3 TSX Growth Stocks Could Return Up To 80% By Year End

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The TSX’s triple-digit lead (356.50 points) at the January 2022 close could be the end of its New Year’s slump. The main Canadian equity benchmark has had a volatile month, but the end has was the best in the index for the year. Craig Fehr, an investment strategist, said the weak start to 2022 in North American stock markets doesn’t reflect how the year will unfold.

Buying opportunities should open up in February, especially for investors looking for higher returns in 2022. Based on market analysts’ buy recommendations, growth stocks Ovintiv Inc. (TSX: OVV)(NYSE: OVV), SNC-Lavalin Group (TSX: SNC), and MOGO (TSX:MOGO)(NASDAQ:MOGO) could return up to 80% by the end of the year.

Capital efficiency

Ovintiv was formerly Encana, Canada’s largest energy company and natural gas producer. The $12.84 billion company changed its name in 2019, then moved to Denver, Colorado. At $49.21 per share, the one-year price return is 148.49%. Current investors enjoy a 15.62% year-to-date gain on top of the 1.48% dividend.

Management has yet to present its 2021 financial and operational results. However, it is confident that last year’s development program will be highly replicable in 2022 if the amount of capital investment is the same. Brendan McCracken, President and CEO of Ovintiv, said, “We are confident in our ability to maintain capital efficiency in 2022.”

Ovintiv expects its Permian, Anadarko and Montney assets to generate superior returns on invested capital. The company will likely report between $1 billion and $1.1 billion in upstream operating cash flow for each asset in 2021. This energy stock has a solid track record of beating earnings estimates, including in the second and third quarter 2021.

Growth catalysts

SNC-Lavalin, a once tainted name, has been wooing investors lately. The industrial stock’s total return last year was 42.57%. Its current stock price is $28.03, although analysts covering the stock are looking at a possible rally to $50 (+78.38%) in 12 months. Your overall return should be a bit higher if you factor in the 0.29% dividend.

The $4.65 billion integrated professional services and project management company has several growth catalysts in the pipeline. On January 18, 2022, SNC-Lavalin won three new contracts from the UK Atomic Energy Authority (UKAEA). It will continue to work on a flagship program to design and build a commercial-scale fusion power plant.

SNC-Lavalin also launched Decarbonomics last month. The data-driven solution aims to decarbonize the built environment at a lower cost while accelerating the global journey to zero emissions. Its President and CEO, Ian L. Edwards, said the company provides sustainable solutions by connecting people, data and technology.

Huge upside potential

MOGO is trading at an absurdly low price of $2.76, but it climbed 8.74% on the last trading day of January. Market analysts are bullish on the fintech stock and give it “buy” to “strong buy” ratings. Their 12-month “low” price target is $10, for an upside potential of 262.32%.

The $210.72 million digital payments and fintech company saw buoyant activity in 2021. MOGO recently made a strategic investment in NFT Trader, an operator of a secure peer-to-peer OTC trading protocol for non-fungible tokens (NFT). According to management, the world of finance is changing rapidly and NFT Trader is expected to add to Mogo’s growing portfolio of digital assets and investments.

High Growth Portfolio

Investors can build a high-growth portfolio by focusing on all three stocks. Rarely does a unique opportunity come your way.

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