As a growth investor, I am always looking for companies that outperform the market. At the very least, I will look for companies that outperform the peers within their sector. That way, it ensures that I am still investing in the best companies available, while diversifying into sectors that I previously don’t have exposure to. (Full disclosure, I do not own either of these companies). However, they are both very interesting and may suit your investment style more than it does mine.
A new way to think about a clean future
As a trained biologist, I am very interested in companies that promote a healthy environment. It is what first comes to mind when I think of David Gardner’s famous phrase “Make your portfolio reflect your best vision for our future.” That said, I am very interested in Cascades (TSX:CAS).
Cascades is a company that produces, converts, and markets packing and tissue products that are primarily composed of recycled fibres. The company clearly states its mission statement on its website. Cascades believes that there is a better way to package and protect products, manage residual materials, and create a cleaner world.
Although the company has a large number of products and services, the business segment that interests me the most is its packaging business. Specifically, I am interested in its e-commerce packaging. It is no secret that I believe e-commerce is one of the most important emerging industries in the world.
Cascades offers a variety of box types that suits the custom needs of each merchant. The company also offers testing at its research facilities to ensure a perfect result every time.
Year-to-date, Cascades has been one of the better-performing growth stocks in Canada. It has returned 25.33% since the start of the year. At a market cap of about $1.3 billion, Cascades still has a lot of room to grow. Look at this company if you are interested in an indirect investment in the e-commerce industry, while also promoting companies that are trying to give the world a healthier future.
This company also handles packages
When it comes to delivering parcels to consumers, many hands end up handling the item before it reaches its destination. As companies like Cascades create boxes that items are shipped in, other companies like TFI International (TSX:TFII) are responsible for transporting the items to the consumers.
TFI International is a global leader in transports and logistics. Its network spans cities in Canada, the United States, and Mexico. The company has generated most of its growth via acquisitions in the three countries mentioned. Although some investors are wary of this type of growth strategy, it has previously been implemented by some very successful Canadian business. Examples that come to mind are Constellation Software and Enghouse.
TFI International has four distinct business segments: package and courier, less-than-truckload, truckload, and logistics. As of its latest earnings report, 48% of the company’s revenue comes from its truckload business segment. Its logistics services accounts for the next largest portion of TFI International’s revenue.
Year-to-date, TFI International stock has gained 31.25%, which comes off the heels of a 43% drop during the March market crash. This strong recovery shows a lot of support in the company’s stock. TFI International currently has a market cap of just over $5 billion.
While it is already a mid-sized company, its executive team still plans on acquiring new businesses when opportunities arise. If successful, TFI International may still have tons of room to grow.
Cascades and TFI International are two very strong growth companies that you may not know about. They have both shown excellent growth in a year that has been very volatile to say the least. There’s definitely upside left in these companies moving forward.
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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 Jed Lloren has no position in any of the stocks mentioned.