The Top Growth Stocks We Saw This Summer

Don’t just fall in love with growth stocks for growth but with the industry they’re in.

Plant growing through of trunk of tree stump

Source: Getty Images

This summer was a volatile one for investors. Inflation and interest rates continued to climb higher, and this led to a drop in the markets. Still, that doesn’t mean every stock was falling.

In the past three months, there have been a few standouts that I’m going to cover today. As well, we’re going to look at these industries to see if we can get some takeaways that could help investors seek out new growth stocks in the future.

Uranium

The uranium market could possibly be one of the most volatile growth stocks of the last few years. Stocks swung around back and forth, and it made it really difficult to figure out what would stay and what would go.

While smaller uranium stocks tended to swing wildly thanks to retail investors, Cameco (TSX:CCO)(NYSE:CCJ) remains a solid investment. Uranium will be necessary in the immediate future with the world shifting from oil and gas to renewable energy. And that’s why Cameco stock is such a good play.

The uranium provider is one of the largest in the world, creating partnerships across the globe to help with the energy transition. True, it’s expensive, but shares are likely to climb even higher in the next decade with this shift.

Shares of Cameco stock are up 35% in the last three months.

Transport

All these issues with supply chain logistics begs for solutions. Even as I’m writing this article, it’s been weeks since I’ve been able to buy sugar and ibuprofen for my kids. While part of this is due to inflation, the other is simply getting products into stores.

That’s why TFI International (TSX:TFII)(NYSE:TFII) has been a solid performer this summer. It provides solutions both through logistics but also through plain, old shipping with their transportation and packaging arms. Yet in this case, TFI stock is a solid value play, trading at just 15.13 times earnings.

Furthermore, TFI stock offers a dividend of 1.13% for investors. Right now, it’s up 33% in the last three months.

Restaurants

The pandemic restrictions have lessened to practically nothing, so consumers are back to shopping in store and eating out once more. This is likely why shares of Restaurant Brands (TSX:QSR)(NYSE:QSR) have climbed higher.

But I wouldn’t be so fast to buy up this stock in bulk. There has been some shifting performance from Restaurant Brands stock that has me questioning whether it’s a solid buy at this moment in time. Its Tim Hortons branch has been doing well through its partnership with Justin Bieber and new offerings, but not its other brand names.

And while its dividend is reasonably high, it’s not exactly cheap. I would perhaps hold off on Restaurant Brands stock, unless you plan on holding it for quite some time.

Shares of Restaurant Brands stock are up 26% in the last three months.

Bottom line

These growth stocks have seen an insane amount of double-digit growth in a very short period of time. However, while some are up higher than ever, some remain far below former price points. So, make sure you’re not just buying these growth stocks because they’re up but because they’re in sectors that are set to continue expanding.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Restaurant Brands International Inc. The Motley Fool has a disclosure policy.

More on Investing

Hourglass and stock price chart
Stock Market

It’s Not Too Late: Invest in These TSX Growth Stocks Now

Solid fundamentals of these top TSX growth stocks could help them maintain strong upward momentum in the years to come.

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

These top dividend stocks both offer attractive yields and trade off their highs, making them two of the best to…

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 »

dividends can compound over time
Bank Stocks

Is TD Bank Stock a Buy for Its 5.2% Dividend Yield?

TD Bank stock offers a rare 5.2% dividend yield—can it rebound from challenges and reward contrarian investors? Here's what to…

Read more »

chart reflected in eyeglass lenses
Investing

How Should a Beginner Invest in Stocks? Start With This Index Fund

This Vanguard index fund is the perfect way to start a Canadian investment portfolio.

Read more »

analyze data
Bank Stocks

Is BMO Stock a Buy for its 4.7% Dividend Yield?

Bank of Montreal is up 20% since late August. Are more gains on the way?

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 »

A person uses and AI chat bot
Tech Stocks

AI Where No One’s Looking: Seize Growth in These Canadian Stocks Before the Market Catches Up

Beyond flashy headlines about generative AI, these two Canadian AI stocks could deliver strong returns for investors who are willing…

Read more »