3 Canadian Stocks With High Expected Earnings Growth
One of the breakout marijuana stocks of the TSX index this week, and possibly one of the most exciting tickers in the legal weed space at the moment, The Supreme Cannabis Company (TSX:FIRE) is up 3.27% in the last five days with a 104.3% expected annual growth in earnings on the way.
Let’s take a brief look at a few other pieces of data for this hot weed stock before seeing how it compares with two other tickers signaling high earnings growth on the horizon.
The stats for this pot stock are lit
A P/B ratio of 4 times book and a five-year beta of 2.11 relative to the market should get the capital gains investor’s interest right away: Here is a stock that can punch above its weight and has a share price that’s twice as volatile as the market. Going for three times the future cash flow value with an earnings growth of 25.9% over the last 12 months, The Supreme Cannabis Company could be a good recommendation for a marijuana stock newcomer.
Not far off its all-time high around the $3.20 mark about this time last year, The Supreme Cannabis Company hit a similar peak a few days ago. Indeed, pot stock lovers should be paying close attention to this stock, as it’s likely to provide investors with the potential for upside for some time to come. With low debt of 21% of net worth and a considerable amount of inside buying in the last three months, it’s certainly one to watch.
Maybe high-growth stocks aren’t one in Vermilion after all…
Puns aside, the next stock isn’t alone in having high growth in earnings ahead of it. However, with more inside buying than selling in the last three months, and with a 115.8% expected annual growth in earnings on the way over the next one to three years, Vermilion Energy (TSX:VET)(NYSE:VET) is looking like one of the most exciting energy stocks on the TSX index.
With a dividend yield of 8.62% and some mixed valuation stats – see a P/B of 1.9 times book and technical discount of 22% against its future cash flow value – it’s down 1.77% in the last five days and looking like a value opportunity.
Or consider a miner, such as Wesdome Gold Mines (TSX:WDO). Down 3.74% in the last five days at the time of writing, this popular miner saw a one-year past earnings growth of 237.2% and five-year average of 47.3%. Its balance sheet is hale and hearty with low debt of 5.5%. With a 61.3% expected annual rise in earnings, this company has the potential for high growth ahead of it.
The bottom line
Things to watch out for in the above stocks include some red flags for Vermilion Energy: a one-year past earnings loss of -186.9% is compounded in a five-year average of -45.2%, while its balance sheet is so-so with 73.8% of debt on its balance sheet. Meanwhile, the miner has a P/E of 56.4 times earnings and P/B of 4.3 times book, indicating overvaluation. Still, for high growth in earnings, these are three of the best stocks on the TSX index.
Just one ticking time bomb in your portfolio can set you back months – or years – when it comes to achieving your financial goals. There’s almost nothing worse than watching your hard-earned nest egg dwindle!
That’s why The Motley Fool Canada’s analyst team has put together this FREE investor brief, including the names and tickers of 3 TSX stocks they believe are set to LOSE you money.
Stock #1 is a household name – a one-time TSX blue chip that too many investors have left sitting idly in their accounts, hoping the company’s prospects will improve (especially after one more government bailout).
Still, our analysts rate this company a firm SELL.
Don’t miss out. Click here to see all three names right now.
- 2019 Could Be a Turbulent Year for Oil-Weighted Energy Stocks
- Buy This 9% Yield to Profit From Higher Oil
- Is There a New Rising Star of Canadian Marijuana Stocks?
- Dividend Investors: Create Your Own 32.5% Yield With This Energy Giant
- 3 Top TSX Stocks Investors May Overlook for Defensive Dividends
Fool contributor Victoria Hetherington has no position in any of the stocks mentioned.