Despite elevated volatility and persistent inflation, the TSX has remained above 20,000 points since July 12, 2023. Also, only two of the 11 primary sectors are in red territory as of this writing. If you’re looking for buying opportunities right now, three explosive stocks should be on your shopping list.
Alimentation Couche-Tard (TSX:ATD), Computer Modelling Group (TSX:CMG), and Cameco (TSX:CCO) are well positioned to sustain their upward trajectories and deliver superior returns this year.
Recession resistant
Couche-Tard has reached a broad scale since the opening of its first store and foray into the U.S. market in 2001. Acquisitions, expansions, and launching of several brands were non-stop and ongoing. In 2023, the global footprint comprises 14,468 stores, 24 countries, and three iconic global brands.
Expect the $67.93 billion fuel and convenience leader to stay recession resilient, like during the dot.com bubble and Great Recession. The geographic diversification and significant scale are competitive advantages, because it provides Couche-Tard with the flexibility to counter industry headwinds.
Management is also innovating for the future with the rollout of electric vehicle (EV) charging stations. At $69.52 per share, the consumer staples stock is up +17.70% year to date and pays a modest 0.8% dividend.
Rare gem
Computer Modelling is a rare gem in the high-growth technology sector. It provides reservoir simulation software for the oil & gas industry. This tech winner has a 34.46% positive return thus far in 2023 and pays a decent 2.6% dividend.
The $623.56 million global software and consulting company has deep expertise to meet challenges and solve complex problems in the new energy industry. In the first quarter (Q1) fiscal 2024 (three months ended June 30, 2023), total revenue (annuity and perpetual software licenses) rose 29% year over year to $20.75 million.
CMG’s net income soared 81% to $6.9 million versus Q1 fiscal 2023. Its chief executive officer (CEO) Pramod Jain credits the strong market dynamics in the core business (traditional oil & gas) and energy transition for CMG’s impressive revenue growth and profitability at the start of the year. He added that the primary goal is to evaluate and capitalize on opportunities to create a further moat for CMG.
High-growth energy stock
Cameco continues to soar amid rising interest rates and stubborn inflation. At $46.85 per share, this energy stock outperforms with its +52.66% year-to-date gain. CCO is also a high-growth stock, as evidenced by the 243.03% overall return in 2.99 years. It also pays a 0.26% dividend.
The $20.28 billion company is one of the largest providers of uranium fuel. Its Blind River Refinery is the world’s largest commercial uranium refinery, producing uranium trioxide (UO3) powder. Cameco Fuel Manufacturing (CFM) supplies in-core reactor components for CANDU reactors globally.
Cameco’s Port Hope uranium conversion facility in Ontario produces uranium hexafluoride and uranium dioxide needed to produce fuel for light water and Candu-type, heavy water nuclear reactors. The high-grade reserves, low-cost operations and reliance of global utilities on nuclear fuel products are competitive advantages.
Winning investments
Alimentation Couche-Tard, Computer Modelling Group, and Cameco are excellent investment prospects for growth investors. Any or all three stocks are potential winners in 2023 for their inevitable breakouts and explosive returns.
