3 Top Growth Stocks I’d Buy Right Now Without Any Hesitation

I am bullish on these three TSX stocks due to their multi-year growth potential.

| More on:

On Friday, the chairman of the Federal Reserve of the United States indicated that the economy remained strong while consumer spending was robust. He added that the bank would be cautious during future rate hikes. Amid these favourable comments, the global equity markets rose in the last two trading days, with the S&P/TSX Composite Index increasing by 1.26%. Amid improving investors’ sentiments, you can buy the following three growth stocks without hesitation.

goeasy

First on my list is goeasy (TSX:GSY), which has grown its revenue and adjusted EPS (earnings per share) at a CAGR (compound annual growth rate) of 17.7% and 29.5% for the last 10 years. Strong organic growth and strategic acquisitions have boosted its financials. Meanwhile, despite the challenging environment, the subprime lender has maintained its upward momentum this year. Its revenue and adjusted EPS grew by 22% and 62.4% in the first six months.

Its net charge-off rate declined by 10 basis points to 9% during the period. Meanwhile, its provisions for future loan losses decreased to 7.42% in the second quarter compared to 7.48% in the previous quarter. goeasy is also updating its products, pricing, and cost structures to lessen the impact of reducing the maximum allowable interest rate to an annual percentage rate (APR) of 35% from 47%.

Besides, the management expects its loan portfolio to reach $5.1 billion by 2025, a 60% growth from its June 30th levels. Amid the expansion of its loan portfolio, the management hopes to grow its revenue at an annualized rate of 18.5% through 2025 while delivering a return on equity of over 21% annually. Notably, the company trades at 1.5 times its projected revenue for the next four quarters and offers a forward dividend yield of 3.04%. Considering all these factors, I am bullish on goeasy.

WELL Health Technologies

Another growth stock I am bullish on would be WELL Health Technologies (TSX:WELL), a tech-enabled healthcare company that empowers healthcare professionals to offer omnichannel services. Meanwhile, the company has continued to drive its financials. In the June-ending quarter, the company’s revenue and adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) grew by 21.8% and 5.1%, respectively. The digital healthcare company had over one million patient visits and over 1.5 million patient interactions during the quarter.

After reporting its second-quarter performance, WELL Health’s management expects its 2023 revenue to reach the upper end of the earlier announced guidance of $740-$760 million. The management also expects its adjusted EBITDA to increase by 10% from 2022 levels. The company offers a multi-year growth potential due to the growing adoption of telehealthcare services, innovative product development, and continued acquisitions. However, WELL Health trades at 1.2 times its projected sales for the next four quarters, which looks cheap considering its growth prospects.

Shopify

Shopify (TSX:SHOP), which provides essential omnichannel infrastructure for all businesses, would be my final pick. After a challenging last year, the company is witnessing a healthy buying this year, with its stock price rising by around 63%. In the first two quarters of this year, the company’s revenue grew 28.1%. Growth across both its segments, subscription and merchant, drove its top line. Its net losses also declined from $2.68 billion to $1.24 billion, which is encouraging.

Meanwhile, the broader shift towards an omnichannel selling model has created a multi-year growth potential for Shopify. Amid the growing addressable market, the omnichannel service provider is working on launching innovative product offerings, growing its customer base, and expanding its products’ reach, which could continue to drive its financials in the coming years. Despite the recent upward momentum in its stock price, Shopify trades at a considerable discount compared to its 2021 highs, offering an excellent entry point for long-term investors.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.

More on Investing

up arrow on wooden blocks
Dividend Stocks

2 High-Yield Dividend Stocks You Can Buy and Hold for a Decade

Restaurant Brands International (TSX:QSR) and another high-yield dividend payer are worth banking on for the long haul.

Read more »

hand stacks coins
Investing

Where Will Brookfield Corporation Stock Be in 10 Years?

Brookfield (TSX:BN) did well last decade. Will it thrive in the next one?

Read more »

think thought consider
Dividend Stocks

Restaurant Brands International: Buy, Sell, or Hold in 2025?

Investors should look more closely at QSR stock and potentially buy on the recent weakness.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Maximizing Returns with Your 2025 TFSA Contribution Room

The TFSA is a top tool for maximizing investment returns. Here are two stocks that could be a great buy…

Read more »

woman retiree on computer
Dividend Stocks

Should You Buy Telus Stock at $20?

Down 40% from all-time highs, Telus is a beaten-down TSX dividend stock that trades at a discount to consensus price…

Read more »

top TSX stocks to buy
Dividend Stocks

Here’s Exactly How $15,000 in a TFSA Could Grow Into $200,000

Canadians with sizeable TFSA balances today have utilized the full potential of the investment vehicle.

Read more »

clock time
Investing

Building Generational Wealth: Why Now Is Still the Time to Invest in Canadian Stocks

Here's why Canadian stocks should still be the core of your investment portfolio.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

The 1 Canadian Stock I’d Buy and Hold Forever in a TFSA

Don't get complicated. Consider this Canadian stock as a long-time buy.

Read more »