The stock market had an overall fantastic year in 2021, but it ended the year with several weeks of volatility. At writing, the S&P/TSX Composite Index is up by 21.08% year over year, but it’s down by 2.51% since its all-time high on November 12, 2021. After several names going through a significant pullback, many new opportunities have arisen on the TSX for investors to identify the stocks and capitalize on them.
With the recent volatility on the stock market, you might not feel too inclined to invest in growth stocks if you are a risk-averse investor. However, investors with an appetite for growth and a risk-tolerance level that lets them stomach near-term volatility for stellar long-term returns have plenty of opportunities on the stock market today.
I will discuss two TSX stocks that you could add to your portfolio for this purpose.
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Cargojet
Cargojet (TSX:CJT) is a solid stock to own this year, because of the increasing demand in the e-commerce industry. Cargojet is a $2.89 billion market capitalization scheduled cargo airline business headquartered in Mississauga. The company operates cargo services in Canada and internationally, and the booming e-commerce industry has played a crucial role in its recent success.
The company has grown its fleet considerably over the years, and its next-day delivery capabilities for international shipping position it well in the cargo industry. The company has outpaced the broader markets during the pandemic and fared far better than passenger airlines during this time.
The demand for its services is likely to increase in the coming years, potentially making it an excellent stock to own. At writing, Cargojet stock is trading for $166.57 per share.
goeasy
goeasy (TSX:GSY) has been another solid business to own during the pandemic — for the most part. goeasy is a $2.96 billion market capitalization alternative financial company based in Mississauga. The company provides subprime loans to borrowers who do not qualify for loans from traditional lenders. goeasy’s revenues and earnings have increased consistently at a double-digit rate in the last 20 years, and it does not appear to be slowing down.
The company is looking forward to increased loan volumes this year, expanding its offerings, making strategic acquisitions, and increasing loan ticket sizes. All these factors could combine to drive its top line further this year and beyond. At writing, goeasy stock is trading for $179.27 per share. It is trading for a 17.64% discount from its all-time high in September 2021.
Analysts anticipate the company’s profits to grow rapidly this year, and that could make it an excellent stock to own at its current levels.
Foolish takeaway
It is crucial to remember that there is an inherent risk with investing in anything on the stock market. There are always safer options available in the form of other asset classes or defensive stocks that could provide you with a degree of capital protection. However, it’s also necessary to balance out your investment portfolio by allocating a portion of your capital to growth stocks.
Not all growth stocks are the same. Some stocks boast plenty of promise to provide you with significant wealth growth but don’t have the fundamentals to support such growth. It’s important to identify stocks that have the potential to deliver significant returns and have businesses that can deliver on that promise.
Cargojet stock and goeasy stock could be excellent additions to your portfolio for this purpose.
