If there was a single word to describe how the market has fared over the past year, it would be volatile. That market volatility has investors scrambling to cover losses and turning to precious metals and defensive stocks. A better option would be to look for some top growth stocks to get a head start on the next bull market — yes, the next bull market.
The market will recover. Banks will recover (or get acquired). But buying some of the market’s best top growth stocks now puts investors in a prime position for when the market returns to the bulls.
Here’s a look at two top growth stocks to consider buying right now.
This stock holds massive growth potential
When was the last time you gassed up the SUV and grabbed something from the convenience store in the gas station? Have you considered investing in that convenience store and gas station?
It’s an unlikely investment — at least until we talk about the potential of Alimentation Couche-Tard (TSX:ATD).
For those that are unfamiliar with the company, Couche-Tard is one of the largest gas station and convenience store operators on the planet.
In total, the company boasts nearly 14,000 locations in 24 countries around the world. In North America, that presence extends coast to coast in Canada and across 47 states in the U.S.
Couche-Tard has taken an aggressive stance on expansion. In fact, Couche-Tard has built its entire network out in just over 40 years, often by acquiring smaller regional players in the market.
That’s not to say Couche-Tard isn’t evolving. The company is building out an electric vehicle (EV) charging network across North America, following similar success in Europe. As EV sales rise and the ICE (internal combustion engines) sales slow, the long-term growth potential is huge.
Keep in mind that the longer charge time needed for EVs translates into more time spent in Couche Tard stores.
Couche-Tard is also expanding in other areas. Just this week the company announced a massive €3.1 billion deal to acquire 2,200 gas and retail stores across Germany, Netherlands, Belgium, and Luxembourg. That deal is expected to close later this year.
If that’s not reason enough to consider Couche-Tard, there are two more reasons.
First, Couche-Tard is recession resilient. The defensive nature of its business has allowed growth even in times of market volatility. In fact, Couche-Tard is up well over 20% in the trailing 12-month period.
Finally, let’s talk dividends. The 0.92% yield isn’t enough to retire on, but it’s stable and has seen annual upticks for over a decade.
Buy this stock before it really takes off
Like Couche-Tard, this next stock is one of the top growth stocks that every investor should consider. That stock to buy is Dollarama (TSX:DOL), the largest dollar store operator in Canada, and a growing retailer internationally.
The appeal of a dollar store is simple: it offers shoppers plenty of value-priced goods. In the case of Dollarama, those goods are offered at several fixed price points up to $5. Often, Dollarama will bundle several lower-priced goods to further enhance that value proposition.
Dollar stores thrive during times of uncertainty, such as the current high-inflation market. Consumers looking to slash costs will trade down to other retailers such as Dollarama.
That, in turn, results in strong sales growth for the retailer. By way of example, in the most recent quarter, Dollarama saw sales jump 14.9% to $1,289.6 million.
Those strong results, coupled with the defensive appeal of the stock, have helped fuel the stock’s growth. Over the trailing 12-month period, the stock has surged 9%, outperforming the market.
The top growth stocks to buy now
No stock is without risk, and that includes the incredibly defensive picks of Dollarama and Couche-Tard. Fortunately, both stocks offer stellar growth prospects that make them intriguing options worthy of consideration.
In my opinion, one or both stocks would do well as part of a larger, well-diversified portfolio.