Kalkine Media lists Canadian growth stocks to watch in October

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Kalkine Media lists Canadian growth stocks to watch in October

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 Kalkine Media lists Canadian growth stocks to watch in October
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Highlights

  • As of September 27, 2022, the stock price of Dollarama Inc. was at C$ 77.46, with an increase of 36.1 per cent within 12 months.
  • In Q2 2022, the revenue of StorageVault increased to C$ 66 million compared to C$ 51.7 million in Q2 2021.
  • The retail sales for Canadian Tire Limited increased by 9.9 per cent and were recorded at C$ 5363.8 million

Usually, long-term investors do not pay attention to the churning and short-term rise in the markets. As a long-term investor, one can focus on factors that can majorly contribute toward gains in the long run.

On the other hand, growth stocks are vulnerable to market news, and their price can tumble sharply if any negative development occurs. Generally, these changes do not matter for long-term investors.

Here, we look at some of the growth stocks and their performances in recent quarters:

Dollarama Inc. (TSX: DOL)

Dollarama Inc. operates in retail stores that sell items at discounted prices. The company includes everyday consumer products, seasonal items, and general merchandise.

The Canadian retailer has a total market capitalization of C$ 22.7 billion. It announced a quarterly dividend of C$ 0.055 per share with a dividend yield of 0.28 per cent.

In Q2 2023, Dollarama's sales growth was 18.2 per cent. The EBITDA increased by 25.8 per cent. Further, the operating income also increased by 30.3 per cent and was calculated at C$ 287.4 million. In Q2 2023, the net earnings were C$ 193.5 million.

goeasy Ltd. (TSX: GSY)

goeasy Ltd. deals in providing financial services to buy different items such as appliances, furniture etc. Further, it also offers unsecured instalment loans to consumers. Business segments like easy financial and easyhome contribute to the majority of revenue for the company.

During Q2 2022, the operating income was reported to be at C$ 85.2 million, with an increase of 52 per cent against C$ 56.1 million in Q2 2021. The net income also witnessed an increase of 97 per cent and was calculated at C$ 38.3 million against C$ 19.5 million in Q2 2021.

The company witnessed an organic loan growth of C$ 216 million as a lender. The loan portfolio also increased by 32 per cent and was calculated at C$ 2.37 billion against C$ 1.8 billion.

goeasy Ltd. announced a quarterly dividend of C$ 0.91 to its shareholders with five-year dividend growth of 35.83 per cent. The below graph illustrates the total Q2 assets and liabilities for goeasy Ltd. in 2022 and 2021.

StorageVault Canada Inc. (TSX: SVI)

StorageVault Canada Inc. provides leasing storage space to commercial and individual customers. The company rents out space on their premises for long or short-term storage.

In Q2 2022, the company's revenue increased to C$ 66 million compared to C$ 51.7 million in Q2 2021. Reportedly, the revenue growth results from operational efficiency, revenue management program and occupancy growth.

On the contrary, StorageVault Canada Inc. witnessed a net loss of C$ 7.3 million against C$ 7.2 million in Q2 2021.  

Canadian Tire Corporation Limited (TSX: CTC)

Canadian Tire Corporation Limited has nearly 1,710 stores, franchises, and dealer-operated locations. It sells footwear, home goods, apparel, sporting equipment and vehicle fuel.

The total market capitalization of Canadian Tire Corporation is C$ 16.037 billion. The company paid a quarterly dividend of C$ 1.625 and has a five-year dividend growth of 16.66 per cent.

As of July 2, 2022, the Consolidated Comparable sales increased by five per cent. Further, the retail sales increased by 9.9 per cent and were recorded at C$ 5,363.8 million.

The revenue also increased by 12.4 per cent (C$ 485.5 million) and was reported at C$ 4,404 million. Meanwhile, the net income for Q2 2022 was calculated at C$ 177.6 million compared to C$ 259.1 million in Q2 2021.

Nutrien Ltd. (TSX: NTR)

Nutrien Ltd. is a merged product of PotashCorp and Agrium and was formed in 2018. It is a fertilizer producer and has three main crop nutrients-phosphate, potash, and nitrogen.

Reportedly, the company had net earnings of US$ 3,601 million and adjusted EBITDA of US$ 4,993 million as of June 30, 2022. Its sales were US$ 14,506 million as against US$ 9,763 million at the same time the previous year.

The company distributed a quarterly dividend of US$ 0.48 with a dividend yield of 2.143 per cent. Further, the earnings per share (EPS) was US$ 15.77, with a price-to-earnings (P/E) ratio of 7.4.

As of September 27, 2022, the stock price increased to US$ 115.97 within 12 months, against US$ 83.62 on September 27, 2021.

Bottom Line

As investors, go for a diversified portfolio to spread out its effects in the long term. By doing this, you can have exposure to several sectors and participate broadly as each sector rotates in different directions.

Keep a watchful eye on the market fluctuations and carefully select your stocks. Analyze the daily movements and add stocks to your portfolio appropriately.

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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