3 “Rocket Fuel” Stocks for High-Growth Investors

Kinaxis Inc. (TSX:KXS) joins two other stocks on the TSX index to make for a high-growth trio of outperforming investments.

| More on:

When growth investors turn to the TSX index for some serious momentum stocks, it doesn’t disappoint. Here are three of the best high-performance tickers currently listed on Canada’s biggest stock exchange, with everything from stratospheric earnings projections to large market shares on display, drawn from the worlds of tech and Canadian cannabis.

Kinaxis (TSX:KXS)

Classed as a tech stock in large part because of its cloud-based sales software, Kinaxis’ main area of business is in the field of supply chain management. Up 2.03% in the last five days at the time of writing, it’s a popular choice, and with three-year returns of 80.8% and a decent track record denoted by a five-year average past earnings growth of 46.7%, it’s a solid one, too.

Boasting low debt at just 4.8% of its net worth, Kinaxis is looking at a 25.7% expected annual growth in earnings, while a P/E of 104.1 times earnings and P/B of 8.2 times book defines a stock that is potentially gravity-resistant.

Savaria (TSX:SIS)

One of the healthiest of healthcare stocks on the TSX index, Savaria also doubles as a crossover capital goods/consumer durable play, while also technically belonging to the machinery industry, and commands a strong position in the personal mobility sector. As such, its stock offers exposure to various areas with just one investment, and serves as a defensive addition to a portfolio.

Up 3.01% in the last five days, Savaria is a popular stock — one that can do what few high-growth tickers can: show a strong track record. This latter characteristic is illustrated by a solid one-year past earnings growth of 44.9% and five-year average growth of 31.5%.

Its balance sheet is getting healthier, too, with a level of debt to net worth that has been brought down over the last five years from 78.6% to 49.6%. With high market ratios, it’s not for the value investor, though a dividend yield of 3.07% matched with a 31.1% expected annual growth in earnings might turn a passive income investor’s head.

HEXO (TSX:HEXO)

This Canadian cannabis stock’s 12-month returns of 110.6% easily outpaced both the pharma industry and the TSX index. However, down 4.47% in the last five days, HEXO shows that it can buck like a mule; even so, it remains a high-volatility option with a beta of 4.96 that might be just right for experienced growth investors.

While HEXO insiders have only sold shares in the last few months, HEXO’s 122.8% expected annual growth in earnings exceeds both of the previous stocks’ projected earnings put together, and signifies a stock that could rule the marijuana roost in the coming months. A P/B of 4.22 times book is far from the highest such ratio on the markets, though it confirms overvaluation.

The bottom line

Savaria’s P/E of 27.5 times earnings and P/B of 3.1 times book are the lowest on the list, and with a decent dividend on display, this could be a front-runner for a more long-range play on the TSX index. Meanwhile, HEXO continues to wow momentum traders with its high returns and impressive outlook, while the software stock remains a compelling option for high gains.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Victoria Hetherington has no position in any of the stocks mentioned. Kinaxis is a recommendation of Stock Advisor Canada.

More on Dividend Stocks

Canadian Dollars bills
Dividend Stocks

3 Monthly-Paying Dividend Stocks to Boost Your Passive Income

Given their healthy cash flows and high yields, these three monthly-paying dividend stocks could boost your passive income.

Read more »

Make a choice, path to success, sign
Dividend Stocks

The TFSA Blueprint to Generate $3,695.48 in Yearly Passive Income

The blueprint to generate yearly passive income in a TFSA is to maximize the contribution limits.

Read more »

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »

senior man and woman stretch their legs on yoga mats outside
Dividend Stocks

TFSA: 2 Canadian Stocks to Buy and Hold Forever

Here are 2 TFSA-worthy Canadian stocks. Which one is a good buy for your TFSA today?

Read more »

calculate and analyze stock
Dividend Stocks

This 5.5% Dividend Stock Pays Cash Every Single Month!

This REIT may offer monthly dividends, but don't forget about the potential returns in the growth industry its involved with.

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

How to Use Your TFSA to Earn up to $6,000 Per Year in Tax-Free Passive Income

A high return doesn't mean you have to make a high investment -- or a risky one -- especially with…

Read more »

path road success business
Dividend Stocks

2 High-Yield Dividend Stocks to Buy Hand Over Fist and 1 to Avoid

High yields are great and all, but only if returns come with them. And while two of these might, another…

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

This 7% Dividend Stock Pays Cash Every Month

A high dividend yield isn't everything. But when it pays out each month and offers this stability, it's worth considering!

Read more »