The first cryptocurrency only appeared about 13 years ago, a short time compared to the long history of the stock market. Importantly, it’s impossible to tell if Dogecoin or some other new cryptocurrency has staying power.
It might make sense to hold a basket of cryptocurrencies, including Dogecoin, as a small percentage of a diversified investment portfolio for long-term investment. However, it’s probably best to invest primarily in proven assets like stocks and real estate for your portfolio.
If you hold Dogecoin and other cryptocurrencies, tuck them away, then forget about them. Consider buying these Canadian growth stocks that have performed well and just reported stellar earnings!
Savaria
Savaria (TSX: SIS) just reported strong Q1 2021 results with revenue growth of 27% to $112 million and adjusted EBITDA growth of 40% to $17 million versus Q1 2020. On a per-share basis, the adjusted EBITDA increased by 29% to $0.31.
A part of the quarter’s results was helped by the Handicare Group AB acquisition completed on March 4. Handicare had an enterprise value of more than $520 million. The acquisition expanded Savaria’s product offerings and geographical reach.
The dividend stock has done well by delivering total returns that outperformed the market returns in the past 12 months, five years, and 10 years. It offers a nice yield of 2.6% and will likely continue outperforming in the long run. The stock’s 10-year annualized returns are north of 29% — a 16-bagger!
Total Return Level data by YCharts.
Savaria’s 10-year dividend growth rate is 16%, despite cutting its dividend in three of those 10. It has increased its dividend for the past six years. And it’s hard to imagine it cutting its dividend with expected strong earnings growth over the next few years.
Savaria is a small-cap stock with a market cap of about $1.2 billion that comes with acquisition and integration risks. So, expect volatility along the way.
Management expects to double its revenue in about five years with a focus on product innovation and continuous improvement, production efficiencies, and organic sales growth, benefiting from a growing global aging population.
Savaria is a global company that provides accessibility solutions for the physically challenged to increase their comfort, mobility, and independence. It generates sales in more than 40 countries with 30 direct sales offices, over 1000 dealers and 15 manufacturing or distribution facilities, in 12 countries.
A five-bagger in one year
Converge Technology Solutions (TSX: CTS) just reported record Q1 2021 results with revenue growth of 28% to $310 million and adjusted EBITDA growth of 71% to nearly $19 million versus Q1 2020.
Coincidentally, similar to Savaria, the small-cap IT stock has a market cap of about $1.2 billion. It just graduated from the TSX Venture Exchange to the TSX in February, so it’s still relatively unknown to the investing community. Analysts are jumping on fast, though. Currently, nine analysts cover the stock.
The tech stock popped more than 6% after reporting its Q1 results. However, analysts still think it’s undervalued by about 18%.
Notably, Converge is one of the fastest-growing IT service providers in North America. It provides hybrid IT solutions to the mid-market and has been employing a successful M&A strategy due to its cross-selling and integration capabilities.
Coming from a low base, the stock is already a five-bagger from a year ago!
Total Return Level data by YCharts.
In the Q1 earnings call, management revealed that it aimed to increase its revenue to $5 billion by the end of 2025. This could lead to the stock tripling in that period! Above all, the growth plan will rely on the success of Converge’s European expansion and growth in its managed services. More details will be disclosed in its annual general meeting coming up on June 23.
