Yahoo Finance 2 Canadian Growth Stocks to Buy and 1 to Sell
Written by Adam Othman at The Motley Fool Canada
Choosing the right stock to sell from your portfolio can be more challenging than identifying new stocks to add, especially if there is no clear pattern of decline or any obvious danger signs. But it’s a critical element of keeping your portfolio healthy, just as finding the right stocks to buy is.
Right now, two growth stocks should be on your radar as potential buys, and one you may consider selling if it’s in your portfolio.
To buy: FirstService stock
FirstService (TSX:FSV) is the largest property manager in North America, overseeing a massive portfolio of over 9,000 communities, including high-rise condos and single-family HOAs. The other half of the company’s business is outsourced property services like roofing, flooring, painting, etc.
The company has grown rapidly over the years, and the stock has been a powerful grower since its inception in 2015, returning over 500% to investors in less than 10 years. The bull market trend hit a snag in 2021, but the stock is in recovery mode and growing at a decent pace.
The real estate company’s position in the industry, diversified business model, healthy financials, and powerful organic growth make it a compelling growth pick. It would be best to hold the stock long term to benefit from its capital appreciation potential and dividends. However, the latter is not an impressive return dimension because of a low dividend yield.
To buy: NexGen Energy stock
Nuclear power is going through a revival phase around the globe, with 60 new plants under construction and several others planned for the future. Consequently, uranium demand is increasing, and companies like NexGen Energy (TSX:NXE) will ride this positive trend to new heights.
NexGen is more than just a uranium mining stock – it’s one of Canada’s most promising uranium producers.
The uranium producer has an impressive portfolio of assets, including Rook-I in Saskatchewan, which the company fully owns. The company has secured lucrative futures contracts, and Rook-I’s production supply is already booked.
This and other strengths (like low-cost production) have allowed the stock to rise 133% in the last 12 months, and there are no signs that the growth might slow down anytime soon.
To sell: WSP Global stock
It’s important to understand that WSP Global (TSX:WSP) is one of the most promising engineering companies in the world, with a compelling portfolio of professionals and services spread across the globe.
Its growth has been a good reflection of the company’s potential, but a short-seller is currently targeting it. The same short-seller that published a report on Lightspeed, among others, caused the stock to dip to brutal depths.
The short-seller has also published a report on WSP Global, and the focal point is financial strain. It has already caused the stock to dip but has not resulted in a full-scale sell-off yet. It would be smart to look into the report and the company’s financials to make an informed decision about the company before the market sentiment does that for you.
We just revealed five stocks as “best buys” this month … join Stock Advisor Canada to find out if NexGen Energy made the list!
Foolish takeaway
The two stocks that should be on your radar are both long-term picks, and given enough time (and an adequate amount of capital), they may push your portfolio to new heights. But it’s important to understand that while both companies have strong fundamentals and supportive market conditions, they may still be vulnerable to market sentiment.
The post 2 Canadian Growth Stocks to Buy and 1 to Sell appeared first on The Motley Fool Canada.
Should you invest $1,000 in Firstservice Corporation right now?
Before you buy stock in Firstservice Corporation, consider this:
The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Firstservice Corporation wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.
Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $15,578.55!*
Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 32 percentage points since 2013*.
See the 10 stocks * Returns as of 3/20/24
More reading
Can You Guess the 10 Most Popular Canadian Stocks? (If You Own Them, You Might Be Losing Out.)
How to Build a Bulletproof Monthly Passive-Income Portfolio in 2024 With Just $25,000
Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends FirstService, Lightspeed Commerce, and WSP Global. The Motley Fool has a disclosure policy.
2024
