All-Time Highs, Next-Level Gains: 2 Top TSX Growth Stocks to Watch

These growth stocks may be at all-time highs, but that’s not just over the last year. To the contrary, these are ones that should continue to climb and climb.

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When it comes to growth stocks, it can be hard to convince investors that all-time highs are the best time to buy. After all, these growth stocks aren’t exactly providing a deal. That being said, they could be if you look at these companies in the bigger picture.

That’s why today we’re going to look at two growth stocks at all-time highs that are still top stocks to watch. So let’s get into it with Canadian Pacific Kansas City (TSX:CP) and Brookfield Asset Management (TSX:BAM).

CP stock

CP stock has shown remarkable financial performance, especially after the completion of its merger with Kansas City Southern. For Q1 2024, CP reported revenue of $2.3 billion, representing a 32% increase year over year. The merger has expanded the company’s rail network, creating the first rail network linking Canada, the United States, and Mexico. This strategic expansion has not only increased the company’s freight capacity but also improved operational efficiency.

What’s more, the outlook for CP stock is highly positive. The North American trade corridor created by the merger is expected to drive significant growth in freight volumes, particularly in automotive, grain, and intermodal sectors. The company is also focused on leveraging its expanded network to offer more efficient and reliable services, which should attract new customers and increase market share. 

Analysts project that CP will achieve a revenue growth rate of 15 to 20% annually over the next few years, driven by synergies from the merger and the increasing demand for cross-border trade. So with shares near all-time highs, it still looks like a solid buy.

BAM stock

Another strong option is BAM stock. BAM is a global leader in alternative asset management, with a strong track record of financial performance. In Q1 2024, BAM reported revenues of $21.5 billion, up 22% from the previous year. The company’s net income for the quarter was $1.8 billion, reflecting a 19% increase year over year. BAM’s growth is driven by its diversified portfolio, which includes real estate, infrastructure, renewable power, and private equity.

What’s more, BAM’s future prospects are robust, given its strategic focus on acquiring high-quality assets and generating stable, long-term cash flows. The company is well-positioned to benefit from the growing demand for alternative investments, which offer attractive returns in a low-interest-rate environment. 

BAM’s strong capital-raising capabilities and global reach provide it with a competitive edge in identifying and capitalizing on investment opportunities across various sectors. Analysts expect BAM to continue delivering strong financial performance, with projected revenue growth rates of around 12 to 15% annually over the next few years. So even though it’s also near all-time highs, it’s another strong stock to pick up right now, and with a 4% dividend yield.

Bottom line

Both CP stock and BAM stock are at all-time highs, but exhibit strong growth potential. CP stock’s expanded rail network and strategic positioning in North American trade, combined with BAM stock’s diversified investment portfolio and capital-raising prowess, provide solid foundations for continued success. Investors seeking growth opportunities on the TSX should consider these two companies, given their robust financial performance and promising outlooks.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Asset Management and Canadian Pacific Kansas City. The Motley Fool has a disclosure policy.

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