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.

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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 (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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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

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