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Got $5,000? These Are 2 of the Best Growth Stocks to Buy Right Now

Upwards momentum
Image source: Getty Images

Written by Amy Legate-Wolfe at The Motley Fool Canada

Smart investors that have been doing this for years likely already have automated contributions in place. This might be to stocks themselves, or simply putting aside cash each paycheque towards investments to decide on a later date. But right now, that date has come when looking for growth stocks.

Today, however, I’m not looking at growth stocks that are already up. Instead, I’m looking for growth stocks that are overdue for a rebound. If you’re one of those smart investors putting cash aside month after month and are now sitting on about $5,000, these are the two I’d consider on the TSX today.

Nutrien

Nutrien (TSX:NTR) has long been a stellar choice for investors seeking out growth and income. It comes from the stable agriculture industry, providing crop nutrients to farmers, even during the pandemic. It’s also become an acquisition powerhouse, acquiring smaller crop nutrient providers in a still fractured industry.

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Yet during the last year the company experienced volatility. This came from sanctions against Russia which increased the cost of potash, leading to an explosion in Nutrien stock. After hitting those heights however, shares dropped as an economic downturn started about a year ago. Now, shares are down 24% in the last year as of writing.

That is why it’s a great time to consider the stock. We need food, and the world has now passed an eight-billion-person population. With less arable land, we need crop nutrients to provide food to these masses. And Nutrien stock remains a stable provider.

Today, you can pick up the company trading at just five times earnings. Plus, you can add on a dividend yield a 2.98% as of writing as well. And very soon, likely before the end of 2023, you’re bound to see shares recover.

Magna stock

Another growth stock to consider for its potential right now is Magna International (TSX:MG). The problem here is that Magna stock has been going through rough supply-chain disruptions for the last few years. It has a massive backlog it needs to catch up to, and this has led short-term investors to bow out.

However, long-term investors would be wise to consider this company. Magna stock continues to make partnerships with major car manufacturers to help them transition to a full-fleet of electric vehicles. It also continues to open new locations to create the products necessary for this transition. Even without EVs taken into consideration, all new vehicles have electronic components that Magna stock focuses on. So, there is both current and future growth on the way.

Yet again, the supply-chain disruptions have led to shares dropping by 9.4% in the last year alone. It trades at 1.37 times book value as well, holding a 3.54% dividend yield. With shares far off from their all-time highs, this stock is certainly one of the growth stocks due to recover at least in part by the end 2023. Though investors looking far beyond could be quite glad they picked up the stock at this share price in a few years’ time.

The post Got $5,000? These Are 2 of the Best Growth Stocks to Buy Right Now appeared first on The Motley Fool Canada.

Should You Invest $1,000 In Magna International?

Before you consider Magna International, you'll want to hear this.

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

The online investing service they've run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 21 percentage points. And right now, they think there are 5 stocks that are better buys.

See the 5 Stocks * Returns as of 4/18/23

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Magna International and Nutrien. The Motley Fool has a disclosure policy.

2023