environment for Canadian consumers would lead to more clients for alternative lenders like goeasy. In the third quarter of 2018, goeasy reported a 40.5% year-over-year increase in loan originations to $221 million. This was driven by increased consumer demand for the core unsecured loan product and the further expansion of risk-adjusted rate loans.

goeasy expects its gross loan receivable portfolio to exceed $1.1 billion at year end in fiscal 2019. It also forecasts revenue growth between 20% and 22%. goeasy stock has been a top growth stock over the last three years, climbing 155% over that time span. The stock also offers a quarterly dividend of $0.225 per share. This represents a 2% yield.

goeasy stock boasted an RSI of 69 as of close on January 11. This indicates that the stock is veering close to overbought territory as we approach the midpoint of January. goeasy is an enticing long-term hold, but investors may want to await a pullback before stacking early in 2019.

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.

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