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While many TSX stocks have seen positive performance, there are select growth stocks that could surprise investors with even more upside this year. Whether due to valuation multiple re-rating, better-than-expected earnings growth, or both, these TSX growth stocks have the potential for considerable appreciation. Let's delve into four TSX-listed companies poised for potential upside.
Trisura Group (TSX:TSU)
Trisura Group has demonstrated impressive growth over the past five years, with its stock up 531%. Despite recent volatility, the company's prospects appear promising. Specializing in specialty insurance in Canada and expanding its fronting models in both Canada and the U.S., Trisura reported a 16.5% increase in revenues and an 11.5% rise in normalized earnings per share in the first quarter of 2024. With a normalized return on equity of 20%, surpassing most industry peers, Trisura currently trades at a discount compared to similar U.S. peers. Continued strong performance could lead to both earnings growth and an enhanced stock valuation.
Sylogist (TSX:SYZ)
As a small-cap technology firm undergoing a turnaround strategy, Sylogist provides specialized enterprise and planning software for stable sectors like school districts, municipalities, and non-profits. With a new CEO driving initiatives to bolster the sales force, enhance software offerings, and prioritize customer service, Sylogist has been hitting growth targets consistently. While the stock has already seen an 18% increase in 2024, sustained execution of its strategy could lead to further upside as the valuation aligns with peers.
Calian Group (TSX:CGY)
Despite a lackluster start to 2024, Calian Group presents an opportunity for potential re-rating. Operating across diverse industries including healthcare, training/planning, satellite and nuclear technologies, and cybersecurity, Calian has demonstrated impressive revenue and EBITDA growth rates over the past five years. Although recent results fell short of expectations, the company is guiding for significant EBITDA growth in 2024. With an enterprise value-to-EBITDA ratio of eight, Calian could see a surge if it meets its targets.
Goeasy (TSX:GSY)
Goeasy has emerged as one of Canada's leading non-prime lenders, capitalizing on economic trends and evolving market dynamics. As traditional banks tighten lending policies, goeasy stands to benefit from an expanding pool of near-prime customers. The company's strategic expansion into new markets and products, such as the recent addition of a credit card product, underscores its commitment to growth. Despite a 270% increase in the past five years and a 20% rise this year, goeasy still trades at a modest 11 times forward earnings, presenting an attractive opportunity given its robust growth prospects.
These four TSX growth stocks offer compelling potential for upside in 2024. With promising growth trajectories, strong fundamentals, and strategic initiatives underway, investors may find opportunities for significant appreciation in these companies as they continue to execute their respective strategies and capitalize on market opportunities.
