5 Ambitious Stocks for a Growth-Focused TSX Investor

OrganiGram Holdings Inc. (TSXV:OGI) and four other stocks are high on the list for a growth-focused portfolio today.

Growth investors have some strong options at the moment, with everything from gold to cannabis to energy stocks offering high expected growth in earnings as well as a mix of upside and passive income. Let’s take a look at five of the best Canadian stocks to buy now for capital gains as well as some dividends.

Wesdome Gold Mines (TSX: WDO)

On a tear since May, Wesdome Gold Mines is as subject to wild climbs and precipitous drops as most other precious metals stocks exposed as they to the vagaries of the market. Up 5.38% in the last five days at the time of writing, an impressive 1054.5% year-one-year earnings growth puts its own 26.2% five-year average in the shade.

Low debt at 6.2% of net worth suggests a stock that’s just right for the risk-averse trader, while a 44.8% expected annual growth in earnings puts Wesdome Gold Mines firmly on the high-growth investor’s radar. While a P/E of 44.4 times earnings and P/B of 4.2 times book signify overvaluation, the growth-focused buyer may want to consider this as part of the territory for an outperforming ticker.

Lassonde Industries (TSX: LAS.A)

Growth investors may want to consider this beverage stock with some geographical spread. A steady-moving stock, Lassonde Industries has seen a one-year past earnings growth of 17.6% that closely hews to its five-year average of 16.5%.

Its five-year returns of 70.6% outperformed the market as well as the Canadian food industry, which itself returned 50.2% for the same 12-month period. A P/E of 14.2 times earnings indicates good value for money, while a dividend yield of 1.82% is on offer.

SEMAFO (TSX:SMF)

Gold stock SEMAFO has seen significant price volatility in the last three months, making it a good choice for the momentum-focused trader, while a 40.6% expected annual growth in earnings suggests a stock with a lot of upside potential. Its 90-day returns of 51% outperformed the Canadian metal and mining industry’s 11.9%. Selling at around a third of its future cash flow value, it’s in a sweet spot in terms of value, with a P/B of 1.3 times book that beats the market.

OrganiGram Holdings (TSXV:OGI)

Rising since December, this cannabis products stock has delivered more than 20% year-on-year growth in earnings in the last five years with an impressive 61.2%. While it is overvalued with a P/E of 21.5 times earnings and P/B that’s five times the book price, a 23.1% expected annual growth in earnings should be enough to hook a growth investor.

Mullen Group (TSX: MTL)

Down 3.55% in the last five days, this provider of North American transportation and oilfield solutions saw its share price start to fall back in September; however, with a 74.4% expected annual growth in earnings on the cards, investors might wonder whether it could repeat its gradual 2016 climb.

More shares have been bought than sold by Mullen Group insiders in the last three months, and with a market-beating P/B of 1.4 times book and dividend yield of 5.01% on offer, it seems a discerning choice.

The bottom line

OrganiGram Holdings displays both good-quality stats as well as some decent momentum, though insiders have sold more shares than bought them in the past few months. Its 23% past-year ROE and near-threshold debt level make for a sturdy stock with some good-quality indicators. Lassonde Industries’s P/B ratio of twice book suggests per-asset overvaluation, though not by a wide margin, while SEMAFO’s positive five-year average earnings growth and solid balance sheet suggest a low-risk breakout gold stock.

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

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