The S&P/TSX Composite Index moved up a measly two points to close out the previous week on Friday, May 12. The Canadian market has failed to regain the momentum that it built in April, seemingly stalling over the past few weeks. Today, I want to zero in on three stocks that have delivered huge growth in previous years. These equities have the potential to pop again, which is why I’m targeting them right now. Let’s jump in.
Why you should watch Air Canada this summer
Air Canada (TSX: AC) is the largest airliner in Canada. The Montreal-based company passed through an extremely challenging period, along with its peers in the airline space, during the COVID-19 pandemic. Fortunately, it has enjoyed a swift rebound since domestic and global economies reopened. Shares of Air Canada have shot up 11% month over month as of close on May 12. That pushed the stock into the black in the year-to-date period.
This stock soared to stunning heights in the 2010s. Its rise was made more impressive since the company edged close to catastrophe in the aftermath of the 2007-2008 financial crisis. Shares of Air Canada dropped below the $1 mark in March 2009. In early January 2020, Air Canada stock had climbed the mountain above the $50 price mark. Unfortunately, the black swan event that was the pandemic put an end to its remarkable run.
Investors have reason to be optimistic after the company’s first-quarter (Q1) earnings release. Passenger revenues more than doubled year over year to $4.08 billion. Meanwhile, operating revenues surged 90% from Q1 FY2022 to $4.88 billion. This stock is still trading in favourable value territory compared to its industry peers.
Here’s a stock that has delivered massive growth over the past decade
goeasy (TSX: GSY) is a Mississauga-based company that provides non-prime leasing and lending services under the easyhome, easyfinancial, and LendCare brands to Canadian consumers. Its shares have jumped 12% over the past month. That pushed the stock into positive territory so far in 2023.
This exciting financial stock is no stranger to big runs. It was also throttled during the first phase of the pandemic, as its stock sank below the $30 price point in March 2020. By March 2021, shares of goeasy had climbed above the $130 mark. The stock would peak above $215 per share in September 2021. Canadian investors should not overlook goeasy’s potential.
In Q1 2023, the company achieved record growth in its loan portfolio of 39% to $2.99 billion. Moreover, it posted revenue growth of 24% to $287 million. Adjusted diluted earnings per share (EPS) increased 14% to $3.10. Shares of goeasy currently possess an attractive price-to-earnings (P/E) ratio of 10. It offers a quarterly dividend of $0.96 per share. That represents a 3.5% yield. goeasy has also delivered dividend-growth for nine straight years, which makes goeasy a Canadian Dividend Aristocrat.
One more hot stock I’d look to snatch up in May 2023
WELL Health Technologies (TSX: WELL) is the third potentially explosive stock I’d target in the middle of May. WELL Health operates as a practitioner-focused digital health company in North America and around the world. Shares of this stock have dropped 4.1% month over month as of close on May 12. The stock has soared 79% so far in 2023.
This stock is already in the middle of another major growth spurt. WELL Health last put together a run like this after the March 2020 market dip. Indeed, investor interest in telehealth exploded, as governments pursued lockdowns around the world. While the pandemic appears to be in the rearview mirror, the telehealth space is still geared up for big growth going forward.
WELL Health unveiled its Q1 fiscal 2023 earnings on May 12. It achieved record quarterly revenues of $169 million — up 34% compared to Q1 2022. Meanwhile, adjusted earnings before interest, taxes, depreciation, and amortization climbed 14% to $26.7 million. This exciting stock is still trading in favourable value territory compared to its industry peers at the time of this writing.
