Business & Investment

Forget Dogecoin: These two top Canadian growth stocks are recovering

The first cryptocurrencies appeared about 13 years ago, a short time compared to the long history of the stock market. Importantly, it is impossible to determine if Dogecoin or any other new cryptocurrency is still in power.

It may make sense to hold a basket of cryptocurrencies, including Dogecoin, as a small part of a diversified investment portfolio for long-term investments. However, it’s probably best to invest primarily in proven assets such as portfolio stocks and real estate.

If you have Dogecoin or other cryptocurrencies, hide them and forget about them.Consider purchasing these Canadian growth stocks It worked well and just reported the stellar earnings!

Savaria

Savaria (TSX: SIS) Compared to the first quarter of 2020, revenue increased 27% to $ 112 million and adjusted EBITDA increased 40% to $ 17 million, reporting good performance in the first quarter of 2021. On a per-share basis, adjusted EBITDA was up 29% to $ 0.31.

Part of the quarterly results was supported by the acquisition of Handy Care Group AB, which was completed on March 4. The corporate value of Handy Care has exceeded $ 520 million. The acquisition expands Savaria’s product offerings and geographic reach.

Dividend stocks performed well by providing total returns that exceeded market returns in the last 12, 5, and 10 years. It offers a good yield of 2.6% and may continue to outperform in the long run. The 10-year annual rate of return on stocks is over 29%, 16 baggers.

Total return level data by YCharts.

Savaria has a 10-year dividend growth rate of 16%, three of which have reduced dividends. We have increased dividends over the last 6 years. And it’s hard to imagine cutting dividends with strong earnings growth expected over the next few years.

Savaria is a small cap with a market capitalization of approximately $ 1.2 billion and carries the risk of acquisitions and consolidations. Therefore, expect volatility along the way.

Management will benefit from the growing global aging population and generate revenue in approximately five years, with a focus on product innovation and continuous improvement, production efficiency, and organic sales growth. I expect to double it.

Savaria Is a global company that provides accessibility solutions for the physically challenged to increase comfort, mobility and independence. It sells in more than 40 countries and has 30 direct sales offices, over 1000 dealers and 15 manufacturing or distribution facilities in 12 countries.

5 baggers in a year

Converge technology solution (TSX: CTS) reported record results for the first quarter of 2021 compared to the first quarter of 2020, with revenues up 28% to $ 310 million and adjusted EBITDA up 71%. Is close to $ 19 million.

Coincidentally, like Savaria, small cap IT stocks have a market capitalization of about $ 1.2 billion. I just graduated from the TSX Venture Exchange. TSX It’s February, so it’s still relatively unknown to the investment community. But analysts are in a hurry. Currently, nine analysts cover the stock.

After reporting the first quarter results, tech stocks surged by more than 6%. However, analysts still believe it is about 18% undervalued.

In particular, Converge is one of the fastest growing IT service providers in North America. We provide hybrid IT solutions to the mid-market and employ a successful M & A strategy with cross-selling and integration capabilities.

Coming from a low base, the stock is already 5 baggers from a year ago!

Total return level data by YCharts.

In its first-quarter earnings call, management revealed that it aims to increase revenue to $ 5 billion by the end of 2025. This could triple the stock during that period. Above all, growth plans depend on the expansion of Converge in Europe and the successful growth of managed services. Details will be announced at the Annual General Meeting on June 23.


This article represents the opinion of a writer who may disagree with the “official” recommendation position of the Motley Fool Premium Services or Advisors. We are Motley! Asking investment treatises, even our own, can help you think critically about your investment and make decisions to be smarter, happier, and richer. As a result, we may publish articles that may not match recommendations, rankings, or other content.

Stupid contributor Cain I own a stake in Converge. Motley Fool recommends Savaria.

Forget Dogecoin: These two top Canadian growth stocks are recovering

https://www.fool.ca/2021/05/12/forget-dogecoin-these-2-top-canadian-growth-stocks-are-rallying/ Forget Dogecoin: These two top Canadian growth stocks are recovering

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