The nature of work and saving for retirement has shifted dramatically between generations in Canada. In 2019, I’d discussed the decline of defined-benefit pensions plans in the private sector. This means that most Canadian workers will need to focus on building their retirement nest egg through their own direction. Today, I want to look at three future stocks that have the potential for big growth in your Registered Retirement Savings Plan (RRSP). Let’s jump in.
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This exciting future stock belongs in your RRSP in the 2020s
Jamieson Wellness (TSX: JWEL) is the first future stock I’d recommend for an RRSP in this environment. This Toronto-based company is engaged in the development, manufacture, distribution, marketing, and sale of natural health products in Canada and around the world. Last year, I’d discussed why Canadian investors should look to target the health supplements market. Aging demographics and increased health consciousness in the wake of the COVID-19 pandemic has greatly bolstered this space.
Shares of this future stock have dropped 11% in 2022 as of close on April 11. In 2021, Jamieson delivered revenue growth of 11% to $451 million. Meanwhile, adjusted EBITDA climbed 13% to $100 million. This stock last had a price-to-earnings ratio of 28, which puts it in favourable territory at the time of this writing. Better yet, RRSP investors can count on its quarterly dividend of $0.15 per share. That represents a modest 1.7% yield.
RRSP investors who want to bet on electric vehicles should look to this stock
Lion Electric (TSX: LEV)(NYSE:LEV) is the second future stock that is worth targeting for RRSP investors in the start of the spring season. The electric vehicle market is also set to deliver very strong growth this decade and beyond. Lion Electric is a Montreal-based company that designs, develops, manufactures, and distributes purpose built-in, all-electric medium- and heavy-duty urban vehicles. Its shares have plunged 23% in the year-to-date period.
The company unveiled its final batch of 2021 results on February 24, 2022. It delivered 25 more vehicles than the previous year in the fourth quarter of 2021, while revenue rose $9.4 million to $22.9 million. Meanwhile, it reported net earnings of $28.3 million — up from a $53.0 million loss in the fourth quarter of 2020.
This future stock last had an RSI of 37, putting it just outside of oversold levels. I’m looking to stash this stock for the long term in an RRSP.
Here’s another future stock to target right now
Canadians should be eager for exposure to automation development in their RRSP. ATS Automation (TSX:ATA) is a Cambridge-based company that provides automation solutions to a global client base. Shares of this future stock have dropped 18% so far in 2022. However, the stock is still up 52% from the prior year.
It released its third-quarter fiscal 2022 results on February 2. ATS Automation posted revenue growth of 47% to $546 million. Meanwhile, adjusted basic earnings per share rose to $0.52 over $0.30 in the previous year. This future stock is trading in favourable value territory compared to its industry peers. ATS Automation is well worth stashing in your RRSP in 2022.
