When most new investors come across the term “growth stocks,” it isn’t surprising for them to think of Canadian tech stocks. For a long time, tech stocks led the S&P/TSX Composite Index to new all-time highs. However, the tech bubble bursting a few years ago has made investors more cautious about investing without doing their due diligence.
This does not mean there aren’t any growth stocks in the tech sector that you can count on for good returns. However, there are more sectors to consider. The retail and waste management industries seem like unlikely segments of the economy offering high-growth opportunities to investors, but it’s very much a possibility for those who know where to look.
Today, I will discuss two TSX growth stocks, one from each of these industries, to help you broaden your horizons.
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Dollarama
Dollarama (TSX: DOL) is the company that owns and operates Canada’s largest chain of discount retail stores. It might seem ironic that the stock behind a company offering everyday items at lower, fixed price points is a growth-focused investment, but the logic makes sense. When the economy isn’t doing well, and people don’t have much to spend, they look for cost-cutting measures. Getting their necessities at lower prices is an opportunity they’ll jump on even when the economy is doing well.
A business that can generate significant revenues regardless of economic cycles can be a solid investment. As of this writing, Dollarama stock trades for 173.36, down by 17% from its 52-week high. I think it can be a good opportunity to invest at a discount and secure wealth growth through capital gains as the stock recovers to a better valuation.
Secure Waste Infrastructure
Secure Waste Infrastructure (TSX: SES) is the perfect example of the saying that one man’s waste is another man’s treasure. SES is an integrated waste management and energy infrastructure company that operates in Western Canada, and it even has business south of the border in North Dakota.
The company primarily provides environmentally responsible fluids and solids solutions to the energy industry. Considering that a significant portion of its revenue comes through long-term contracts, it has the kind of consistent cash flow that reduces its exposure to volatile commodity prices. The dependable revenue base lets the company reinvest in operations and expand further.
As of this writing, SES stock trades for $22.65 per share. Close to its 52-week high, it still looks like an attractive investment to consider for the long run at current levels.
Foolish takeaway
Global equity markets have become increasingly volatile this year, particularly after the U.S. and Israel started a war with Iran and the subsequent chaos in the Middle East. Given the uncertain outlook, typical growth stocks might not be the best investments to consider right now.
However, these two stocks look well-positioned to continue delivering outstanding returns to investors, even in a market as volatile as this. I would not call these two risk-free investments, but DOL stock and SES stock seem like good investments to consider in this environment.
