What exactly is a market-beating growth stock? It’s when a company holds rapid earnings or revenue growth potential, often outpacing the broader market. These companies are typically in expanding industries, reinvesting their profits to fuel further growth. Plus, these stocks have the potential to deliver impressive long-term returns. Investors flock to them, hoping to ride the wave of innovation and market dominance, which can lead to skyrocketing stock prices. However, while growth stocks can be exciting, these also come with a bit more risk. That’s because the value is often based on future potential rather than current profits. So, is there a less-risky option?
Why now?
Now could be a great time to start hunting for market-beating stocks that are just making a comeback. After all, the stock market tends to be cyclical, and when certain companies or sectors hit a rough patch, these can often bounce back in a big way. The stocks may have experienced some turbulence, whether due to economic shifts, industry changes, or company-specific challenges. But if the stocks have strong fundamentals, these could be poised for growth once again. Spotting these rebounders early can give you a front-row seat to the potential upside.
What makes this even more enticing is that these stocks often come with a lot of untapped potential. As market conditions stabilize or improve, these companies might regain investor confidence and start ramping up again. When everyone else is still focused on the stars that have already shot up, you could be getting in on the next big thing before it makes headlines.
GFL stock
GFL Environmental (TSX:GFL) is a Canadian waste management company that’s been making waves with its “Green for Life” philosophy. It handles everything from trash collection to recycling and environmental remediation, offering a full suite of services to keep cities and businesses clean and green. What makes GFL interesting is its rapid growth, becoming one of the largest environmental services companies in North America.
What really sets GFL apart is its aggressive approach to scaling up. It’s been snapping up smaller waste companies left and right, which helps them quickly grow market share. This fast expansion might raise a few eyebrows when it comes to their debt levels, but GFL is betting big on future profitability by becoming a dominant player in the waste management industry. So, if you’re looking for a stock with both growth potential and a commitment to greener practices, GFL could be one to watch!
Looking promising
GFL is showing some serious promise for growth in the coming years. With its latest financial results exceeding expectations and an increase in full-year guidance for 2024, the company is positioned well to continue expanding its footprint. It’s seen solid revenue growth and improved margins, particularly in its core Solid Waste business, where it’s focused on price-led organic growth and shedding lower-margin contracts. This focus on efficiency, combined with ongoing acquisitions that are generating additional revenue, is setting GFL up for further success.
What’s particularly exciting about GFL is the focus on the future, especially in emerging areas like renewable natural gas (RNG) and extended producer responsibility (EPR). The company’s management team has shown confidence in their ability to continue driving value for shareholders, even hinting at potential asset sales to reduce debt and buy back shares.
Bottom line
GFL stock could be a growth stock with market-beating potential because it’s growing fast and making smart moves. With its impressive revenue gains, boosted 2024 guidance, and focus on cutting low-margin work, GFL is setting itself up for solid profitability. Plus, the company is tapping into emerging markets like renewable natural gas, which adds an exciting green growth angle. Throw in management’s savvy approach to acquisitions and possible share buybacks, and GFL is positioning itself to outpace the broader market while keeping sustainability at the forefront!
