HIVE:CC - Saving for a Down Payment? These 3 Stocks Can Help
2023-08-12 09:45:00 ET
Retirement is the most common reason why most people learn how to invest in stocks , but it’s not the only reason. A good approach to investment can help a wide range of people achieve a variety of financial goals, including the purchase of their first home, although it might be too ambitious of a goal.
Even saving for a down payment may take years, but with the right growth stocks, investors can cut down that time significantly.
A discounted growth stock
While a discount makes a growth stock more attractive for investors, it can also introduce fear about its long-term viability, especially if the discount lasts too long. There are exceptions to this, and Mississauga-based Cargojet ( TSX:CJT ) may be one of them. It’s Canada’s premier cargo-only airline and uses its decent 49-aircraft fleet to fly over 71 routes daily.
One of the airline’s primary strengths is time-sensitive cargo, making it an ideal partner for certain e-commerce businesses. Cargojet stock is currently trading at a 60% discount from its post-pandemic peak, and it’s also quite undervalued, with a price-to-earnings ratio of just six.
Despite the massive discount, the stock’s last 10 year’s returns are exceptional — over 930%, including dividends. That can be averaged out to 93% a year.
An unpredictable growth stock
Crypto stocks, thanks to the nature of the underlying assets, are quite volatile. But they are also powerful growers in the right market conditions. HIVE Blockchain Technologies ( TSXV:HIVE ) is a good example of a relatively unpredictable growth stock, though you may be able to predict strong bullish and bearish trends by watching the movement of crypto assets like Bitcoin .
HIVE stock is capable of powerful growth when the market circumstances are right. In the last three years, the stock has grown over 100% at least four times. So, if you buy low and wait, positive market trends in the underlying crypto market may help you double your capital within a year, but the opposite is just as true.
A trusted growth stock
If you are looking for both a powerful growth pace and consistency, Descartes Systems Group ( TSX:DSG ) is an option worth considering. It’s one of the best-growing tech stocks in Canada and has risen by about 700% in the last 10 years. You can average it out to about 70% appreciation year.
Descartes has developed an impressive logistics platform and digital ecosystem that combines a wide range of digital solutions used by a massive logistics network.
The company offers a wide range of solutions related to logistics, including connectivity, compliance monitoring, business intelligence, and transportation management. Collectively, these solutions can help a business fine-tune its logistics to perfection.
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Foolish takeaway
Even if we choose stocks that have a predictable growth rate, Descartes and Cargojet might help you achieve roughly 80% growth a year. If your down payment goal is $100,000 and you can only put away $10,000 each year, you can cut that down to less than five years with these stocks.
The post Saving for a Down Payment? These 3 Stocks Can Help appeared first on The Motley Fool Canada .
Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cargojet. The Motley Fool recommends Bitcoin and Descartes Systems Group. The Motley Fool has a disclosure policy .
2023