Bitcoin, the world’s largest digital currency by market cap, delivered a banner year in 2021. Its peers in the crypto space also benefited as the fledgling space enjoyed more traction in the mainstream. However, it has been a slow start to 2022. Bitcoin has plunged to a three-month low, as the threat of rising interest rates and further regulations hangs over the crypto sector. Investors should forget about Bitcoin and target top growth stocks on the TSX instead. Let’s dive in.
This growth stock has benefited from rapid financialization over the past decade
TMX Group (TSX: X) is the first growth stock I’d snatch up over Bitcoin in the middle of January. This Toronto-based company operates exchanges, markets, and clearinghouses for capital markets in Canada and around the world. Financial markets and institutions have seen their influence expand greatly over the past decade. TMX Group will continue to deliver strong growth in this climate.
Shares of this growth stock increased only 3.2% in 2021. It has fallen marginally in the first two weeks of the new year. Investors can expect to see its final batch of 2021 earnings on February 7, 2022. In Q3 2021, TMX Group delivered revenue growth of 11% to $231 million. Meanwhile, adjusted diluted earnings per share climbed 12% to $1.57.
This growth stock last had a favourable price-to-earnings (P/E) ratio of 22. It offers a quarterly dividend of $0.77 per share. That represents a 2.4% yield.
Here’s why goeasy is perfectly positioned in the early 2020s
goeasy (TSX: GSY) is another growth stock I’d look to target over the reeling Bitcoin. This Mississauga-based company provides loans and other alternative financial services to consumers in Canada. Shares of goeasy climbed 88% in 2021.
Many Canadians were already reeling financially before entering the 2020s. That climate has worsened in the face of the pandemic, which make goeasy’s services even more attractive to a broader section of the population. In Q3 2021, goeasy reported loan portfolio growth of 60% to $1.90 billion. Meanwhile, adjusted net income was reported at $46.7 million or $2.70 on a per-share basis — up 48% or 35%, respectively, from the previous year. The company is set to release its Q4 2021 results next month.
Shares of this growth stock possess a very attractive P/E ratio of 11. Moreover, goeasy is a Dividend Aristocrat that offers a quarterly dividend of $0.66 per share. This represents a 1.5% yield. goeasy’s impressive growth trajectory should help you forget about Bitcoin to kick off 2022.
One more growth stock I’d snag over Bitcoin in January
Canada Goose (TSX: GOOS)(NYSE: GOOS) is the third growth stock I’m interested in adding in the middle of January. Shares of this top winter clothing brand increased 23% in 2021. However, the stock has plunged 12% in the opening weeks of 2022.
Investors can expect to see the company’s third-quarter fiscal 2022 results on February 2. In Q2 FY2022, Canada Goose delivered total revenue growth of 40% to $232 million. Meanwhile, gross profit was reported at $135 million — up from $94.2 million in the previous year.
Canada Goose still boasts high growth potential. Better yet, this growth stock is trading in favourable value territory compared to its industry peers. I’m looking to hold Canada Goose over Bitcoin to warm up my portfolio this winter.
