3 Growth Stocks I’d Buy if They Took a Dip

Three top-ranked growth stocks are exciting investment prospects, especially if you can buy them on the dip this year-end.

| More on:
data analyze research

Image source: Getty Images

Not all growth-oriented companies tanked from the market selloff this year. ARC Resources (TSX:ARX), TFI International (TSX:TFII), and Maxar Technologies (TSX:MAXR) endured the massive headwinds and made it to the 2022 TSX30 List. I’d buy one or all if the prices drop anytime soon.   


ARC Resources has dropped nearly 5% in the last 10 trading days, although at $17.80 per share, it’s still up 57.98% year to date. Energy stocks might experience turbulence because of the tight oil market and uncertainty over production quotas from OPEC+ members.

This TSX30 winner (rank 27) is a good buy, given the rising profits and free funds flow, even if the price declines. In the nine months that ended September 30, 2022, net income soared by a mind-blowing 1,338% to $1.56 billion from a year ago. Free funds flow rose 86% year over year to $1.67 billion.

The $11.35 billion energy company is Canada’s third-largest natural gas producer, the largest pure-play Montney producer, and a condensate producer. According to management, the goal of ARC Resources is to provide shareholders with an attractive total return through profitable investments and sustainable return of capital measures.

Over the past year, ARC returned 72% of free funds flow to shareholders. The board of directors approved a 25% increase in quarterly dividends at the end of the third quarter (Q3) of 2022. They also approved a preliminary capital budget of $1.8 billion for 2023 and projected it to generate around $1.7 billion in free funds flow. If you invest today, the dividend yield is 3.37%.


TFI International ranked 29th in this year’s edition of the flagship program for TSX’s top 30 growth stocks. At $141.74 per share (+0.80% year to date), the total return in 3.01 years is 246.11%. The modest 1.34% dividend should be safe and secure, given the low 13.78% payout ratio.

The $12.36 billion company is a leader in North America’s transportation and logistics industry. Thus far, in 2022, business performance has been steady and solid. After three quarters, total revenue and operating income climbed 25% and 22% year over year to US$5.74 billion and US$929.2 million, respectively. In Q3 2022, net cash from operating activities increased 60% to US$337.8 million versus Q3 2021.

Alain Bédard, TFI’s chairman, president, and chief executive officer, takes pride in the company’s resiliency in the face of challenging industry-wide conditions. He credits the diversity in the end markets and business lines. Bédard also notes the favourable exposure to large industrial end markets.


Maxar Technologies (21st) ranked higher than ARC Resources and TFI International in the prestigious TSX30 List. The technology stock made the list due to the strong adjusted return of 227% over three years. However, at the current share price of $32.63, investors are down 12.61% year to date. It has a 0.17% dividend offer.

The $2.43 billion space technology company delivers broadband communications and advance space operations. Maxar’s capabilities are in Space Infrastructure and Earth Intelligence. It started operations in 1957 and currently caters to governments and innovative businesses.

On Earth, Maxar provides high-resolution imaging satellites. For space, it designs and manufactures satellites and spacecraft components for communications. This space stock can deliver superior returns when its comprehensive space solutions eventually scale.

Buy on the dip

I recommend buying TSX30 winners ARC Resources, TFI International, and Maxar Technologies on the dip.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Investing

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

Why Open Text Stock Rose 11% Last Month

Not all tech stocks are performing poorly. In fact, Open Text stock (TSX:OTEX) continues to rise higher, though it's still…

Read more »

Business success with growing, rising charts and businessman in background

Could This Canadian Stock Be in for a Gigantic Meme Rally?

Could Cineplex become the next Canadian meme stock to see incredible gains, or will this company wither in obscurity?

Read more »

Target. Stand out from the crowd
Stocks for Beginners

3 Must-Buy TSX Stocks for Anyone New to Investing

Are you new to investing? These three TSX stocks for income, value, and growth are must-buys for any Canadian investor…

Read more »

grow dividends
Stocks for Beginners

After the Spinoff, Brookfield Stock Rose 16% in January

Brookfield stock is a wonderful business with a track record of delivering annualized returns of over 16%. And it's cheap…

Read more »

Businessman holding AI cloud
Tech Stocks

2 AI Stocks to Watch in February 2023

Those looking to invest in AI stocks can consider companies such as Nvidia and CrowdStrike Holdings right now.

Read more »

edit Woman calculating figures next to a laptop

Got $1,000? Buy This Growth Stock Before it Takes Off

Docebo (TSX:DCBO) is a great stock for long-term investors to buy and hold at these depths.

Read more »

A worker uses a double monitor computer screen in an office.
Tech Stocks

Better Buy: Shopify Stock vs. Lightspeed Stock

Shopify (TSX:SHOP) stock and Lightspeed (TSX:LSPD) stock both had their time in the sun, but which will feel the heat…

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Thursday, February 2

More corporate earnings reports could give further direction to TSX stocks today.

Read more »