Yahoo Finance These 3 Growth Stocks Are on Sale and Set to Surge
Written by Demetris Afxentiou at The Motley Fool Canada
Investors, especially those who are newer to investing, often focus on the appeal of income-earning stocks. While there’s nothing wrong with that view, it does leave out several great growth-focused options that would do well in any portfolio. Even better, many of those growth stocks are on sale and set to surge.
If you’re wondering which growth stocks are on sale right now, here’s a trio of options to consider buying now.
Have you considered Cargojet?
Cargojet (TSX:CJT) is a stock that most investors are aware of. For those unfamiliar with Cargojet, the company provides both domestic and international cargo service across major Canadian markets, the U.S., Europe, and Mexico.
When the pandemic hit, Cargojet’s stock price shot into the stratosphere as everyone embraced online shipping instead of brick-and-mortar sales. But since shoppers are now back in stores, the stock has taken a dip as a result of lower shipping numbers.
By way of comparison, as of the time of writing, Cargojet trades at $113 per share. Year to date, the stock is down 5%, but over the trailing two-year period, that drop extends to a whopping 37%.
Now, throw in the insane inflation we’ve seen over the past year, which has forced consumers to scale back purchases and that shorter-term dip seems reasonable.
Here’s the thing, though: even with that recent dip, the longer-term fundamentals around Cargojet are solid. And despite posting a net loss of $34.9 million in the most recent quarter, pundits see the stock as full of long-term potential.
Part of that potential stems from long-term deals Cargojet has with among others, Amazon. And as the market recovers from inflationary pressures, so too will Cargojet’s stock price.
That fact, along with its defensive appeal and 1.09% dividend yield, makes Cargojet a great growth stock on sale and set to surge.
What about Shopify?
Another stock that surged heavily during the pandemic is Shopify (TSX:SHOP). The online retail platform even joined the ranks of other well-known tech titans in becoming a verb to use in conversations.
The real power behind Shopify stems from the ability to quickly add bolt-on services needed by the retailer. This could be anything from fulfillment, inventory processing, support, or even analytics.
And as with everything tech-related this year, Shopify has jumped onto the AI bandwagon. The company offers an increasing number of plug-in solutions that provide AI-enhanced abilities. This includes image generation, chatbots, analytics, and copywriting.
As of the time of writing, Shopify trades at just over $106, down from its 52-week high of $123.20. That pullback represents an opportunity for long-term investors who have an appetite for some risk to act.
And prospective investors should note that Shopify is still down well over 20% over its pandemic-era highs.
Who wants growth (along with a tank of gas)?
One of the final growth stocks to consider buying right now is Alimentation Couche-Tard (TSX:ATD). Couche-Tard is one of the largest convenience store and gas station operators on the planet.
Specifically, Couche-Tard has over 14,000 locations scattered across two-dozen countries. It’s a very defensive business model, which provides a stable revenue stream while providing a necessary service.
Turning to growth, Couche-Tard has taken an aggressive stance that has helped the company expand rapidly over the years. This includes expanding into complementary verticals such as EV charging and car washes.
That’s not all. Couche-Tard has developed a knack for integrating new acquisitions into its growing portfolio and realizing synergies. That growth, in turn, allows the company to seek out additional acquisitions while paying out a growing dividend.
Couche-Tard’s yield works out to just 0.91%, but it is well-covered and continues to grow at an impressive rate.
As of the time of writing, Couche-Tard trades near flat year to date. Over a longer two-year period, the stock is up an incredible 39%.
In short, as with the other stocks mentioned above, it’s hard to ignore Couche Tard when evaluating which growth stocks are on sale right now.
Bottom line
In my opinion, one or all of the above stocks should be part of a well-diversified portfolio.
The post These 3 Growth Stocks Are on Sale and Set to Surge appeared first on The Motley Fool Canada.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Demetris Afxentiou has positions in Shopify. The Motley Fool has positions in and recommends Alimentation Couche-Tard, Cargojet, and Shopify. The Motley Fool recommends Amazon. The Motley Fool has a disclosure policy.
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