Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Millennials: 3 Dirt-Cheap Growth Stocks to Buy Now

Stock Markets May 18, 2022 12:45
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Millennials: 3 Dirt-Cheap Growth Stocks to Buy Now

Millennial investors have been tasked with navigating an increasingly turbulent stock market in 2022. Canadian stocks suffered sharp losses to start the spring season. However, the last few trading sessions have seen the TSX stage an impressive rebound. Today, I want to look at three growth stocks that have flashed oversold signals in middle of May. Millennials may want to consider snatching up these equities right now. Let’s dive in.

Millennials waiting for a home purchase can still win off real estate with this growth stock The Canada housing market has experienced massive increases in valuations over the past decade. This has made it difficult for the millennial generation to get in on this market. However, younger investors can get in on the real estate space by snatching up a growth stock like Home Capital Group (TSX:HCG). This Toronto-based company provides residential and non-residential mortgage lending and other credit services in Canada.

Shares of Home Capital have plunged 27% in 2022 as of close on May 17. The Canada housing market has seen a big dip in sales after a set of interest rate hikes from the Bank of Canada (BoC). This could present a great buying opportunity for millennials in the conventional real estate market as well as in a growth stock like Home Capital.

This stock currently possesses a very attractive price-to-earnings (P/E) ratio of 6.2. Moreover, it offers a quarterly dividend of $0.15 per share. That represents a 2% yield.

This reeling cannabis stock is still geared up for strong earnings growth Cannabis stocks surged back in late March after potential recreational legalization gained significant ground in the United States. However, that momentum quickly petered out in the beginning of April. HEXO (TSX:HEXO)(NASDAQ:HEXO) is a Quebec-based company that produces, markets, and sells cannabis in Canada. Its shares have plunged 54% so far in 2022.

This company released its second-quarter 2022 results on March 18. Total net revenues increased 61% year over year to $52.8 million. Meanwhile, it posted an adjusted EBITDA loss of $5.6 million — up from a $11.2 million loss in the prior year. HEXO is still on track to post strong earnings growth going forward. Millennials who want exposure to a reeling sector may want to snatch up this growth stock today.

One more cheap equity for millennials to consider right now WSP Global (TSX:WSP) is another growth stock that could be perfect for a millennial portfolio in 2022 and beyond. This Montreal-based company operates in the professional services consulting space in North America and around the world. Its shares have plunged 24% so far this year. The stock is still up 3.1% from the same period in 2021.

The company unveiled its final batch of fiscal 2021 results on March 9, 2022. Its total backlog delivered 10% growth for the full year. Meanwhile, revenues rose 16% to $10.2 billion. Moreover, adjusted EBITDA increased 25% year over year to $1.32 billion. Better yet, adjusted net earnings jumped 50% to $592 million in 2021.

Shares of this growth stock are trading in favourable value territory at the time of this writing. Millennials can also count on its quarterly dividend of $0.375 per share, representing a modest 1.1% yield.

The post Millennials: 3 Dirt-Cheap Growth Stocks to Buy Now appeared first on The Motley Fool Canada.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends HEXO Corp. and WSP GLOBAL INC.

This Article Was First Published on The Motley Fool

Millennials: 3 Dirt-Cheap Growth Stocks to Buy Now

Related Articles

Got $1,000? Invest it in Real Estate
Got $1,000? Invest it in Real Estate By The Motley Fool - Jun 27, 2022

The current market correction provides an incredible opportunity for Canadians to invest excess cash. In the long run, investors want stable income from their investments. If you...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
Sign up with Email