What’s up guys, it’s wiz.
Welcome back to the channel. If you are new, I am a Canadian investor. I cover a whole lot of information about investing in Canada and do research into our Canadian market. I dive into growth investing, dividend investing and Canadian small caps / penny stocks. Today, I will be presenting 3 underlooked Canadian stocks that have good potential. There are several strong options to consider but these TSX stocks are bound for even more strong growth ahead. As always, these are Canadian companies that no one talks about on Youtube, so make sure to leave a thumbs up. For new investors, you need to join Wealthsimple Trade if you are looking to start investing and live in Canada. If you use my link in the description to join Wealthsimple, you get 2 free stocks worth up to 4500$ so do not miss out that.
The first growth stock is Vermilion Energy (ticker symbol VET). The company has been put in a strong position due to the recent exposure to Europe as well as the increase in gas prices there and around the world. Its recent acquisitions put it in a strong position for strong cash flow through 2023, and it should now outperform the strong oil and gas sector. Vermilion stock fell back during recent years to a point where now the TSX stock offers strong value at its current share price. That’s even after 60% growth year to date. It now expects cash flow to increase from $2.2 billion in 2022 to $2.4 billion in 2023, reaching a net debt target of $1.2 billion this year.
The second growth stock is Chemtrade (ticker symbol CHE-UN). If there is to be a recession, Chemtrade has proven it can outperform — even within its own sector. There has already been an increased demand for acid services, with sulphuric acid up across North America. As for Chemtrade itself, the company has also made several initiatives to create cash flow, including the sale of its non-core specialty chemical business. This injected $10 million into the company. Now, the company is at a decent valuation on the basis of this growth in cash and strong balance sheet.
The third and final growth stock is Alimentation-Couche Tard (ticker symbol ATD). The company had decent fourth-quarter results, and analysts expect the company to show great strength. The TSX stock has seen sustained growth thanks to increasing oil and gas prices, combined with the reduction or elimination of pandemic restrictions. This includes in Europe, where oil and gas prices have been growing as well, along with increasing merchandise sales. So, what investors should focus on is the outlook for the next year or so. Analysts therefore expect long-term growth potential, though there may be some short-term volatility. Anyways, this past week, ATD has been trending upwards, great Canadian stock to consider.
Hope you guys enjoyed these 3 Canadian growth stocks, hopefully this gave you some more info about these companies and where they are currently positioned in the Canadian market. Please watch my previous videos on Canadian stock recommendations and let me know of any Canadian stocks you want me to look into and give my opinion on. Let me know in the comments, since I really want to expand my knowledge in the Canadian market, and you also expand your own knowledge by asking questions. If you did enjoy this video, leaving a like really helps grow the channel! Thanks for watching, I’ll see you guys in the next video!