The end of the 30-day pause to the 25% tariffs is coming closer and closer, and Canadian investors can likely experience choppy waters the closer we get to it. There is nothing to do but wait if you want to find out whether the tariff wars will continue weighing on the stock market as the year goes on.
Even if bad times are to come, smart stock market investing is not about timing recessionary environments. Events like these can be like a flip of the coin. Sure, these black swans can have a significant impact in the short term, but seasoned investors focus on the long-term outlook when identifying excellent investment opportunities.
The tariff situation will have more of a bearing in the coming weeks. However, I feel that it might be better for growth-seeking investors to focus on stocks that can potentially deliver substantial long-term upside. Here are three growth stocks to keep on your radar right now.
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Lundin Gold
Lundin Gold (TSX: LUG) is a $10.50 billion market capitalization Vancouver-based mining company that operates one of the world’s highest-grade gold mines located in Ecuador. If you know anything about volatile markets or a market that seems to be heading toward a recession, you will understand that people panic and put more money toward gold. Being a safe-haven asset, gold historically provides investors a hedge against economic instability.
Stock market investors who don’t want to take their money out of the market but want to hedge their bets often consider gold mining stocks. When gold prices go up, companies with significant gold-related operations tend to benefit.
LUG stock has been posting record-breaking financial performances. The September 2024-ending quarter saw its year-over-year revenue grow by 53%, and its adjusted earnings grew by almost 200%. It has a new expansion program underway, and LUG has expansion expected for its process plant to increase output further.
Kinross Gold
Kinross Gold (TSX: K) is a bigger name in the global gold-mining industry. The Toronto-based $19.84 billion market capitalization giant has several high-quality gold mining operations across the U.S., Canada, Mauritania, Chile, and Brazil. Its share price has been soaring.
As of this writing, it trades for $16.06 per share, up by almost 124% from its 52-week low. The third quarter of fiscal 2024 saw the company’s year-over-year revenue grow by 30%, and its adjusted net profit grew by more than double in the same period. Its US$414.6 million in free cash flow last quarter also helped the company pay down US$350 million in debt. The stock looks well-positioned to deliver significant growth.
Aritzia
Aritzia (TSX: ATZ) is not like the other two. Aritzia is a $6.57 billion market capitalization stock operating in the Canadian retail sector. A retail stock might seem like an odd one in the company of gold-mining stocks in the same discussion. However, this Vancouver-based lifestyle apparel brand might be a good fit to consider.
The Canadian women’s clothing retailer has had a few spectacular quarters recently since its expansion further and further into the U.S. market. The stock has consistently delivered double-digit earnings and revenue growth since fiscal 2016. Its efficient supply chain and presence in high-growth markets only seem to be doing more favours it.
As of this writing, it trades for $58.20 per share. While down 20% from its 52-week high, its thriving online sales, growing boutiques in the US, and expanded omnichannel opportunities can accelerate its growth for the foreseeable future.
Foolish takeaway
It’s important to remember that stock market investing is inherently risky. Trying to time the market is an impossible bet to get right 100% of the time. You can identify stocks with the best possible chances of delivering the kind of returns that align with your financial goals — short term or long term.
While not without risks, Lundin Gold, Kinross Gold, and Aritzia stock could be good investments to consider for stocks to fuel wealth growth through long-term and significant capital gains.
