If you’re looking for excitement from your stock choices, then I’m sorry but this is going to disappoint you. While the growth stock I’m going to discuss is certainly a winner in 2023, I’m an investor who likes to think long term.
Sure, there are other more exciting choices. But those choices also come with risks. Instead, today, I’m going to explain why Canadian Tire (TSX:CTC.A) is the best growth stock to pick up in May 2023.
Is it the highest? No. But is it the best? Yes
True, Canadian Tire stock doesn’t take the top spot of the highest growth on the TSX in 2023. But so what? Shares of Canadian Tire stock are still doing quite well, with shares up 21% in 2023 alone.
Shares have continued to climb after bottoming out last year. Now, it’s back to where it was at the beginning of 2022, which is certainly more than other companies can claim right now.
But what makes it the best? In my view, it’s going into a potential recession during the summer. While Canadian Tire stock is indeed a retail stock, I would still argue it should come out relatively unscathed.
The proof is right there
Canadian Tire stock proved it was able to recover quite well over the last several years and even the last several decades. This came as the growth stock rebounded during recessions, and even during the pandemic. While other retail stocks floundered, Canadian Tire stock saw a massive increase in its curbside and online offerings. And it continues to climb today.
What’s more, Canadian Tire stock has the advantage of having a diverse range of revenue offerings, as well as on site warehouse storage. It creates its own products that it can store on location, so it never runs out of its valuable offerings for patrons. It creates huge revenue as the top choice for auto service as well as its gas locations.
Then there’s the loyalty program, which has created new partnerships with credit card companies to bring in further revenue. Finally, it’s acquired some of the biggest Canadian retail locations under its banner in the last few years. Even on a basic level, Canadians still need items. And they need them cheap during a recession, which is why Canadian Tire’s products provide a great solution.
Look long term
It’s true that shares of this growth stock are up 21% year to date; however, there is more room to run. Shares of Canadian Tire stock are up 139% in the last decade, trading at 16.4 times earnings as of writing. It holds a dividend yield as well at 3.88% to consider when you pick it up, too.
All in all, there are many reasons to consider Canadian Tire stock today. With cheap options to consider during a recession and proof it can recover from those downturns, it’s also a safe choice. So, if you want a growth stock, it doesn’t have to be some risky option that could suddenly drop. Canadian Tire stock provides safety and security, even when its shares climb higher and higher.
