The equity markets continue to trade near record highs, making investors extremely nervous. The rally has primarily been driven by the massive outperformance in technology stocks, as the COVID-19 pandemic acted as a tailwind for several of these companies. However, there are a few other growth stocks trading at a discount that you can look to add to your portfolio right now.
Canada Goose
The first stock on my list is domestic retailer Canada Goose (TSX: GOOS)(NYSE: GOOS). Shares of the company fell close to 10% on August 11, as the company failed to impress investors following its quarterly results.
In the June quarter, Canada Goose’s direct-to-consumer sales stood at $29.4 million compared to just $10.4 million in the prior-year period. However, its operating loss also widened to $60.7 million from $59.3 million in this period.
Canada Goose attributed the loss to higher marketing spend and investments in strategic initiatives as well as an increase in performance-based compensation expenses.
The recent pullback in GOOS stock allows investors to buy the dip and benefit from outsized gains over the long term.
WELL Health Technologies
This high-growth tech stock is down 14% from record highs and remains a top bet for 2021 and beyond. WELL Health (TSX: WELL) stock has, in fact, returned close to 8,000% in cumulative returns since its IPO in mid-2016.
Despite its astonishing returns, WELL Health continues to trade at an attractive valuation. Driven by highly accretive acquisitions, the company has managed to increase sales from less than $6 million in 2018 to $50 million in 2020.
Bay Street expects sales to touch $265 million in 2021 and $423 million in 2022, allowing the company to improve its bottom line from a loss of $0.03 per share in 2020 to earnings of $0.06 per share in 2022.
HEXO
A cannabis company that is down 90% from all-time highs, HEXO (TSX: HEXO)(NYSE:HEXO) is a stock that can gain momentum soon. This marijuana giant has been on an acquisition spree this year and is expected to increase sales from $81 million in fiscal 2020 to $254 million in 2022. This will also enable the company to narrow its adjusted loss from $7.08 per share in 2020 to $0.1 per share in 2022.
HEXO enjoys a share of 17% in Canada’s recreational marijuana market following its acquisition of Redecan for $925 million, making it the leader in this space.
In its most recent reported quarter, HEXO also managed to narrow its operating loss to $16.1 million compared to $25.6 million in the year-ago period.
Nuvei
A fintech giant that’s firing on all cylinders, Nuvei (TSX: NVEI) is a quality Canadian growth stock. Nuvei went public in September 2020 and has already returned a stellar 180% to shareholders in less than a year.
In the second quarter of 2021, Nuvei’s revenue soared 114% year over year to $178.2 million, while total volume on its platform increased by 146% to $21.9 billion. Its net income increased to $38.9 million compared to just $14 million in Q2 of 2020. Comparatively, its adjusted net income rose from $16.3 million to $64.5 million in the June quarter.
