2 TSX growth stocks that can outperform the market in the long run

Be the First to Comment Read

2 TSX growth stocks that can outperform the market in the long run

More on:
2 TSX growth stocks that can outperform the market in the long run
Image source: © 2022 Kalkine Media® 

Highlights

  • The Canadian stock market is uncertain and volatile at the present moment as investors continue to worry about the interest rate hike expected in March.
  • Amid such volatile market situations, some investors who are patient to invest long-term can explore quality growth stocks that can outperform the market.
  • An oil and gas stock listed below galloped by nearly 670 per cent in the last one year.
  • A life insurance and wealth management firm saw its core earnings increase to C$ 1.51 billion in the latest quarter, which was up from C$ 1.45 billion in Q3 FY2020.

The Canadian stock market is uncertain and volatile at the present moment as investors continue to worry about the interest rate hike expected in March. Some market experts believe that the Bank of Canada is likely to raise the interest rate to curb inflationary pressure. 

The TSX benchmark index plunged by over three per cent in 2022. Amid such volatile market situations, some investors who are patient enough to invest long-term can explore quality growth stocks that can outperform the market.

Let us look at two such TSX growth stocks.

1.    Obsidian Energy Ltd (TSX: OBE)

Obsidian Energy generated C$ 65.5 million in cash flow operations in Q3 FY2021, which was up from C$ 34.8 million in Q3 FY2020.

The Calgary-based intermediate oil and gas company earned a net income of C$ 46.6 million in the latest quarter, which too was substantially up from a net loss of C$ 3.2 million incurred in Q3 FY2020.

Also read: Magna International (MG) & Birchcliff (BIR): 2 TSX value stocks to buy

The energy company, which has a return on equity (ROE) of 76.96 per cent, saw its stock close at C$ 8.62 apiece on Thursday, January 27, after hitting a new 52-week high of C$ 8.87 apiece.

Stocks of Obsidian Energy galloped by nearly 670 per cent in the last one year.

Obsidian Energy (TSX: OBE) stock performance

 Image source: © 2022 Kalkine Media® 

2.    Manulife Financial Corporation (TSX: MFC)

Manulife Financial Corporation recorded a net income of C$ 1.59 billion in the third quarter of fiscal 2021, as compared to C$ 2.06 billion a year ago.

On the other hand, the life insurance and wealth management firm saw its core earnings increase to C$ 1.51 billion in the latest quarter, which was up from C$ 1.45 billion in Q3 FY2020.

MFC scrips closed trading at a value of C$ 26.04 on Thursday, about six per cent below its 52-week high of C$ 27.675 (on March 18, 2021). The financial scrip jumped by roughly eight per cent year-to-date (YTD).

Bottomline

Quality growth stocks can likely help investors in earning significant returns in the long run. However, investors should ideally be patient enough to hold such stocks for the long term and be alert to gauge risks while investing.

Also read: Canadian National (TSX:CNR) sees Q4 diluted EPS soar 18%. A buy alert?

Disclaimer

Speak your Mind

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK