Casual Investors: 3 Low-Risk, High-Growth Stocks

Questor Technology Inc. (TSX:QST) and two other stocks look like surprisingly defensive plays on today’s watch list.

The following three Canadian stocks are today’s top choices for high-growth potential. These kinds of stocks are usually chosen for their high expected earnings, growth in revenue, or increased cash flow over the upcoming three-year period, as calculated by analysts. Let’s sift through the stats and see whether or not they make good investments at this point in time.

Questor Technology (TSX:QST)

A solid-looking capital gains play, Questor Technology operates in the “clean tech” space, producing on clean-air tech solutions. With a geographical spread that extends from North America to the Caribbean, Europe, Russia, as well as Asia, there’s a lot to recommend this stock to investors of various stripes.

With year-on-year returns of 34.4%, Questor Technology outperformed the energy services industry, which returned -20.4% over the past year. Shareholders who like to see their funds being put to good use should be pleased to see Questor Technology’s 27% past-year ROE

On a jagged tear since September, Questor Technology’s share price performance is typified by a see-saw of sudden climbs and falls; down 11.25% in the last five days at the time of writing, investors looking for a value opportunity in an outperforming stock should consider this tech-energy crossover.

A decent outlook, strong track record, and a healthy balance sheet go a long way towards a buy signal here, shown respectively by a 35.3% expected annual growth in earnings over the next one to three years, one-year past earnings growth of 119.1%, and a lack of debt.

IMV (TSX: IMV)(NASDAQ:IMV)

IMV (standing for “immunovaccine”) is an immuno-oncology company producing therapies in the cancer cell-mediated immunity sector. One of the most compelling healthcare stocks on the TSX index, more shares in IMV have been bought than sold by IMV insiders in the last three months, and in large volumes.

Up 0.37% in the last five days, this stock seems to have hit the bottom and is now ready for another dizzying climb (as per its June 2018 ascent to the $9 zone). Could it get there? A 63.5% expected annual growth in earnings suggests that good things are on the way, though investors may want to weigh up a P/B of 22.1 times book and negative one- and five-year past earnings-growth rates.

Goldcorp (TSX:G)(NYSE:GG)

A five-year average past earnings growth of 23.8% and below-threshold debt at 31.4% of net worth join a 35% discount and low P/B of 0.9 times book to make Goldcorp one of the best-looking growth stocks on the TSX. Insiders have sold more shares than they have bought them over the last few months, and in considerable volumes. A small dividend yield of 0.75% may entice the passive-income investor, while a high 119.4% expected annual growth in earnings is the main draw here.

The bottom line

Questor Technology’s expected three-year 31.9% return on equity makes one wonder why insiders have only sold shares in the last three months, though its P/B of 4.4 times book suggests overvaluation. Meanwhile, a returns-focused buyer may be more tempted by IMV’s higher expected three-year ROE of 67%. IMV looks like a solid defensive play for upside in the healthcare space.

Fool contributor Victoria Hetherington has no position in any of the stocks mentioned. The Motley Fool owns shares of Questor Technology Inc.

More on Dividend Stocks

shopper checks her receipt
Dividend Stocks

Your OAS Increase May Not Keep Up With Your Real Retirement Costs

OAS is rising with headline inflation, but individual retirement expenses can increase much faster than the national average.

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Dividend Stocks

The Next AI Winners May Own Trusted Data: I’d Watch This Canadian Stock

As AI models become widely available, trusted professional data could become a more valuable competitive advantage.

Read more »

man in bowtie poses with abacus
Dividend Stocks

How Much Would You Need in a TFSA to Earn $500 a Month?

A $500 monthly TFSA income target requires $6,000 annually, and higher yields dramatically reduce the capital required.

Read more »

people sit in two wooden beach chairs facing the Caribbean ocean holding drinks and making a toast
Dividend Stocks

2 Canadian Dividend Stocks I’d Buy and Hold for Life

These two Canadian dividend stocks offer an attractive mix of dividend income and future growth, making both worth a closer…

Read more »

person with spyglass looks at ocean horizon
Dividend Stocks

This 5.9% Dividend Stock Is One I’ll Never Sell — Here’s Why

This Canadian dividend stock has a great combination of a 5.8% dividend yield, resilient cash flow, and billions of dollars…

Read more »

concept of growth
Dividend Stocks

The Dividend Stock I’d Never Sell, Even in a Downturn

Fortis is a dividend stock I'd hold through a downturn. Its regulated utilities and dividend growth support a patient approach…

Read more »

frustrated shopper at grocery store
Dividend Stocks

2 Dividend Stocks Retirees Can Count on for Decades

These two Canadian dividend stocks offer a great mix of essential businesses, regular dividends, and long-term growth investments that could…

Read more »

customer comparison shops in liquor store
Dividend Stocks

How Much Income Triggers an OAS Clawback?

The OAS clawback is based on net world income, with a 2025 minimum recovery threshold of $93,454, not on a…

Read more »