Growth investors have exciting prospects to choose from, not in the technology sector but in healthcare, energy, and mining. BELLUS (TSX: BLU), Peyto Exploration & Development (TSX: PEY), and Perseus Mining Limited (TSX: PRU) have visible growth potential, and with less than $100 capital, you can buy one or all right now.
Promising trial results
Healthcare is the worst-performing sector in 2022, although BELLUS outperforms the broader market. At $11.60 per share, this biotech stock is up 14.06% year-to-date versus the TSX’s -7.90% year-to-date loss.
This $1.45 billion clinical-stage biotechnology company is developing BLU-5937, a highly selective P2X3 antagonist for refractory chronic cough (RCC). While biotech stocks are speculative, if not risky, the Phase 2b SOOTHE trial of BELLUS’ lead drug candidate showed positive topline results.
Management plans to initiate Phase 3 registration trials of BLU-5937 this quarter. Like most biotech firms, BELLUS still needs to make money. However, profits should pour in if BLU-5937 obtains FDA approval and makes it to the market.
Its President and CEO, Roberto Bellini, said BELLUS commits to bringing BLU-5937 to patients burdened by RCC. He adds that in Q2 2022, management has successfully identified a clear regulatory path to potential approval, and it should bring BELLUS closer to making its primary goal a reality.
Market analysts’ high price target for BLU is $28.31, or a potential 144% climb from its current share price.
Capital gains + dividends
For the first time since the launch of the flagship program for growth stocks in 2019, oil & gas companies dominated the 2022 TSX30 List. Peyto is one of 14 energy constituents that joined the pool of 30 top-performing stocks and ranked 17th in this year’s edition.
The $2.29 billion company explores and develops unconventional natural gas in Alberta’s Deep Basin. Its CEO, Darren Gee, said Peyto realized significant gains in revenues and cash flows in 2022 due to the relatively stable and high drilling rig utilizations, plus favourable commodity prices.
In Q2 2022, revenue and free funds flow increased 166% and 290% to $398.64 million and $97.81 million versus Q2 2021. Peyto’s earnings also soared 641% year-over-year to $94.54 million. At $13.49 per share, current investors enjoy a 48.8% year-to-date gain on top of the juicy 4.5% dividend yield.
Record fiscal 2022
Perseus is a 2022 TSX30 winner like Peyto. The mining stock is absurdly cheap at $1.65 per share, although the year-to-date gain is +12.43%. In 3.01 years, the overall return is 110.93%, which translates to a 28.19% compound annual growth rate (CAGR).
The $2.25 billion gold producer from Africa had an impressive fiscal 2022 due to strong operating performance at all levels of the business. In the 12 months ended June 30, 2022, revenue, net cash inflows, and profit increased 66%, 73%, and 101% year-over-year to $1.12 billion, $522.9 million, and $279.9 million, respectively.
Perseus’ record performance in all key metrics prompted the declaration of a bonus dividend ($0.79) in addition to the regular dividend ($1.64) for the year. The forward annual dividend yield is 2.11%.
Investment thesis
The healthcare stock will likely reap the rewards of success with its lead drug candidate, while the pair of TSX30 winners should extend their upward momentum in 2023.
