The Bulls Are Coming: 2 of the Best Growth Stocks to Buy Now to Get Ahead

These two beaten-down growth stocks should be at the top of your watch list right now.

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The stock market rebounded impressively well in 2023, but there are still plenty of deals to be had by Canadian investors. Don’t let the fact that the S&P/TSX Composite Index is nearing all-time highs keep you on the sidelines. There’s no shortage of deals to be had on the TSX right now for investors looking for value.

The tech sector, in particular, came roaring back last year after a disappointing performance in 2022. Not all industries fared as well, though. The renewable energy sector is one example of an area of the Canadian stock market that has struggled over the past couple of years. 

In the short term, there may not be a whole lot to get excited about with beaten-down renewable energy stocks. Perhaps aside from sky-high dividend yields. It’s the long-term play that should excite investors. In a growing industry that’s still in its early days, now could be an incredibly opportunistic time to be loading up on green energy stocks.

With that in mind, I’ve reviewed two growth stocks that might not be at these discounted prices for much longer. If you’re looking to add some growth to your portfolio, these two companies should be on your watch list today.

Growth stock #1: Brookfield Renewable Partners

Anyone who’s looking for exposure to the growing renewable energy sector cannot go wrong with this company. 

At a $20 billion market cap, Brookfield Renewable Partners (TSX:BEP.UN) is not only a Canadian leader but a global one. The company boasts a wide-ranging portfolio of assets, providing its shareholders with diversified exposure to the sector that’s second to none.

The stock has been on a decline for most of the past three years. Excluding dividends, shares are down close to 50% since the beginning of 2021. Even so, the energy stock has managed to outperform the Canadian stock market’s return over the past five years.

Market-beating growth aside, Brookfield Renewable Partners can also be a major passive-income generator. Today’s dividend yield of a whopping 6% is partially due to the stock price’s decline in recent years. Still, not many growth stocks can claim a dividend yield anywhere near 6%.

Don’t miss your chance to load up on one of the top renewable energy stocks around. These bargain prices might not last for much longer.

Growth stock #2: Air Canada

Airline stocks haven’t fared much better over the past few years. But with the market as a whole on the rise, it might be time to consider investing in one of the few airline stocks with a track record of market-beating returns.

Canada’s largest airline, Air Canada (TSX:AC), has struggled to return to pre-pandemic levels. Shares are currently trading more than 60% below all-time highs, which were set in early 2020. That puts the stock down close to 50% over the past five years.

The airline industry is certainly a cyclical one — that’s no secret. Investors should also keep in mind that Air Canada has proven in the past that it’s been able to deliver market-beating returns. 

Long-term investors shouldn’t sleep on airline stocks today—especially not proven ones.

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 Nicholas Dobroruka has positions in Brookfield Renewable Partners. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

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