After several weeks of volatility towards the end of the year, the stock market appears to be well positioned to rally this year. However, that potential rally to greater new heights may have its share of bumps and knocks.
Rising inflation rates, impending rate hikes, and concerns about an expensive market waiting for a major downturn could become considerable obstacles to the market recovery. Provided that the market pulls through the volatility, the TSX boasts several names you could consider top growth stocks poised to beat markets this year.
Today, I will discuss two such stocks that you could consider adding to your portfolio if you’re looking for investments that could grow your wealth.
Nuvei (TSX:NVEI)(NASDAQ:NVEI) could be an excellent addition to your portfolio if you’re searching for growth stocks with significant upside potential this year. Nuvei is an $11.72 billion market capitalization electronic payment-processing company headquartered in Montreal. The payment-processing platform provider has been a massive growth driver for Canadian investors, and it delivered stellar returns for most of 2021.
However, the short-seller report by Spruce Point Capital Management came along to disrupt things for the company. Nuvei stock managed to soar to a new all-time high of $180 per share in 2021. The short-seller report had an immediate impact on the tech stock. At writing, Nuvei stock is trading for $82 per share, down by over half from its all-time high valuation.
Nuvei boasts strong growth prospects due to its large addressable market, substantial profit margins, and strong demand for its services. It could be a bargain for growth-seeking investors at its current levels.
Wheaton Precious Metals (TSX:WPM)(NYSE:WPM) is a stock to consider investing in if you’re bullish on growth stocks but also want to balance your portfolio with a defensive asset to offset any potential losses if things go sideways for aggressive growth stocks. Defensive assets for market downturns can include many names on the TSX, but Wheaton Precious Metals is an interesting stock to consider.
Wheaton Precious Metals is a $24.46 billion market capitalization previous metals streaming company headquartered in Vancouver. The company produces over 26 million ounces and sells over 29 million ounces of precious metals mined by other companies. Wheaton is not a gold producer. Rather, it is a gold streamer. These streaming companies have higher profit margins and run at a lower risk than traditional mining companies.
Streamers don’t directly own, develop, or operate mines. Instead, these companies pay mining companies up front and a portion of metals produced from those mining operations. At writing, the stock is trading for $54.28 per share, up by 16.18% since its October 2021 bottom. It could be a good addition to your portfolio today.
Remember that there’s an inherent risk involved with investing in any asset class, especially with equity securities. As the stock market gradually recovers from the impact of the pandemic, some TSX stocks are slated to perform better than many others due to industry tailwinds.
Payments-processing firms will become increasingly popular in the coming years as the world becomes more digitized. The precious metals mining industry (particularly gold producers) is slated to have a terrific year.
Nuvei stock and Wheaton Precious Metals stock are two stocks well positioned to provide you with decent shareholder returns as part of your self-directed portfolio this year.