3 Canadian Stocks With High Expected Earnings Growth

Three stocks from different industries, including Vermilion Energy Inc. (TSX:VET)(NYSE:VET), are expecting high growth in earnings ahead of them.

One of the breakout marijuana stocks of the TSX index this week, and possibly one of the most exciting tickers in the legal weed space at the moment, The Supreme Cannabis Company (TSX:FIRE) is up 3.27% in the last five days with a 104.3% expected annual growth in earnings on the way.

Let’s take a brief look at a few other pieces of data for this hot weed stock before seeing how it compares with two other tickers signaling high earnings growth on the horizon.

The stats for this pot stock are lit

A P/B ratio of 4 times book and a five-year beta of 2.11 relative to the market should get the capital gains investor’s interest right away: Here is a stock that can punch above its weight and has a share price that’s twice as volatile as the market. Going for three times the future cash flow value with an earnings growth of 25.9% over the last 12 months, The Supreme Cannabis Company could be a good recommendation for a marijuana stock newcomer.

Not far off its all-time high around the $3.20 mark about this time last year, The Supreme Cannabis Company hit a similar peak a few days ago. Indeed, pot stock lovers should be paying close attention to this stock, as it’s likely to provide investors with the potential for upside for some time to come. With low debt of 21% of net worth and a considerable amount of inside buying in the last three months, it’s certainly one to watch.

Maybe high-growth stocks aren’t one in Vermilion after all…

Puns aside, the next stock isn’t alone in having high growth in earnings ahead of it. However, with more inside buying than selling in the last three months, and with a 115.8% expected annual growth in earnings on the way over the next one to three years, Vermilion Energy (TSX: VET)(NYSE: VET) is looking like one of the most exciting energy stocks on the TSX index.

With a dividend yield of 8.62% and some mixed valuation stats – see a P/B of 1.9 times book and technical discount of 22% against its future cash flow value – it’s down 1.77% in the last five days and looking like a value opportunity.

Or consider a miner, such as Wesdome Gold Mines (TSX: WDO). Down 3.74% in the last five days at the time of writing, this popular miner saw a one-year past earnings growth of 237.2% and five-year average of 47.3%. Its balance sheet is hale and hearty with low debt of 5.5%. With a 61.3% expected annual rise in earnings, this company has the potential for high growth ahead of it.

The bottom line

Things to watch out for in the above stocks include some red flags for Vermilion Energy: a one-year past earnings loss of -186.9% is compounded in a five-year average of -45.2%, while its balance sheet is so-so with 73.8% of debt on its balance sheet. Meanwhile, the miner has a P/E of 56.4 times earnings and P/B of 4.3 times book, indicating overvaluation. Still, for high growth in earnings, these are three of the best stocks on the TSX index.

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

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