Tech stocks are off to the races again, with mega-cap tech leading the pack higher once again. And though the bears may be a tad sour, calling for some sort of plunge over the medium term, I’d argue that serious investors should think about creating a watchlist alongside desired entry prices.
Sure, today’s market prices may be a tad overheated, especially when it comes to the U.S.-based mega-cap tech titans. That said, there are other corners (think lower-tech plays or less-obvious plays on artificial intelligence, or AI) that are reasonably priced and are primed to do well, even if we are dealt an ugly market correction between now and year’s end. Will the following watch list-worthy growth stocks do well if Canada runs into recession territory this year? It’s hard to tell. Regardless, I view the following growth plays as poised for solid results over the next five years (and beyond).
So, if you’ve got a long-term horizon and seek growth, the following should be on your radar this February:
Nuvei
First up, we have Canadian fintech firm Nuvei (TSX: NVEI), which has really spilled since it hit its all-time high of over $170 per share way back in late 2021. The stock crashed over a nearly two-year span, shedding almost 90% of its value from peak to trough. More recently, shares have begun to show signs of life, now up over 67% from their October 2023 lows.
Though the $4.5 billion mid-cap tech play may be too risky and choppy for the bravest of young investors, I’d argue shares of NVEI are worth keeping on one’s radar in case the firm pulls the curtain on an intriguing innovation. Indeed, the company has been teaming up with some heavyweight champs in the tech scene over the past several quarters. I think such deals could be a boon for growth. Either way, Nuvei seems like an under-the-radar growth gem that has growth levers it can pull.
Aritzia
Aritzia (TSX: ATZ) is a better option for investors seeking growth in the low-tech universe. The women’s clothing company has been in recovery mode since bottoming out just a few months ago. Up more than 6% on Friday’s session, Aritzia stock seems to be back, and I’d argue the run could have legs as we head into the spring months.
At the end of the day, Aritzia sells the fashions that many consumers want. And as their disposable income increases, so too will the company’s top and bottom lines. While Aritzia is a discretionary, I think it’s been beaten down ahead of a recession that may never materialize. All considered, ATZ stock looks like a fantastic growth play if you find the firm’s fashions fabulous. Additionally, it’s a mid-cap that has plenty of room on the runway to sprint!
Restaurant Brands International
Last but not least, we have Restaurant Brands International (TSX: QSR), a growthy way to play some of the most timeless fast-food brands out there. Burger King has been picking up speed in recent quarters, helping fuel a push toward all-time highs, just north of $106 per share.
I think higher highs are ahead as Burger King, Tim Hortons, and Popeyes Louisiana Kitchen begin to really pick up momentum in their respective fast-food sub-industries. Moving ahead, I’d look for the dividend (yielding 2.76%) to keep on growing at a stellar pace.
