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3 Growth Stocks About to Take Off

Money growing in soil , Business success concept.
Image source: Getty Images

Written by Amy Legate-Wolfe at The Motley Fool Canada

There are some strong growth stocks on the TSX today. Many of these remain under the radar, even as larger investment pushes into these stocks. This is why today, it’s time to wipe off the dust and consider these three growth stocks again — especially as we head into 2024, finally ready for a year filled with growth.

Stantec

Stantec (TSX:STN) shares have shown immense growth in the last month and during the last year. Stantec stock rose 17% in share price after strong earnings. The company produced a record third quarter, which also led to an increase in its future outlook.

This was followed up by the announcement of several announcements. This included an acquisition in Germany, which would create even more industrial properties for its global portfolio. Then it announced a new facility to make lithium-ion batteries in British Columbia, the largest in Canada. Finally, a share-buyback program that led to an increase in share price past $100.

So, with shares up, yet still trading at just 1.77 times sales, and with plenty of cash to cover its debts, there definitely looks to be reason in bulk to pick up Stantec stock.

Constellation Software

Constellation Software (TSX:CSU) has also continued its slow and steady rise. In fact, the essential software company is now past the $3,000 mark. But it has yet to slow down. Shares are now up 53% in the last year and 14% in the last month alone.

This comes perhaps for a few reasons. First, the company continued to see growth year over year during its most recent quarterly report. What’s more, it’s continued to acquire more essential software companies to push forward even more growth. This is all on top of the stable and solid growth we’ve seen — not just in the last year but the last decade.

So, as Constellation stock pushes past all-time highs, any dip would do for you to jump back in on this stock. The company’s strategy simply is unmatched, with a management team that will push even more growth for this stock in the years to come.

Gildan Activewear

Finally, Gildan Activewear (TSX:GIL) looks like another of the growth stocks set to keep on climbing. Shares of Gilidan stock surged after strong earnings led to a major bump in share price. Net sales were up 2% to $870 million for the quarter, with its cash flow from operations increasing to $305 million.

Gildan stock also continued its buyback program, with this and dividends returning $113 million to shareholders during the last quarter. So, while the company then went on to update its full-year guidance to the lower end of its revenue and earnings per share guidance, it still expects free cash flow of over $425 million.

Gildan stock remains strong, despite being a retail company in a very difficult period. And it’s still trading in value territory even after a surge in share price. Shares are up 11% in the last month and 27% in the last year. Yet it still trades at just 14.16 times earnings and 2.1 times sales, with just 56% of equity needed to pay off debts. Now, consider these three growth stocks, and you could have an incredible 2024.

The post 3 Growth Stocks About to Take Off appeared first on The Motley Fool Canada.

Should You Invest $1,000 In Constellation Software?

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Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in November 2023... and Constellation Software wasn't on the list.

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See the 5 Stocks * Returns as of 11/14/23

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Software and Gildan Activewear. The Motley Fool has a disclosure policy.

2023