Investors should brace for a slide in the equities market because of inflation fears. The S&P/TSX Composite Index, however, seems to be oblivious to the deafening noise. Canada’s primary stock exchange even climbed 108 points to start the week of May 17, 2021.
Rising inflation is a cause for worry, although it could enable some businesses to grow their revenues. Also, the demand for their products is high, so companies could pass the costs to consumers. Jamieson Wellness (TSX:JWEL), WELL Health Technologies (TSX:WELL), and Whitecap Resources (TSX:WCP) are the exciting high-growth stocks you can today. The share prices could soar in an inflationary environment while the Canadian economy slowly recovers from the pandemic’s impact.
Based in Toronto, Jamieson Wellness will do well regardless of high inflation because natural health products are in high demand. The $1.5 billion company delivered solid top- and bottom-line performance in Q1 2020 (quarter ended March 31, 2021) versus Q1 2020.
Total revenue and net income rose 16.3% and 18.2% during the quarter. Jamieson President and CEO Mark Hornick believes momentum is on their side. Hornick cites the nearly 9% growth in branded revenue both in the domestic and international markets.
Meanwhile, the stock is up 4.62% year to date and analysts recommend a buy rating. The share price could climb 12.33% from $37.67 to $50 in the next 12 months. Note that Jamieson also pays a modest 1.32 % and maintains a 50.52% payout ratio.
Growing EMR market
The Electronic Health Record Market should witness a 5.5% compound annual growth (CAGR) from 2019 to 2025. Industry analysts estimate the market size to be worth around US$38 billion. WELL Health Technologies should benefit from this lofty forecast. The $1.34 billion company from Vancouver, Canada provides digital electronic medical records software and telehealth services.
WELL Health also operates primary healthcare facilities that number 27 medical clinics as of March 29, 2021. At $6.87 per share, the healthcare stock trades at a 14.66% discount. Analysts are bullish and see a 96.5% upside potential to $13.50.
The 150% year-over-year record revenue growth in Q1 2021 indicates the massive growth potential of WELL Health. Its 345% increase in software and services revenue was a mean achievement. Also, the quarter ended March 31, 2021 is the second consecutive quarter of positive adjusted EBITDA.
Whitecap Resources in the energy sector is on a comeback trail following a slump in 2020. Investors are winning by 23.57% year to date. The trailing one-year price return is 253.57%. If you were to invest today, the share price is only $5.94. However, analysts predict the price to soar 51.5% to $9 within a year.
The $3.54 billion oil & gas company from Calgary pays monthly dividends. Whitecap’s 3.23% dividend should be sustainable given the low 24.9% payout ratio. The new yield follows the board-approved 8% increase announced on May 17, 2021.
Whitecap Resources also revealed the acquisition of Kicking Horse Oil and Gas. The company paid $56 million in cash and 34.5 million in WCP common shares for the privately held company of Quantum Energy Partners. Management expects to generate significant free funds flow in 2021 and beyond due to the outperformance of Whitecap’s existing assets.
Fantastic growth potential
I couldn’t agree more with the forecasts of market analysts. The high-growth potentials of the three TSX stocks are fantastic.
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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 Christopher Liew has no position in any of the stocks mentioned.