Kalkine Media explores growth stocks to explore this quarter

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 Kalkine Media explores growth stocks to explore this quarter
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Highlights

  • For Q2 2022, the cash flow for Tourmaline Oil Corp. was recorded at C$ 1.35 billion.
  • In October, Vermilion announced its ownership acquisition of additional common shares of Coelacanth Energy.
  • In Q2 2022, the sales for Boyd Group Services Inc. increased to US$ 612.8 million.

Generally, growth stocks move at a faster pace compared to the overall market. They do so by increasing their profit or top-line margins. Hence, the companies that can outpace their peers, trade at a higher valuation, and derive better returns. 

Currently, both rising inflation and interest rates have led to uncertainties and volatility in the market. Hence, as a long-term investor, consider the performance of the overall stock market and then look for the right stock options for your portfolio.

In addition to this, focus on diversification. It helps in spreading out the risks. With the right strategy, investors can make way for long-term gains.

Let us look at five TSX growth stocks and their recent financial performance:

  1. Tourmaline Oil Corp. (TSX: TOU)

Tourmaline Oil Corp is engaged in the acquisition and development of crude oil and natural gas. The Canada-based company is also involved in crude oil exploration, with production in the Western Canada Sedimentary Basin.

For Q2 2022, the cash flow of Tourmaline Oil Corp was recorded at C$ 1.35 billion which is an increase of 137 per cent compared to Q2 2021.

The net earnings were reported at C$ 822.9 million versus C$ 420.8 million for the same comparative period. The company reported a dividend yield of 1.201 per cent and announced a quarterly dividend of C$ 0.225 per share. The EPS is at C$ 7.49 with a P/E (price-to-earnings) ratio of 10.

On August 10, 2022, Tourmaline Oil announced the completion of its acquisition of Rising Star Resources Ltd.

  1. Vermilion Energy Inc. (TSX: VET)

Vermilion Energy Inc. is engaged in oil and gas production. Further, it is engaged in production and exploration programs for development, acquisition, and exploration of producing properties in North America, Europe, and Australia. Production of natural gas and petroleum contributes to the majority if the revenue for the company.

For the quarter that ended June 30, 2022, Vermilion Energy reported its net earnings at C$ 363 million, an increase of 28 per cent from the prior quarter of the same year.

The fund flows from operations (FFO) were reported at C$ 453 million and free cash flow (FCF) was noted at C$ 340 million, with an increase of 16 per cent and 12 per cent respectively for the same comparative period.

In Q2 2022, the cash flow from operating activities soared to C$ 530,364 million compared to C$ 253,406 million in the same quarter of the previous year. The long-term debt witnessed a decline and was reported at C$ 1,527,217 million compared to C$ 1,769,866 million for the same comparative period.

On October 4, 2022, Vermilion Energy Inc. announced its ownership acquisition of additional common shares of Coelacanth Energy Inc.

The below graph illustrates the acquisitions made by Vermilion Energy in two different quarters:

  1. Boyd Group Services Inc. (TSX: BYD)

Boyd Group Services Inc. is a personal services company with its presence in Canada and the US. The company provides auto glass and auto body repair services and operates primarily under the Boyd Autobody and Glass brand name in Canada. The US brand for the company is known by the brand- Gerber Collision and Glass.

In Q2 2022, Boyd Group Services' sales increased to US$ 612.8 million which is an increase of 37.8 per cent from US$ 444.6 million in the same period of 2021.

The gross profit rose by 35.3 per cent and was reported at US$ 277.5 million for the same comparative period. The adjusted EBITDA also grew by 24.2 per cent to US$ 72 million compared to US$ 58 million in the year-ago quarter. The net earnings also rose to US$ 13.3 million compared to US$ 10.5 million compared to the corresponding quarter in 2021.

The company pays a quarterly dividend of C$ 0.144 per share. It has a five-year dividend growth of 2.16. Further, the EPS (earnings per share) was at C$ 1.20.

  1. Restaurant Brands International Inc. (TSX: QSR)

Restaurant Brands International is into retail sales and restaurant business. The source of the revenue for the company is from the lease income and royalty fees from franchised stores, and from its Tim Hortons supply chain operations.

In Q2 2022, the global system-wide sales rose by 14 per cent to US$ 10 billion. The consolidated comparable sales grew by nine per cent with sales recorded at Tim Hortons Canada (14 per cent) and Burger King International (18 per cent).

For the June 2022 quarter, Restaurant Brands revenue was recorded at US$ 1,639 million compared to US$ 1,438 million for the same quarter of 2021.

The adjusted EBITDA also grew to US$ 618 million compared to US$ 577 million for the same comparative period.

On the other hand, the net income witnessed a decline to US$ 346 million versus US$ 391 million.

  1. Cameco Corporation (TSX: CCJ.US)

Cameco is a uranium producer and is also engaged in uranium conversion and fabrication facilities.

For Q3 2022, the total revenue of Cameco was noted at C$ 389 million versus C$ 361 million for the same quarter of the previous year.

The company paid annual dividend to its shareholders of C$ 0.12 per share. It has a dividend yield of 0.389 per cent.

Bottom Line

Like any other sector, growth stocks also move with the market trends. Look for the stocks that offer different kind of return potential. This will help in building a stabilized portfolio and will also be in sync with your long-term wealth goals.

There may be different situations in the stock market in different time periods. Keep changing your strategy according to the market trends and fluctuations. Ensure to make your portfolio risk-proof and diversified. Do proper market research before entering the market and have a clear understanding of the factors may affect your portfolio in the long run.   

Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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