3 Growth Stocks About to Take Off

These three growth stocks surged by double digits in the last month, but more is planned for the future, so say management.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published December 5, 2023 4:50 pm EST

There are some strong growth stocks on the TSX today. Many of these remain under the radar, even as larger investment pushes into these stocks. This is why today, it’s time to wipe off the dust and consider these three growth stocks again — especially as we head into 2024, finally ready for a year filled with growth.

Stantec

Stantec (TSX: STN) shares have shown immense growth in the last month and during the last year. Stantec stock rose 17% in share price after strong earnings. The company produced a record third quarter, which also led to an increase in its future outlook.

This was followed up by the announcement of several announcements. This included an acquisition in Germany, which would create even more industrial properties for its global portfolio. Then it announced a new facility to make lithium-ion batteries in British Columbia, the largest in Canada. Finally, a share-buyback program that led to an increase in share price past $100.

So, with shares up, yet still trading at just 1.77 times sales, and with plenty of cash to cover its debts, there definitely looks to be reason in bulk to pick up Stantec stock.

Constellation Software

Constellation Software (TSX: CSU) has also continued its slow and steady rise. In fact, the essential software company is now past the $3,000 mark. But it has yet to slow down. Shares are now up 53% in the last year and 14% in the last month alone.

This comes perhaps for a few reasons. First, the company continued to see growth year over year during its most recent quarterly report. What’s more, it’s continued to acquire more essential software companies to push forward even more growth. This is all on top of the stable and solid growth we’ve seen — not just in the last year but the last decade.

So, as Constellation stock pushes past all-time highs, any dip would do for you to jump back in on this stock. The company’s strategy simply is unmatched, with a management team that will push even more growth for this stock in the years to come.

Gildan Activewear

Finally, Gildan Activewear (TSX: GIL) looks like another of the growth stocks set to keep on climbing. Shares of Gilidan stock surged after strong earnings led to a major bump in share price. Net sales were up 2% to $870 million for the quarter, with its cash flow from operations increasing to $305 million.

Gildan stock also continued its buyback program, with this and dividends returning $113 million to shareholders during the last quarter. So, while the company then went on to update its full-year guidance to the lower end of its revenue and earnings per share guidance, it still expects free cash flow of over $425 million.

Gildan stock remains strong, despite being a retail company in a very difficult period. And it’s still trading in value territory even after a surge in share price. Shares are up 11% in the last month and 27% in the last year. Yet it still trades at just 14.16 times earnings and 2.1 times sales, with just 56% of equity needed to pay off debts. Now, consider these three growth stocks, and you could have an incredible 2024.