2 High-Growth TSX Stocks You Can Still Buy for Cheap (at Least for Now)

Heavily discounted growth stocks might seem risky investments, but if you can look past it and develop a healthy tolerance level, you may see amazing returns.

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The TSX is home to many decent growth stocks that can offer you above-average returns without pushing the limits of your risk tolerance. But if you are looking for exceptional returns in a relatively short amount of time, you may have to contend with a relatively smaller pool of high-growth stocks.

Many of the high-growth stocks may carry more risk than you might be comfortable with, so if you are used to investing exclusively in low-volatility stocks, you may have to change your approach and beef up your risk threshold.

A healthcare stock

Well Health (TSX:WELL) belongs just as much to the tech sector as it does to the healthcare sector. The company aims to make healthcare delivery more efficient using tech solutions and develop an ecosystem that combines healthcare professionals, facilities, patients, services, etc.

COVID helped the world understand the true potential of digital healthcare delivery and how critical companies like Well Health can be in the future. This was probably the reason behind the stock’s 550% growth in less than a year in the post-pandemic market. However, the correction was proportionally brutal, and the stock fell over 69%, though it has started to recover.

This year has been quite amazing for the stock. It has already risen by about 56%, and the trajectory hasn’t shifted yet. Yet it’s still heavily discounted compared to the peak it reached in 2021, and if that’s where the stock is going, you could easily double your capital by buying now.

Another reason to consider Well Health is the potential of its business model and the network it has managed to establish. Thousands of healthcare professionals take advantage of its omni-channel network and the impressive portfolio of virtual services it offers.

A financial stock

Even though bank stocks are usually the top picks from the financial sector, thanks mostly to their dividends, they are not the right choices if you are seeking high growth. One of the best stocks you can buy for its powerful capital-appreciation potential (from the financial sector) is goeasy (TSX:GSY).

It’s a non-bank lender that offers personal and home loans to Canadians, and the scale and scope of its services are quite close to major credit unions operating in the country.

It has over 400 locations across the country and has furnished loans to over 1.3 million Canadians so far. One major factor behind its success is the market it has chosen to cater to — i.e., people with weak credit scores. These are the people that can’t ask a conventional bank for personal or home loans.

The stock experienced relatively consistent growth for most of the past decade and has gone through one major correction phase.

But even with the correction taken into account (which pushed the stock down 55% at its worst), the price has appreciated by about 1,000% in the last decade. It’s also one of the most generous dividend stocks in terms of payout growth. If you move now, you can buy this stock at a 48% discount.

Foolish takeaway

The two stocks can offer exceptional returns in the long run, assuming the market conditions remain adequately favourable. Both companies have a strong presence in their respective industries and adequate room for organic growth.

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 Adam Othman 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.

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