3 Cheap, High-Growth TSX Stocks to Buy Right Now

There are tonnes of cheap, high-growth TSX stocks in the small- to mid-cap space. Here’s three that are screaming buys right now!

| More on:

High-growth stocks on the TSX have been under significant pressure in 2022. Fortunately, if you are willing to do some digging, there are some really attractively priced small- and mid-cap growth stocks out there.

Today, the market seems to have forgotten them, but at some point, sentiment will change, and they could have massive upside. Here are three ultra-cheap, high-growth TSX stocks I’m eyeing today.

TSX growth stocks at a discount

A top insurance stock

Generally, when we think of TSX growth stocks, we think of the technology sector. However, that is not always the case. Trisura Group (TSX:TSU) is a specialty insurance provider largely in Canada and the United States. Many don’t know this stock, but it has delivered a whopping 566% total return over the past four-and-half years.

Trisura has focused on niche insurance products that are lower risk, but higher return. Likewise, it has an insurance fronting business, where it underwrites policies, collects fees, and offsets the risk to a re-insurance provider. This has resulted in consistent market-leading high-teens return on equity (ROE).

Over the past three years, it has grown revenues and earnings per share by a compounded annual growth rate of 92% and 67%, respectively. That may slow, but it will still likely deliver elevated returns over its peers.

This TSX stock trades for 19 times earnings, which is still a significant discount to insurance fronting peers in the United States. This is the cheapest this stock has been since the pandemic hit.

A top TSX financial stock

Another unconventional cheap growth stock is goeasy (TSX:GSY).  Like Trisura, goeasy has a great track record of returns. Over the past five years, investors have earned a 420% total return. Its stock has grown by a compounded annual growth rate of 39%!

goeasy is one of Canada’s largest providers of non-prime loans and leasing services. The large Canadian banks have abandoned this lending segment, so goeasy has been capturing significant market share.

Over the past five years, the company has grown annual revenues by around 20% and earnings per share by nearly double that rate.

While growth could slow due to market penetration, goeasy is developing new product verticals and is looking to expand into new geographies. Despite its great track record and positive outlook, this TSX stock only trades for 11.5 times earnings. It also pays a nice 2.7% dividend, so that is an attractive bonus.

A top TSX tech stock

One technology stock that has suffered in the recent selloff is Telus International (TSX:TIXT)(NYSE:TIXT). It provides digital customer interaction services for some of the largest corporations in the world. The world is increasingly digitizing business interactions. TI is at the forefront with data analytics, artificial intelligence, and machine-learning services.

TI completed its initial public offering (IPO) last year. Despite growing revenues and adjusted EBITDA by 38% and 39% in 2021, this stock has sold off significantly. It is down 9% since its IPO. While growth is expected to slow in 2022, it still expects at least high-teens growth across all metrics.

This TSX stock only trades with an enterprise value-to-EBITDA ratio of 12.5. For a company growing at a significantly faster rate, that seems cheap. Telus International is a well-managed growth company with a good balance sheet, strong free cash flows, and an attractive long-term outlook. Consequently, it is an attractive long-term buy at this price.

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 Robin Brown owns TELUS International (Cda) Inc., TRISURA GROUP LTD, and goeasy Ltd. The Motley Fool owns and recommends TRISURA GROUP LTD. The Motley Fool recommends TELUS International (Cda) Inc.

More on Stocks for Beginners

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Emerging Canadian AI Companies With Big Potential

These tech stocks are paving the way to an AI-filled future, but still offer enough growth ahead for a strong…

Read more »

Young Boy with Jet Pack Dreams of Flying
Tech Stocks

Is Constellation Software Stock a Buy, Sell, or Hold for 2025?

CSU stock has long been a strong option for high growth, high value stocks. But are there now too many…

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 »

Asset Management
Stocks for Beginners

TFSA: 4 Canadian Stocks to Buy and Hold Forever

Thinking about what to buy with the new TFSA contribution space in 2025? These four Canadian stocks are worth holding…

Read more »

concept of real estate evaluation
Stocks for Beginners

2 No-Brainer Real Estate Stocks to Buy Right Now for Less Than $1,000

These two real estate sector-focused stocks have the potential to deliver strong returns on your investments in the coming years.

Read more »

engineer at wind farm
Energy Stocks

Invest $20,000 in This Dividend Stock for $100 in Monthly Passive Income

This dividend stock has it all – a strong outlook, monthly income, and even more to consider buying today.

Read more »

stocks climbing green bull market
Stocks for Beginners

3 TSX Stocks Soaring Higher With No Signs of Slowing

Don't ignore stocks just because they look like they're at a high price. Instead, see exactly why they've driven so…

Read more »

Middle aged man drinks coffee
Dividend Stocks

Here’s the Average TFSA Balance at Age 35 in Canada

At age 35, it might not seem like you need to be thinking about your future cash flow. But ideally,…

Read more »