Heading into the week of the new year, it looked like the market volatility might ease, and the Santa Claus rally could help start 2022 off right. However, so far, the market has continued to be choppy, leading many top growth stocks to become quite attractive and great buys at these levels.
A lot of the volatility lately has to do with the Federal Reserve as well as the Bank of Canada forecasting numerous rate hikes this year.
Many investors have taken this time to re-risk their portfolios, which results in a lot of volatility. It also creates a tonne of opportunities for savvy investors who see the big picture and are investing for the long run to buy the top growth stocks while they trade undervalued.
So, if you’re looking to buy the dip and take advantage of the volatility, here are three of the top growth stocks to buy now.
A top Canadian retail stock
One of the most impressive Canadian growth stocks in recent years, especially in the retail sector, and a top buy today is Aritzia (TSX:ATZ).
Aritzia is a women’s fashion company that has a tonne going for it. The company is vertically integrated. It’s also created its own niche market of luxurious products at more affordable prices. In addition, it’s grown its boutique count exceptionally well. But most of all, its e-commerce segment has been extremely impressive.
For a fashion company, the fact that Aritzia does almost half of its sales online is incredible. It’s not surprising, though. E-commerce has been a priority of management since before the pandemic.
So, with Aritzia executing extremely well and with a significant runway for growth ahead of it as it expands in the U.S., it’s one of the top growth stocks to buy now.
And thanks to the volatility recently, it’s pulled back from the high it reached last week when it once again smashed earnings.
A top financial growth stock to buy and hold for years
Another excellent Canadian stock to buy today is goeasy (TSX:GSY), the financial company that specializes in consumer loans. goeasy doesn’t just specialize in consumer loans, though, it mainly services borrowers with a below prime credit rating.
This extra risk that goeasy takes on allows it to charge a higher interest rate to borrowers. So, as long as the company can find quality borrowers and keep its loan losses low, it has the potential to earn huge profits, and that’s exactly what’s happened over the last few years.
The company’s operations have exploded, and its earnings per share have risen from $2.23 in 2016 to $14.92 over the last four quarters. So, it’s no wonder that goeasy is one of the best growth stocks to buy now.
Not only does it continue to offer incredible growth potential, but its stock is now trading more than 25% off its high. So, if you’re looking to buy the dip during this volatility, goeasy is one of the top growth stocks in Canada today.
A high-quality residential real estate fund
Another high-potential Canadian stock that offers excellent growth and is a fund you can plan to own for years is InterRent REIT (TSX:IIP.UN).
InterRent owns a portfolio of residential real estate assets in Ontario and Quebec and has recently begun to expand into BC. The REIT is one of the top growth stocks to buy in Canada, earning investors a total return of more than 500% over the last decade.
It’s done this by consistently expanding its portfolio. However, more importantly, it’s made a tonne of upgrades and renovations to its properties which increases the net asset value of the fund. It also allows InterRent to charge higher rents, which is what’s led to the impressive cash flow growth.
InterRent is a top buy today, because it has a growth strategy that’s repeatable and operates in a highly defensive residential real estate industry — people always need somewhere to live. On top of that, the REIT is now almost 15% off its high, which is a significant discount for a stock of its calibre.
So, if you’re looking for a top growth stock to buy today, InterRent is certainly one of the best to consider.
