2 TSX Companies Ready to End 2024 with a Bang!

For Canadian investors, keeping an eye on growth areas is key to maintaining an edge in the market. Growth stocks often outperform over time, and according to data from RBCCanadian growth stocks have delivered an impressive average return of 8.7% per year over the past 10 years. Staying connected to sectors with significant expansion potential allows investors to capture new opportunities and ride the wave of long-term gains. As such, growth-focused strategies could prove particularly rewarding. So let’s take a look at some of the stocks to consider as we approach the end of 2024.

Where to look

As 2024 enters its final quarter, several areas of the market are poised for a rebound. Technology stocks that suffered earlier in the year are showing signs of recovery, particularly as artificial intelligence (AI), cloud computing, and cybersecurity continue to drive demand. Additionally, energy stocks are poised for a resurgence due to geopolitical factors and rising oil prices. Investors who were cautious earlier in the year may see this as an ideal time to reenter these sectors and take advantage of the potential upside.

Real estate investment trusts (REITs) are another sector that is poised to rebound. As interest rates stabilize, REITs, under pressure from rising borrowing costs, are likely to regain their footing. As demand for residential and commercial space increases, REITs can offer both capital growth and reliable dividends. For investors looking to replenish their portfolios, watching these sectors in the final quarter could be a smart move.

Well stocked

WELL Medical Technologies (TSX:WELL) on TSX is a fantastic option for those looking for a safe growth investment. Despite a modest 4.8% decline in its share price over the last year when I wrote it, WELL has an impressive earnings momentum. This includes quarterly revenue growth of 42.3% year over year. Its price-to-earnings (P/E) ratio of 14.1 suggests that investors expect earnings to continue to grow. While its return on equity of 18.3% shows management’s ability to generate solid profits. “WELL Health is at the forefront of the digital healthcare revolution, positioning itself as the market leader in telemedicine services,” according to one industry expert.

WELL’s solid financials further support its long-term growth potential. With a market capitalization of $1 billion and cash flow from operations of $88.8 million, the company is well-positioned to continue to expand its services and grow its revenue base. Its relatively low debt-to-equity ratio of 41.6% contributes to its stability. All things considered, WELL is an attractive option for investors seeking a balance of growth and security in the rapidly evolving healthcare sector.

Descartes

Descartes Systems Group (TSX:DSG) is another solid choice for Canadian investors looking for stability and growth. With a 52-week share price gain of 29.4%, DSG has demonstrated impressive earnings momentum. Year-over-year quarterly earnings growth is 23.4%, and an operating margin of 28.2% shows the company’s efficiency in turning revenue into profit. A return on equity of 10.3% reflects the company’s solid management, making it a reliable choice for long-term investors.

With a market capitalization of $11.2 billion and very low debt levels, DSG is financially sound and continues to perform well in the software-as-a-service (SaaS) sector. As one analyst commented, “Descartes is positioning itself as a global leader in logistics technology, and its continued growth is a testament to its strong business model and strategic acquisitions.” Investors looking for technology stocks with consistent growth potential should seriously consider DSG as a core part of their portfolio.

Stupid takeaway

In summary, keeping an eye on growth areas like technology, energy, and REITs, and investing in strong companies like WELL and DSG, could be a winning strategy for Canadian investors. With solid earnings momentum and market potential, these stocks offer a great mix of growth and stability, making them a great choice for those looking to ride the wave of market rebounds in 2024!