Growth stocks can be big boosters of returns for your bold portfolio. These stocks tend to be more volatile than stable dividend stocks because the only way to make money is to take profit from them. However, truth be told, it’s super-duper difficult to time the market. Investors who aim to buy when these stocks are relatively cheap and can hold on for a long time should be rewarded handsomely.
Without further ado, here are some of the best three growth stocks for 2019 and beyond!
This little growth stock is a good buy now Biosyent (TSXV:RX) is a small-cap stock that investors should seriously consider right now, as the stock has retreated meaningfully by 15% from its October high.
In December, Biosyent announced that it would buy back and cancel up to 6.54% of its outstanding shares over the course of a year. This indicates that the stock may be cheap.
At $8.24 per share as of writing, Biosyent trades at a forward price-to-earnings ratio of about 19.4. Currently, Thomson Reuters has a 12-month mean target of $10.40 per share on the stock, which represents about 26% near-term upside potential from the recent quotation.
Biosyent is a highly profitable specialty pharmaceutical company with a recent net margin of 25.5%. It sources, acquires, or in-licenses innovative pharmaceutical products that are proven safe and effective to improve the lives of patients, and it sells them in Canada and internationally.
Other than having a track record of high returns on equity with a recent return of 24%, Biosyent also has no long-term debt on its balance sheet.
Image source: Getty Images.
A toy story you don’t want to miss Along with the market correction from October, Spin Master (TSX:TOY) stock has declined about 29% from its 52-week high of about $59 per share. At about $42 per share as of writing, Spin Master trades at a forward price-to-earnings ratio of about 16, which is a decent value for its growth potential.
Spin Master is a leading global toy and children’s entertainment company with a strong track record of innovating, while generating value for shareholders. There’s excitement at Spin Master. Just last month, the company signed a three-year global licensing agreement with Warner Bros. for DC starting in spring 2020 — to create toys in the boy’s action category, including remote control and robotic vehicles, water toys, and games and puzzles.
At the start of the year, Spin Master premiered its new original animated preschool series, Abby Hatcher, on Nickelodeon. The series will be rolled out internationally this year. Abby Hatcher is the eighth series from Spin Master Entertainment and comes from the same team of producers and directors that made PAW Patrol a success.
Currently, Reuters has a 12-month mean target of US$43.40 (or about CAD$56.42) per share on the stock, which represents about 34% near-term upside potential from the recent quotation based on a more conservative foreign exchange of US$1 to CAD$1.30. So, now’s a good time to pick up some shares.
Investor takeaway By buying Biosyent and Spin Master today and on any further dips, investors should be rewarded over the next 12 months and beyond. Here are more Foolish ideas for amazing growth.
Fool contributor Kay Ng owns shares of Biosyent Inc. and Spin Master. The Motley Fool owns shares of Spin Master. Spin Master is a recommendation of Stock Advisor Canada. Biosyent is a recommendation of Hidden Gems Canada.