“GARP” INVESTING: 3 CAN’T-MISS STOCKS TO BUY NOW
As the broader stock markets continue inching to higher highs, investors may be wondering if there are still any good deals out there. While pundits are sure to be on some sort of “market correction watch” over the coming weeks and months, I’d argue that waiting around for a pullback is not exactly the best idea in the world.
As prudent as it sounds to stash cash in a Tax-Free Savings Account (TFSA) high-interest savings account, I’d argue that by timing a correction, you’re still timing the market. And that could accompany upside risks (the risk of missing out on further gains) as you sit on the sidelines and settle for some pretty underwhelming interest rates. While the high-rate world has made savings accounts more bountiful, they’re still quite weak on the front of “real” returns, or returns when adjusted for inflation.
In this piece, we’ll focus on GARP stocks (that stands for growth at a reasonable price), which I view as great buys, even if you’re in the belief that the rest of the market is a tad rich, with a high chance of a correction over the near term.
goeasy
goeasy (TSX:GSY) is an alternative lender that’s really embraced next-generation tech. Indeed, the stock boomed a few years ago when the “Buy Now, Pay Later” boom took off, and young consumers were eager to spend on nice-to-have goods with debt. The firm’s mobile app, goeasy Connect, looks quite intriguing.
Though goeasy stock has spent most of 2022 and 2023 in a hangover of sorts, I view the firm as ready to pick up traction again now that the consumer is showing signs of life again. With a $2.7 billion market cap, goeasy stands out as a consumer lending play that has a lot of market share to go after.
The stock trades at 11.1 times trailing price to earnings, with a 2.96% dividend yield. That’s a reasonable price of admission for underrated growth, if you ask me!
Restaurant Brands International
Restaurant Brands International (TSX:QSR) stock is in a sweet spot right now. On one hand, it’s breaking out, with shares just shy of $108 per share. Also, there’s a nice dividend yield of 2.94%. Finally, the firm is ready to expand its restaurant chains into some pretty untapped and growthy markets.
At 20.9 times trailing price to earnings, I believe QSR stock is a serious bargain in the fast-food scene. Sure, the industry may have faced some hiccups lately. But QSR seems poised to outdo rivals under its impressive leadership, which has excelled in transforming Burger King into a cherished burger joint again.
Dollarama
Dollarama (TSX:DOL) stock is getting somewhat expensive at more than 31.5 times trailing price to earnings. Still, I believe the stock can keep gaining if its new store openings go smoothly. The company helped many Canadians cope with soaring costs of living. As inflation and macro headwinds continue to weigh, it will be interesting to see how Dollarama customers react.
- We just revealed five stocks as âbest buysâ this month … join Stock Advisor Canada to find out if Toronto-Dominion Bank made the list!
My guess is they’ll be loyal, even as inflation nosedives back to those 2% norms. Either way, I view DOL stock as a GARP play if it can succeed with its latest Canadian expansion!
The post “GARP” Investing: 3 Can’t-Miss Stocks to Buy Now appeared first on The Motley Fool Canada.
Should you invest $1,000 in Dollarama right now?
Before you buy stock in Dollarama, consider this:
The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now⦠and Dollarama wasnât one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.
Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the âeBay of Latin Americaâ at the time of our recommendation, youâd have $15,578.55!*
Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month â one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 32 percentage points since 2013*.
* Returns as of 3/20/24
More reading
- My Take: The Best TSX Stock to Buy With $1,000 in March 2024
- 3 Growth Stocks I’m Buying in April
- 2 Potentially Explosive Stocks to Buy in March
- The Best Stocks to Invest $1,000 in Right Now
- 5 Stocks You Can Confidently Invest $500 in Right Now
Fool contributor Joey Frenette has positions in Restaurant Brands International. The Motley Fool recommends Restaurant Brands International. The Motley Fool has a disclosure policy.
2024-03-28T19:56:05Z dg43tfdfdgfd