GUD:CC - 3 Growth Stocks to Invest $1000 in Right Now
2024-01-23 16:10:00 ET
Growth stocks had a respectable showing in 2023 amid rising interest rates. The tech sector, in particular, carried the TSX for most of the year. However, it’s back to zero in 2024. Since growth investing is still the theme, some stocks outside the tech sector are strong buys today.
StorageVault Canada ( TSX:SVI ), Cascades ( TSX:CAS ), and Knight Therapeutics ( TSX:GUD ) are not tech firms, but they have strong upside potential. You can invest $1,000 in one and reap considerable gains soon.
Economies of scale
StorageVault is carving a name in Canada’s rental services industry. The $2 billion company engages in the storage business and owns more than 101,000 units of rentable storage space. Also, it started operations in 2007, and new entrants are currently low. Securing zoning approvals is a challenge, while development charges have increased significantly.
Believe it or not, demand in the storage market is ever-growing as Canadians buy more stuff. Notably, residential customers (70%) outnumber commercial clients (30%). StorageVault expects to generate substantial net operating income (NOI) growth in the coming years.
In the nine months ending September 30, 2023 (first three quarters), the top line and net operating income (NOI) grew 11.3% and 10.5% year over year to $214.4 million and $143.6 million. Net income reached $26 million compared to the $17.9 million net loss a year ago.
StorageVault plans to take advantage of economies of scale. The goal is multiple stores in each market, with complementary portable storage units and records management storage services. If you invest today, SVI trades at $5.33 per share and pays a modest 0.21% dividend.
Strong earnings
Cascades is more expensive ($14.82 per share) than SVI, but the decent dividend yield (3.24%) is enticing. Furthermore, you can earn two ways from price appreciation and quarterly payouts. Thus far, this dividend payer outperforms the TSX year to date at +16.42% versus -0.25%.
The $1.5 billion company operates in the packaging and containers industry. It provides hygiene and recovery solutions in Canada and the U.S. through its packaging and tissue products. Cascades will also celebrate 60 years of successful operations on March 26, 2024.
In the third quarter (Q3) of 2023, operating income and adjusted net earnings soared 220% and 125% to $80 million and $45 million versus Q3 2022. Management expects the Specialty Packaging and Tissue Papers segments to remain stable, although higher raw material costs and lower average selling prices are headwinds.
Promising outlook
Knight Therapeutics is a promising growth stock in the life sciences sector. Buy the stock ($5.72 per share) before it soars. This $596.9 million specialty drug company acquires or in-licenses and commercializes pharmaceutical products for Canada and Latin America.
The good news is that Knight reported a 503% increase in net income to $9.59 million in Q3 2023 versus Q3 2022. Furthermore, revenues reached a record $254 million after three-quarters of last year. The company recently launched IMVEXXY in Canada for the treatment of postmenopausal moderate to severe dyspareunia. Knight will also bring branded generic products to its markets in Q2 2024.
Hefty returns
Canadians with limited funds can invest wisely by taking positions in Cascades StorageVault Canada or Knight Therapeutics. These growth stocks are well positioned to deliver hefty returns.
The post 3 Growth Stocks to Invest $1,000 in Right Now appeared first on The Motley Fool Canada .
Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
2024