1 Growth Stock Down 8% to Buy Right Now

This growth stock may be down, but likely not for long, given its track record.

There are a lot of growth stocks flooding the headlines these last few months. However, there are still some growth stocks that remain under the radar. In fact, some may even offer major deals for investors looking for long-term growth.

That is why today, we’re going to look at a growth stock that is still up by 58% in the last year but down 8% since its 52-week highs and could easily start climbing once more.

Onex stock

The growth stock we’re talking about here is Onex (TSX: ONEX), one of the oldest and most successful private equity firms in Canada. Since coming on the scene in 1984, it has grown to become one of the largest and most diversified private equity firms globally, with a focus on investing in and building businesses across various sectors. 

Onex stock typically makes long-term investments in established companies with strong management teams and growth potential. The firm invests across multiple industries, including healthcare, industrials, technology, media, and financial services. Onex seeks to create value through operational improvements, strategic initiatives, and prudent financial management.

The company has a number of platforms, including its private equity, investment fund, and portfolio company approaches. These have all led Onex stock to drive strong performance thanks to its investment portfolio. And the sh as been the case over the last year a well.

What happened?

Quarter after quarter, Onex stock demonstrated strength. Onex has shown improvement in its financials, with net income increasing significantly compared to the previous quarter. This indicates the company’s business model is healthy and generating profits. In fact, it has outperformed the Canadian capital markets industry and the broader Canadian market over the past year.

Furthermore, Onex has been actively acquiring businesses and buying back its own shares. This can be a sign of confidence in the company’s future prospects and can lead to increased stock prices. So, after Onex stock dipped in 2022, we’ve now seen that the stock has since recovered significantly over the last year.

Why the drop?

Shares of Onex stock hit 52-week highs back in January and have since seen a fall back in share price. This comes from a few reasons, both based on the company as well as broader market factors.

Broadly speaking, the stock market was experiencing a correction where Onex stock was caught in the crossfire. Furthermore, Onex reported a decline in profits in their fourth-quarter earnings report compared to the same period in 2023. This likely led investors to perhaps not be so confident in the company’s short-term growth potential.

Even so, with first-quarter earnings on the way, it could be a great time for investors to consider Onex stock once more. The company has proven it can continue to grow even during these times of trouble. What’s more, analysts continue to be bullish about Onex stock. The company looks undervalued, with a strong track record and a new chief executive officer. So, despite seeing a recent profit decline, Onex stock could be a heavy hitter for long-term investors, especially in the next year.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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