Canadian investors have been scurrying to put their capital to work in defensive and precious metals stocks due to persistent market volatility for over a year. With many investor portfolios seeing immense losses and declines in valuations since the start of 2022, unsurprisingly, they are seeking defensive and recession-resistant assets.
However, market volatility also offers a chance for more opportunistic investors. With many high-quality stocks trading for deep discounts compared to historical valuations, several growth stocks also trade at attractive levels. When the next bull market arrives, a few precious growth stocks can deliver stellar returns to investors who are preparing for it right now.
While not without risks, buying some of the top growth stocks in the market can put investors in an excellent position when the next big rally happens. Here is a look at two growth stocks you can consider adding to your portfolio today for this purpose.
Dollarama Inc. (TSX:DOL) is a $22.3 billion market capitalization operator of Canada’s largest dollar store retail chain. Headquartered in Montreal, Quebec, Canada, it offers a broad range of consumer staples online and through in-store sales across Canada.
Despite the retail industry being a saturated market, Dollarama’s competitive advantage against its peers puts it in a strong position to sustain its growth, having already proven itself over the last several years. It has consistently outperformed its peers and created immense shareholder value.
Slated to release its fourth-quarter earnings on March 29, the company is expected to report stable earnings growth and margins. It remains to be seen whether the earnings report will fuel its share prices in the coming weeks.
For its January 31-ending quarter, analysts anticipate Dollarama sto will report $0.85 in earnings per share, reflecting 15% year-over-year growth. Analysts also predict a 14% revenue growth for the quarter. As of this writing, Dollarama stock trades for $78.10 per share.
Alimentation Couche-Tard Inc. (TSX:ATD) is a $63.21 billion market capitalization company based in Laval, Quebec. The Canadian multinational company operates an internationally diversified portfolio of convenience stores across Canada, the US, Mexico, Ireland, Scandinavia, Poland, and several other international markets.
With over 14,000 stores located across 24 countries, the store and gas chain has a mundane business model that makes it a relatively more defensive asset than many others.
While many of its potential acquisition deals fell apart in recent years, the Couche-Tard team has reached an agreement to purchase almost 2,200 gas station locations across the Netherlands and Germany from TotalEnergies. The move can immensely boost its earnings in the upcoming quarters. With an aggressive expansion strategy, Couche-Tard has built its impressive portfolio in just four decades.
With a portfolio of electric vehicle (EV) charging stations across North America and one slated for Europe in the future, the diversifying retailer boasts significant long-term growth potential. As of this writing, Couche-Tard stock trades for $63.97 per share.
As a Foolish investor, you must remember that no stock is without risk. Investing in growth stocks entails a greater degree of capital risk.
Despite their inherently defensive nature, Dollarama stock and Alimentation stock boast immense growth potential that makes them worth considering for your self-directed portfolio. Adding these two growth stocks to a well-balanced portfolio can deliver substantial long-term wealth growth.