2 Top Growth Stocks to Buy This Instant

Inter Pipeline and goeasy could make for excellent additions to your portfolio right now for long-term wealth growth.

| More on:
Business success with growing, rising charts and businessman in background

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Growth stocks appear to be in favour with investors in the current market environment. After all, there is a lot to like about inflation-resistant stocks that could provide investor capital with significant growth. Growth stocks could also provide a substantial upside to investors, as the vaccination rollout continues worldwide.

Amid the hopes of a robust economic recovery, the Canadian equity markets remain strong. With interest rates likely to remain low for some time, there is room for optimism that the bull market could continue.

I would like to discuss two stocks that could be ideal picks for growth-seeking investors today.

Inter Pipeline

Inter Pipeline (TSX:IPL) is a company that recently made some waves as it was targeted by a hostile takeover bid by Brookfield Infrastructure Partners. However, the company unequivocally rejected the takeover bid, winning a lot of favour from its shareholders. According to the company’s management, the valuation offered by Brookfield was too opportunistic and did not reflect the company’s full and fair value.

Inter Pipeline firmly believes that it has a bright future. The $7.79 billion market capitalization company has a global energy infrastructure. Its integrated propane dehydrogenation and polypropylene complex, called Heartland Petrochemical Complex, is the first of its kind in Canada.

The project is designed to convert locally sourced and low-cost propane into polypropylene — a high-value plastic that is easy to transport. With plans to produce approximately 525,000 tons of polypropylene each year, the project could be a massive boost for the company’s cash flows.

goeasy

goeasy (TSX:GSY) has become big in recent years. The alternative financial services company has consistently outperformed the Big Five Canadian banks on the TSX. At writing, the stock is trading for $145.11 per share, representing 50% year to date and 300% 12-month returns.

The $2.36 billion market capitalization company’s core business segments are popular with Canadian borrowers. The company anticipates loan originations in Q1 2021 to increase by 12% to $272 million over the quarter. Based on this performance, the consumer loan receivables should be around $1.28 billion by the end of the quarter.

The company’s decision to acquire LendCare has been a massive move for the company. LendCare is one of Canada’s leading point-of-sale (POS) consumer financing providers. Theoretically, the $320 million deal should accelerate goeasy’s growth as the company pursues POS and product channel expansion.

The company’s valuation has increased by over 7,000% in the last 10 years. Analysts believe that goeasy should hit the $200 mark soon, representing even greater returns.

Foolish takeaway

There are several excellent growth opportunities on the TSX that Canadian investors can consider right now. Inter Pipeline and goeasy currently have all the favourable conditions working for them to provide substantial capital gains down the road. It could be the ideal time to establish positions in the companies to virtually guarantee substantial wealth growth in the coming years.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends BROOKFIELD INFRA PARTNERS LP UNITS and Brookfield Infrastructure Partners.

More on Dividend Stocks

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Dividend Stocks

TFSA Dividend Income: 2 TSX Stocks to Buy on the Pullback

These TSX stocks look oversold and pay attractive dividends that continue to grow.

Read more »

oil tank at night
Dividend Stocks

1 Top TSX Energy Stocks for Summer 2022

TSX energy stocks have tanked recently, but they could enjoy a nice summer rally. Here's one top stock I'm eyeing…

Read more »

TIMER SAYING TIME FOR ACTION
Dividend Stocks

Market Correction: 2 Cheap TSX Dividend Stocks to Buy Now for a Self-Directed RRSP

These top TSX dividend stocks look cheap right now for a self-directed RRSP focused on total returns.

Read more »

Target. Stand out from the crowd
Dividend Stocks

3 Dividend Stocks That Might Keep Pace With 7.7% Inflation

Three high-yield dividend stocks that might help investors keep pace with Canada’s 40-year-high inflation.

Read more »

value for money
Dividend Stocks

2 Canadian Stocks Trading at Unheard of Prices

Dirt-cheap stocks are a dime a dozen, but a few of them offer you a valuable opportunity, as they trade…

Read more »

Canadian energy stocks are rising with oil prices
Dividend Stocks

Is Suncor Stock a Buy Right Now?

Suncor has delivered outsized gains to investors in 2022 and might continue to do so for the rest of the…

Read more »

Canadian stocks are rising
Dividend Stocks

3 Ways to Invest in Canadian Real Estate Under $20

Real estate can be a great way to make passive income, but you certainly don't have to invest a lot…

Read more »

grow dividends
Dividend Stocks

TFSA Wealth: 2 Oversold Canadian Stocks for a Retirement Fund

These top TSX divided stocks look attractive today for TFSA investors.

Read more »