MENU

Avoid Stagnant Stocks: Aim for This Kind of High Growth

From so-called sin stocks to potentially overlooked mining industry players, there are some high-growth tickers currently trading on the TSX index with a mix of low market fundamentals and healthy balance sheet stats. Let’s take a look at three of the best such stocks and see whether they might be suitable for mid-term capital gains investment.

Whitecap Resources (TSX:WCP)

One of the better potentially overlooked petroleum and natural gas stocks on the TSX, this sturdy Canadian ticker can boast a comparative debt level below the danger threshold at 38.9% of net worth; decent value for money is indicated by a P/B ratio of 0.5. A meaty dividend yield of 7.03% matched with a sizeable 57.9% expected annual growth in earnings make for a buy signal and indicate a decent addition to a passive-income portfolio.

Whitecap Resources insiders have bought more shares than sold them over the last few months, continuing a trend that’s persisted throughout the past year. Though down 8.32% in the last five days at the time of writing, this stock has been recovering gradually since December to the point that it is now trading with a P/E of 28.8.

Pollard Banknote (TSX:PBL)

Up 1.11% in the last five days, Pollard Banknote insiders have only sold shares in the course of last three months, making for a mixed signal. The share price has recovered considerably since December, though, and is unlikely to dip below the $20 mark. A diversified lottery and charitable gaming stock, TSX index investors may have overlooked this gem, which pays a small dividend yield of 0.51% and has a 23% expected annual growth in earnings ahead.

Though it has a so-so balance sheet with a debt level above the threshold of concern and is overvalued with a P/E of 27.8 and P/B of 5.1, a solid track record is indicated by a one-year past earnings growth of 30.1% and half-decadal rate of 25.5%. This latter characteristic bodes well for the future, making Pollard Banknote a good growth stock.

Major Drilling Group International (TSX:MDI)

With a focus on contract drilling services in the mining and exploration sector, Major Drilling Group International may be down 3.71% in the last five days, but it’s certainly now out. A strong track record is typified by a one-year past earnings growth of 26.1% and 18.4% five-year average, while Major Drilling Group International’s good balance sheet is indicated by a low level of debt at just 4.9% of net worth.

More shares have been bought than shed by Major Drilling Group International insiders over the last few months, while, trading at less than 50% of its future share flow value, Major Drilling Group International has a decent P/B ratio of 1.1. While no dividends are on offer here, growth investors have something to get excited about in a 103.3% expected annual growth in earnings.

The bottom line

With Major Drilling Group International topping the plus 100% high-growth stocks currently trading on the TSX index, is it the best of the three tickers listed here? Investors looking for some regular income from a growth stock could consider Whitecap Resources for its dividend instead, while Pollard Banknote offers a bit of both worlds.

Forget Apple! Buy This TSX Stock Instead…

There’s something crucial you need to know about Apple’s stock today, especially if you already own it, know someone who does, or have even thought about buying it.

This revolutionary new technology involved in “Project Titan” should make any investor’s ears perk up.

But you may want to consider investing in a TSX-traded company that’s poised to have a drastically larger role in this new tech, and yet is less than 1% the size of Apple.

Discover why we’re especially excited about this tech opportunity for Canadian investors like yourself.

Click here to learn more!

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

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.