Canadian stocks continue to lag their American counterparts thus far in 2024. As of this writing, the TSX Composite Index is down 0.19% year to date with 7 of 11 primary sectors in negative territory. The three major indexes on Wall Street have positive gains, led by Nasdaq’s +5.2%.
The TSX is on edge as long as the Bank of Canada remains unsure when to start interest rate cuts. The policymakers want to see concrete evidence that inflation is approaching their 2% target.
Meanwhile, if a sell-off happens, you can seize the opportunity to buy Precision Drilling (TSX: PD), Cameco (TSX: CCO), and Stingray Group (TSX: RAY.A). All three are unstoppable growth stocks defying market headwinds. Furthermore, market analysts’ low-price targets in one year exceed the current share prices.
Oil & gas drilling
Precision Drilling has a head start versus sector peers with its 19.8% year-to-date gain. At $86.19 per share, this growth stock’s overall return in 3 years is 179.7%, a compound annual growth rate (CAGR) of 40.8%. The $1.2 billion drilling rig contractor had a productive year.
Its President and CEO, Kevin Neveu, said, “Precision’s Canadian drilling business in 2023 displayed high utilization, expanded profitability, and deeper relationships with our customers.” Besides completing fleet upgrades upon customers’ requests, the company secured multiple term contracts throughout 2023.
The average in Q4 2023 rose 44% to 23 versus Q4 2022. For the full year 2023, revenue and cash provided by operations increased 19.8% and 111.1% year over year respectively to $1.9 billion and $500.5 million. Net earnings reached $289.2 million compared to the $34.3 million net loss in 2022.
Uranium miner
Cameco’s impressive financial results in 2023 show in the stock’s performance. At $60.21 per share, the year-to-date gain is 5.4%, and the trailing one-year price return is 60.1%. The $1.1 billion uranium miner and largest provider of uranium fuel also pays a modest 0.19% dividend.
In 2023, revenue and net earnings climbed 39% and 306% respectively to US$2.6 billion and US$361 million versus 2022. Notably, cash provided by operations jumped 126% year over year to US$688 million.
Another business highlight was the acquisition of Westinghouse (49% ownership stake) in a strategic partnership with Brookfield Asset Management. Its President and CEO, Tim Gitzel, said Cameco will continue to transition to a tier-one cost structure and position the company for sustainable growth.
Communications services
The communications services sector is down nearly 1%, but Stingray is up 26.7%. Also, the current share price of $7.26 is 50.2% higher than a year ago. The $499.5 million media and entertainment company also pays a 4.07% dividend. Stingray’s latest financial report showed better-than-expected results.
In the first three quarters of fiscal 2024 (nine months ending December 31, 2023), revenue and net income rose 6.8% and 26.9% year over year respectively to $261.7 million and $32.5 million.
Stingray has cemented its position in music and video content distribution, business services, and advertising solutions. Its explosive growth should continue as it trailblazes the retail media advertising industry with a technology platform for large retailers.
Strong buys on weakness
Consider buying Precision Drilling, Cameco, and Stingray if the market declines. The stocks have shown stability against massive headwinds, so any retreat is temporary because their growth is unstoppable.
