In general, growth stocks move at a faster rate compared to the overall market. They do this by increasing their profit or top line margins. Therefore, the companies that can outperform their competitors can trade at a higher valuation and get better returns.
Currently, both rising inflation and interest rates have led to uncertainty and volatility in the market. Therefore, as a long-term investor, consider the performance of the overall stock market and then look for the right stock options for your portfolio.
In addition to this, focus on diversification. It helps to spread the risks. With the right strategy, investors can make way for long-term profits.
Let’s look at five TSX growth stocks and their recent financial results:
Tourmaline Oil Corp. (TSX: TOU)
Tourmaline Oil Corp is engaged in the acquisition and development of crude oil and natural gas. The Canada-based company is also involved in crude oil exploration, with production in the Western Canada Sedimentary Basin.
For the second quarter of 2022, cash flow for Tourmaline Oil Corp was recorded at C$1.35 billion, which is an increase of 137 percent compared to the second quarter of 2021.
Net income was reported at CAD 822.9 million compared to CAD 420.8 million for the same comparative period. The company reported a dividend yield of 1.201 percent and announced a quarterly dividend of C$0.225 per share. EPS stands at C$7.49 with a P/E ratio of 10.
On August 10, 2022, Tourmaline Oil announced the completion of its acquisition of Rising Star Resources Ltd.
Vermilion Energy Inc. (TSX: VET)
Vermilion Energy Inc. is engaged in oil and gas production. Furthermore, it is engaged in production and exploration programs for the development, acquisition and exploration of producing properties in North America, Europe and Australia. Production of natural gas and petroleum contributes to the majority of revenue for the company.
For the quarter ended June 30, 2022, Vermilion Energy reported net income of C$363 million, an increase of 28 percent from the previous quarter of the same year.
Fund flows from operations (FFO) were reported at $453 million and free cash flow (FCF) was noted at $340 million, with an increase of 16 percent and 12 percent, respectively, for the same comparison period.
In the second quarter of 2022, cash flow from operating activities rose to CAD 530,364 million compared to CAD 253,406 million in the same quarter last year. Long-term debt decreased and was reported at C$1,527,217 million compared to C$1,769,866 million for the same comparative period.
On October 4, 2022, Vermilion Energy Inc. announced its ownership acquisition of additional common stock in Coelacanth Energy Inc.
The graph below illustrates the acquisitions made by Vermilion Energy in two different quarters:
Boyd Group Services Inc. (TSX: BYD)
Boyd Group Services Inc. is a personal services company with a presence in Canada and the United States. The company provides auto glass and auto body repair services and operates primarily under the Boyd Autobody and Glass brand in Canada. The American brand for the company is known under the Gerber Collision and Glass brand.
In the second quarter of 2022, Boyd Group Services’ sales increased to $612.8 million, an increase of 37.8 percent from $444.6 million in the same period in 2021.
Gross profit rose 35.3 percent and was reported at $277.5 million for the same comparative period. Adjusted EBITDA also grew by 24.2 percent to $72 million compared to $58 million in the same quarter last year. Net income also rose to $13.3 million compared to $10.5 million compared to the corresponding quarter in 2021.
The company pays a quarterly dividend of C$0.144 per share. It has a five-year dividend growth rate of 2.16. Furthermore, EPS (earnings per share) was C$1.20.
Restaurant Brands International Inc. (TSX: QSR)
Restaurant Brands International conducts retail and restaurant operations. The source of revenue for the company is from rental income and royalty fees from franchise stores and from its Tim Hortons delivery chain.
In Q2 2022, global system-wide sales increased 14 percent to $10 billion. Consolidated comparable sales increased nine percent with sales recorded at Tim Hortons Canada (14 percent) and Burger King International (18 percent).
For the June 2022 quarter, Restaurant Brands’ revenue was recorded at $1,639 million compared to $1,438 million for the same quarter in 2021.
Adjusted EBITDA also grew to $618 million compared to $577 million for the same period.
On the other hand, net profit showed a decline to USD 346 million compared to USD 391 million.
Cameco Corporation (TSX: CCJ.US)
Cameco is a uranium producer and is also engaged in uranium processing and manufacturing facilities.
For the third quarter of 2022, Cameco’s total revenue was recorded at CAD 389 million versus C$361 million for the same quarter last year.
The company paid an annual dividend to its shareholders of C$0.12 per share. It has a dividend yield of 0.389 percent.
Like any other sector, growth stocks also move with the market trends. Look for the stocks that offer different types of return potential. This will help build a stabilized portfolio and will also be in sync with your long-term wealth goals.
There can be different situations in the stock market during different time periods. Keep changing your strategy according to market trends and fluctuations. Make sure to make your portfolio risk-free and diversified. Do proper market research before entering the market and have a clear understanding of the factors that can affect your portfolio in the long term.
Note that the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interests in stocks or sectors should be carefully evaluated taking into account the risks.