3 Canadian Growth Stocks With Earnings Growth Over 14%

Fresh concern about persistent inflation from the New York Fed’s October services survey has pushed investors to look harder at where pricing power and execution really live. Fast growing Canadian companies where insiders hold meaningful stakes can be one way to align with management teams that feel those same pressures in their own wallets. This article walks through three such stocks from our screener and what makes them worth a closer look.

The three stocks highlighted here offer a compelling starting point if you want exposure to fast growing businesses where insiders have real skin in the game. However, if you want the pick of this theme, these 11 high growth high conviction stocks are the best of the best.

Tenaz Energy (TSX:TNZ)

Tenaz Energy is a Calgary based producer focused on developing offshore natural gas in the Dutch North Sea and oil and gas in Alberta, a profile that fits the fast growth theme where insider ownership backs an ambitious build out of upstream projects.

Tenaz Energy generates about CA$497 million from the production and sale of petroleum and natural gas, giving it scale as a pure upstream producer. The stock’s market value of roughly CA$2.38b puts it firmly in mid cap territory.

For this theme, the key point is how Tenaz Energy is building out a concentrated gas growth story in Europe while insiders keep meaningful skin in the game.

"The build out of high quality Netherlands gas production, supported by multiple rigs across TEN operated, ONE Dyas operated and ENI operated wells, increases exposure to European gas pricing and can support higher revenue as more volumes move into the sales mix."

What happens if one unseen pressure on cash generation and leverage moves in the wrong direction will decide how much of that upside actually reaches shareholders.

If that pressure point matters to you, read the full narrative for Tenaz Energy to see how Tenaz Energy’s growth ambitions and risk profile could be diverging from the headline story.

Aritzia (TSX:ATZ)

Aritzia leans into the screener theme through a fast growing, design to retail apparel model built on its own fashion labels and sold through boutiques and a growing online presence.

Aritzia designs and sells women’s apparel and accessories under its own labels, generating about CA$4.35b from apparel, with a market value near CA$16.7b. That tight focus on owned brands and direct retail is the main growth engine aligned with this screener’s theme.

"Aritzia's geographic expansion strategy, particularly in the United States, has shown strong performance and presents significant growth potential through ongoing boutique openings."

What happens if one unseen pressure on margins in this growth push moves in the wrong direction will matter for shareholders.

That margin pressure is exactly what the full narrative for Aritzia unpacks. It shows where Aritzia’s expansion could be accelerating, masking risk or quietly stalling behind the headline story.

Cascades (TSX:CAS)

Cascades is a CA$1.8b paper and packaging group where the e-commerce focused Packaging Products arm links directly to this fast growth, high insider ownership theme.

Cascades produces packaging and tissue goods through two main divisions. Packaging Products generates about CA$3.04b and Tissue Papers about CA$1.61b. The e-commerce and protective packaging lines act as the clearest growth lever. The stock’s market value sits around CA$1.8b.

For investors tracking faster growing packaging stories, Cascades brings something different through its push into e-commerce friendly boxes and trays, tied to a business model built around recycled fiber and efficiency upgrades.

"Continued ramp up at the Bear Island mill toward Greenpac level efficiencies, combined with targeted reductions in chemical and material usage, should lift Packaging segment productivity and support structurally higher EBITDA margins."

What happens if one underappreciated shift in cost pressure or pricing power moves against that margin story will shape how much value actually reaches shareholders.

To see how that cost and pricing shift could play out for Cascades, read the full narrative for Cascades for the full story on where margins might be accelerating.

Curious About Powerful Alternatives?

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• Zero in on recurring income opportunities through a focused 3 dividend fortresses that screens for yield strength while prices are still under the radar.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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