Forget Bitcoin: Buy These Growth Stocks Instead

Bitcoin has had a rough start to 2022. I’m looking to growth stocks like goeasy Ltd. (TSX:GSY) instead in the middle of January.

| More on:
Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept

Image source: Getty Images

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.

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 Ambrose O'Callaghan owns goeasy Ltd. The Motley Fool owns and recommends Bitcoin. The Motley Fool recommends TMX GROUP INC. / GROUPE TMX INC.

More on Investing

Stock analysts were once excited about construction company Aecon as an investment.
Coronavirus

Bull or Bear: Why Analysts Changed Their Tune on Aecon Stock

Analysts had been champing at the bit for the construction company, but the tides have turned.

Read more »

Specialty Brands faces higher raw materials costs.
Dividend Stocks

What’s Next for Premium Brands Stock?

Shares of the specialty food production and distribution company have fallen about 25% since last October.

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Dividend Stocks

2 Interesting Buys in Any Market

Here are two intriguing buys in any market climate that offer defensive appeal as well as growth and income earning…

Read more »

Bank sign on traditional europe building facade
Bank Stocks

Should You Buy Bank Stocks Now?

Canadian bank stocks are getting cheap. Is this the right time to buy?

Read more »

stock data
Stocks for Beginners

2 Reliable Stocks Beginners Can Buy Amid the Market Selloff

As the broader market turmoil continues, new investors can buy these two reliable dividend stocks to get good returns on…

Read more »

Biotech stocks can be good yet risky investments.
Coronavirus

Is Bellus Health Stock Still a Buy After 30% Earnings Jump?

The biotech continues to make progress on obtaining FDA approval for its chronic-cough therapy.

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Dividend Stocks

TFSA Investors: 3 TSX Stocks for Tax-Free Passive Income

These Canadian corporations have strong visibility over future earnings and dividend payouts.

Read more »

Piggy bank next to a financial report
Investing

Do You Have Cash Sitting in Your TFSA? Now Is a Great Time to Buy Stocks

If you have cash in your TFSA that you're looking to invest, now is a great time to buy high-quality…

Read more »