How to Make a Killing When the Bull Market Returns

Canadian investors should look to hold promising growth stocks like Kinaxis Inc. (TSX:KXS) when the next bull market comes around.

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The S&P/TSX Composite Index climbed 62 points to close out the previous week on Friday, April 18. Some of the top-performing sectors included information technology, industrials, and utilities. Despite its recent momentum, the TSX Index has failed to recoup all its losses from the spring and summer of 2022. Today, I want to look at three TSX stocks that have huge potential to deliver big when the next bull market arrives. Let’s jump in.

This TSX stock offers capital growth and income as a Dividend Aristocrat

goeasy (TSX: GSY) is a Mississauga-based company that provides non-prime leasing and lending services under the easyhome, easyfinancial, and LendCare brands to consumers across Canada. Shares of this TSX stock have dropped 13% so far in 2023. The stock is down 23% year over year.

Investors can expect to see this company’s first-quarter (Q1) fiscal 2023 earnings in the first half of May. In fiscal 2022, the company saw its loan portfolio increase 38% to $2.79 billion. Meanwhile, it posted adjusted annual diluted earnings per share (EPS) of 11% to $11.55. goeasy announced an annual dividend-per-share increase of 5.5% to $3.84. This company has delivered nine straight years of dividend growth. That makes goeasy a Canadian Dividend Aristocrat.

Shares of this TSX stock currently possess a favourable price-to-earnings (P/E) ratio of 10. Moreover, goeasy offers a quarterly distribution of $0.96 per share. That represents a solid 4.1% yield.

The bull market could vault this exciting stock to the next level

ATS (TSX: ATS) is the second TSX stock I’d look to snatch up and hold in anticipation of the coming bull market. This Cambridge-based company that designs and builds factory automation solutions to a worldwide customer base. Shares of this TSX stock have climbed 27% in the year-to-date period. Meanwhile, its shares are up 36% year over year.

This is another company that is set to unveil its next batch of earnings early next month. In Q3 fiscal 2023, ATS delivered revenue growth of 18% to $647 million. Indeed, the company achieved record Order Bookings of $979 million and an impressive Order Backlog of $2.14 billion. Meanwhile, ATS reported adjusted EPS of $0.52, which were flat in the year-over-year period.

ATS stock currently possesses a P/E ratio of 36. That puts this TSX tech stock in middling value territory compared to its industry peers. That said, ATS is a stock with promising growth potential.

One more tech stock I’m excited to own in a bull market

Kinaxis (TSX: KXS) is the third and final TSX stock I’d look to target ahead of the next bull market. This Ottawa-based company provides cloud-based subscription software for supply chain operations in North America and around the world. Some of its top customers include Ford Motors, Unilever, and Toyota. Its shares have jumped 17% so far in 2023.

The company unveiled its Q4 and full-year fiscal 2022 results on March 2, 2023. For the full year, it delivered total revenue growth of 46% to $366 million. Moreover, adjusted earnings before interest, taxes, depreciation, and amortization surged 99% to $79.4 million. Kinaxis is trading in solid value territory compared to its industry peers. This is a tech stock that could take another huge leap in the next bull market.

Fool contributor Ambrose O'Callaghan has positions in Goeasy and Kinaxis. The Motley Fool recommends Kinaxis. The Motley Fool has a disclosure policy.

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