TFSA Investors: 3 Amazing Growth Stocks to Buy for 2020

Tired of sluggish returns? This trio of stocks, including Canada Goose Holdings (TSX:GOOS)(NYSE:GOOS), could give your portfolio the boost of growth it needs.

| More on:
potted green plant grows up in arrow shape

Image source: Getty Images

Hello, 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.” This makes particular sense in a TFSA account where all the upside is tax free.

Let’s get to it.

Good game

Leading off our list is Great Canadian Gaming (TSX:GC), which has grown its EPS and revenue at a rate of 202% and 203%, respectively, over the past five years. Year to date, shares of the casino operator are down 11%.

Despite the lacklustre price performance, Great Canadian continues to use its scale (25 properties across Canada) and experience (inception in 1982) to deliver exceptional growth for shareholders.

In the most recent quarter, EPS of $0.79 topped estimates by $0.04 as revenue jumped 20% to $354 million.

“The second quarter ended with the successful completion of the sale of Great American, which now allows Great Canadian to focus on its core growth markets as we continue to execute on our operational and development plans for 2019 and beyond,” said CEO Rod Baker.

Great Canadian currently sports a forward P/E of 15.

Chasing the goose

Next up, we have Canada Goose Holdings (TSX:GOOS)(NYSE:GOOS), which has grown its EPS and revenue at a rate of 259% and 117%, respectively, over the past three years. Year to date, shares of the winter jacket specialist are down 11%.

Worries over economic uncertainty and retail trouble have weighed on the stock, but Canada Goose continues to grow at an impressive rate. In the most recent quarter, total revenue spiked 59% to $71 million with robust growth seen in every geographic region.

“Fiscal 2020 is off to a great start with a strong performance in our first quarter, which delivered growth in every geography,” said CEO Dani Reiss. “As we continue to invest in capacity, we are well positioned to capitalize on the strong demand we see across our business.”

Canada Goose currently has a forward P/E of 25.

Seeing stars

Rounding out our list is Constellation Software (TSX:CSU), which has delivered EPS and revenue growth of 53% and 97%, respectively, over the past three years. Shares of the specialty lender are up a sold 54% so far in 2019.

Constellation continues to leverage its scale (125,000 customers in over 100 countries), market-leading positions, and financial muscle (annual consolidate revenues exceed US$3 billion) to deliver solid growth for shareholders. In the most recent quarter, net income increased 41%, adjusted EBITDA margin expanded 200 basis points to 25%, and revenue improved 12% to $846 million.

Moreover, operating cash flow clocked in at a solid $36 million.

Constellation shares currently sport a forward P/E of 37 and a beta of 0.9.

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. Constellation is a recommendation of Stock Advisor Canada.

More on Investing

Happy shoppers look at a cellphone.
Stocks for Beginners

Why Is Aritzia Stock Up 22% After Earnings?

Aritzia stock (TSX:ATZ) surged in share price after its last earnings, so is it still a good buy? Or should…

Read more »

Growth from coins
Dividend Stocks

1 Dividend-Growth Stock to Buy and Hold for the Next 15 Years

CN Rail (TSX:CNR) is a dividend-growth giant worth buying on weakness in July.

Read more »

analyze data
Dividend Stocks

The 5.11% Dividend Stock Set to Dominate the TSX

Brookfield Infrastructure (TSX:BIP.UN) has already been dominating the TSX, but more is certainly on the way.

Read more »

stock analysis

3 TSX Stocks You Can Confidently Buy Now and Hold Forever

These three companies are some of the top stocks on the TSX, giving you the confidence to buy now and…

Read more »

sale discount best price
Dividend Stocks

3 Remarkably Cheap TSX Stocks to Buy Right Now

Investing in undervalued TSX stocks such as Eldorado Gold should help Canadians derive steady gains in 2024 and beyond.

Read more »

Piggy bank with word TFSA for tax-free savings accounts.

2 Magnificent Dividend Stocks I Plan to Add to My TFSA in August

Here are two magnificent dividend stocks long-term investors may certainly want to hone in on before the next bull cycle…

Read more »

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

1 TSX Stock That Could Help Set You Up for Life

Early investors in Intact Financial (TSX:IFC) stock could earn a 17% dividend yield in 2024. Here's how IFC stock could…

Read more »

Canadian Dollars
Dividend Stocks

2 Magnificent Ultra-High-Yield Dividend Stocks That Are Screaming Buys in July

These two top Canadian dividend stocks offer over 8% annualized dividend yield in July, making them really attractive to buy…

Read more »