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