When it comes to finding the top growth stocks, there are some that offer long-term rewards, and others, not so much. Today, we’re focusing on the former, finding companies on the way up, not those already peaking.
With that in mind, let’s look at why investors may want to consider picking up Element Fleet Management (TSX:EFN), Wheaton Precious Metals (TSX:WPM), and Kinross Gold (TSX:K) on the TSX today.
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EFN
EFN is one of the largest fleet management companies in North America. It has a strong market presence and a diverse client base, including Fortune 500 companies. With the increasing need for fleet management services due to e-commerce growth and logistics requirements, EFN is well-positioned to benefit from this trend.
Meanwhile, EFN has consistently demonstrated solid revenue growth. For instance, in 2023, the company’s total revenue increased by approximately 12% year-over-year, reaching around $1.2 billion. What’s more, EFN has shown stable and growing earnings. In the most recent quarter, EFN reported an adjusted net income of CAD 78 million, a 9% increase compared to the previous year.
Yet now, EFN is trading at a reasonable price-to-earnings (P/E) ratio of around 15, which is attractive compared to industry peers. This indicates that the stock is fairly valued given its growth prospects. Plus, EFN offers a dividend yield of approximately 2.5%, providing a steady income stream for investors. The company has a history of consistently paying and gradually increasing dividends, reflecting its commitment to returning value to shareholders.
WPM
WPM has a diversified portfolio of streaming agreements with over 20 mining operations. This reduces risk associated with dependence on a single asset. This includes agreements in stable jurisdictions across North and South America. The company’s revenue mix includes gold, silver, and other precious metals. This provides exposure to multiple commodity markets and reduces the impact of price volatility in any single metal.
WPM is actively involved in several expansion projects that are expected to increase production capacity. For instance, the company has ongoing projects in Brazil and Canada. These are projected to add significant production volumes in the coming years.
WPM has shown consistent revenue and earnings growth. For example, in 2023, the company reported revenues of US$1.2 billion, representing a year-over-year increase of 15%. Adjusted net earnings for the same period were US$600 million, a 10% increase from the previous year. Plus, the company offers a dividend yield of approximately 1.5%, providing a steady income stream for investors.
Kinross
If you want in on gold directly, Kinross stock might be a solid choice. Kinross produced 2.1 million gold equivalent ounces in 2023, maintaining its position as one of the leading gold producers globally. The company’s consistent production levels ensure a steady revenue stream.
Kinross is known for its low-cost operations, with an all-in sustaining cost (AISC) of US$950 per ounce of gold. This positions the company favourably compared to its peers and provides a competitive advantage in maintaining profitability even during periods of lower gold prices. Kinross Gold has demonstrated consistent revenue growth. In 2023, the company reported revenues of approximately US$4.2 billion, reflecting a year-over-year increase of 8%. Kinross has maintained strong earnings, with an adjusted net income of US$650 million in 2023, a 12% increase from the previous year.
The company has several ongoing and planned expansion projects. This includes the Tasiast 24k project in Mauritania and the Chulbatkan project in Russia. Kinross trades at an attractive price-to-earnings (P/E) ratio of around 10, which is relatively low compared to industry peers. And with a 2% dividend yield, it’s a strong choice for growth and income.
