The S&P/TSX Composite Index was up 94 points in late-morning trading on August 8. Some of the top-performing sectors include health care, battery metals, and base metals. Today, I want to zero in on three growth stocks that are worth snatching up in a relatively turbulent environment. These equities have the potential to deliver fantastic long-term gains for opportunistic investors this decade and beyond.
This growth stock offers exposure to the automation eruption
ATS Automation (TSX:ATA) is a Cambridge-based company that provides automation solutions to a worldwide client base. Shares of this growth stock have dropped 15% in 2022 at the time of this writing. The stock is still up 12% in the year-over-year period.
Acumen Research and Consulting recently estimated that the global industrial automation market was valued at US$189 billion in 2021. It expects this market to grow to $430 billion by 2030. That would represent a compound annual growth rate (CAGR) of 9.7% over the forecast period.
Investors can expect to see this company’s first-quarter fiscal 2023 earnings on August 10. It posted its fourth-quarter and full year 2022 results on May 19. In fiscal 2022, ATS Automation delivered revenue growth of 52% to $2.18 billion. Meanwhile, adjusted basic earnings per share (EPS) more than doubled to $2.17. Order Bookings rose to $2.45 billion compared to $1.62 billion in the prior year.
Shares of this growth stock currently possess a price-to-earnings (P/E) ratio of 32. That puts ATS Automation in solid value territory compared to its industry peers.
Here’s why I’m buying goeasy on the dip this summer
goeasy (TSX: GSY) is a Mississauga-based company that provides non-prime leasing and lending services to Canadian consumers. This growth stock has plunged 30% in 2022 as of early afternoon trading on August 8. That has made up the bulk of its losses in the year-over-year period.
This company is set to deliver its second-quarter 2022 earnings on August 11. In Q1 2022, goeasy delivered loan growth of 307% to $124 million. Meanwhile, its loan portfolio jumped 69% to $2.15 billion. Investors should be eager to snatch up shares of goeasy, as Canadians feel a financial crunch due to high inflation. Non-prime lenders could have a big role to play going forward.
goeasy last had an attractive P/E ratio of 13. Moreover, this growth stock is a certified Dividend Aristocrat with eight years of dividend growth under its belt. It offers a quarterly distribution of $0.91 per share, representing a 2.9% yield.
One more growth stock to snatch up in a burgeoning sector
WELL Health (TSX: WELL) is the third growth stock I’d look to snatch up in the first half of August. This Vancouver-based company operates as a practitioner-focused digital health company that services North America and clients around the world. Shares of WELL Health have dropped 26% in the year-to-date period.
The telehealth space enjoyed a surge in growth during the COVID-19 pandemic. This market is still geared up for strong growth in the years ahead. That trajectory has been reflected at WELL Health. The company is set to deliver another round of record revenue in the second quarter of 2022. Meanwhile, omni channel patient visits have climbed 50% from the prior year.
