3 Top Growth Stocks for 2020

Tired of sluggish returns? This trio of stocks, including Dollarama (TSX:DOL), could give your portfolio the boost of growth it needs.

| More on:
Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept

Image source: Getty Images

Hi there, Fools. I’m back to draw attention to three attractive growth stocks. Why? Because companies with rapidly growing revenue and earnings:

As legendary investor Warren Buffett once said, “Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value.”

If you’re looking to make a big financial splash in 2020, these three stocks are a good place to start.

Dollar days

Leading off our list is Dollarama (TSX:DOL), which has grown its earnings per share (EPS) and revenue at a rate of 154% and 65%, respectively, over the past five years. Year to date, shares of the deep discount retailer are up a solid 47%.

2018 was a bad year for the stock, but 2019 continues to be underpinned by strong operating momentum. In the most recent quarter, diluted EPS increased 7% as sales improved 9% to $946 million. More importantly, same-store sales – a key gauge of a retailer’s health – grew 4.7%, suggesting that Dollarama’s competitive position remains strong.

Customers are responding positively to our compelling product offering and various merchandising tactics, as demonstrated by our strong top line performance for a second consecutive quarter,” said CEO Neil Rossy.

Dollarama currently sports a forward price-to-earnings (P/E) of 22.

Healthy opportunity

Next up, we have Jamieson Wellness (TSX:JWEL), which has grown its net income a whopping 1,140% over the past three years. Over the past six months, shares of the health products company are up a solid 27%.

Worries over slowing growth weighed heavily on the stock last year, but Jamieson has been picking up speed of late. In the most recent quarter, adjusted income increased 14% as revenue improved 8.6% to $80.6 million.

The Jamieson brand normalized after the impact of the prior year price increase with 12% growth in Canada,” said CEO Mark Hornick. “Our Specialty Brands returned to growth as a result of our ongoing efforts to improve sales force execution while strengthening our customer and consumer relationships.”

With a stable yield of 1.7%, betting on bullishness makes sense.

Easy does it

Rounding out our list is goeasy (TSX:GSY), which has delivered revenue and net income growth of 60% and 119%, respectively, over the past three years. Shares of the specialty lender are up a sold 57% so far in 2019.

Goeasy continues to leverage its scale (over $3.3 billion loans originated) and omni-channel business model (online, mobile, and over 400 physical locations) to deliver solid growth for shareholders. In the most recent quarter, net income increased 66% as revenue jumped 20% to $148 million.

With a sequential increase in our risk-adjusted yield, the credit quality in the province of Quebec performing close to the portfolio average and secured lending representing 11% of our originations, we are striking the right balance between loan growth, yield and credit risk management,” said CEO Jason Mullins.

Goeasy currently sports a forward P/E of 11.

The bottom line

There you have it, Fools: three attractive growth stocks for 2020.

They aren’t formal recommendations. Instead, view them as ideas worth further research. Even stocks with breakneck growth can crash hard if you don’t pay attention to valuation, so plenty of due diligence is still required.

Fool on.

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 Brian Pacampara owns no position in any of the companies mentioned.   

More on Investing

Target. Stand out from the crowd

2 Canadian Stocks I’m Buying Lots of This Year

I’m looking to snatch up exciting Canadian stocks like VieMed Healthcare Inc. (TSX:VMD) throughout 2023.

Read more »

grow money, wealth build
Dividend Stocks

Got $3,000? 3 TSX Growth Stocks to Buy in January 2023

Top TSX growth stocks that look appealing for 2023.

Read more »

woman data analyze
Dividend Stocks

Need Passive Income? Turn $15,000 Into $851 Annually

This passive-income stock is already climbing higher, up 16% in the last three months! Yet it's still valuable, so you…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

Retirees: 3 Reliable Canadian Dividend Stocks to Buy Now for Passive Income

Top TSX dividend stocks now appear oversold.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.

2 TSX Stocks Safer for Investing in a Recession

These consumer companies will likely beat the broader market averages amid a recession. These stocks offer stability, income, and consistent…

Read more »

Dividend Stocks

For $100 in Passive Income Each Month, Buy 1,500 Shares of This REIT

REITs such as Northwest Healthcare can enable investors create a passive-income stream as well as benefit from capital gains.

Read more »

A colourful firework display
Dividend Stocks

2 Canadian Growth Stocks (With Dividends) to Start 2023 With a Bang

Here are two of the best dividend-paying Canadian growth stocks you can invest in at the start of 2023 and…

Read more »

sale discount best price
Dividend Stocks

4 Insanely Cheap Canadian Stocks to Buy for Passive Income

The recent bear market has created some incredible bargains, especially for those looking for passive income. Here are four cheap…

Read more »