3 Top Canadian Growth Stocks for June 2023

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It seems as though Canadian investors are getting back on board with investing in growth stocks once more. Multiple stocks are up by double-digits in 2023 alone! Yet this means there are fewer and fewer opportunities for great gains.

Today, I’m going to cover three growth stocks that are up, but in a bit of a dip right now. So that makes them the best choices for a recovery in the near future. Especially once more of the market recovers.

Canadian Tire stock

Canadian Tire Corporation (TSX:CTC.A) shares are up 12% year to date, but have fallen back pretty drastically from the highs of being up 25% back in April. This likely had to do with the company’s earnings results, which showed that Canadian consumers were moving away from non-essential purchases.

As spending slowed for the first time since 2020, it signalled high inflation and interest rates have led to a tightening of spending. Even so, Canadian Tire stock still continued to be a hot spot for these items, especially in the automotive sector.

Yet after years of growth, revenue declined 3.4% year over year, with comparable sales down 4.8% at stores. Net income fell to $42.8 million as well, never mind losing millions of inventory in a fire. So it’s a horrible time for the stock, which honestly, is exactly when you should buy. Shares now trade at 11.4 times earnings, with a dividend of 4.2% to bring in as well.

GFL Environmental

Another steadier path to growth has been taken by GFL Environmental (TSX:GFL). The company continues to report better-than-expected results quarter after quarter, with shares up 24% in the last year, and year to date.

Part of this recent growth comes from strong results, including during the last quarter, for the waste management company. Higher contributions have come from its mergers and acquisitions. Couple that with cost-saving initiatives, and the company continues to push past estimates.

Long-term investors have already been awarded, but more acquisitions are likely on the way. It’s likely that today’s investors will also be rewarded. Perhaps even with a larger dividend in the future.

FirstService

Finally, we have FirstService (TSX:FSV), a residential and brand company that provides management services to thousands of residential communities. It also operates the property services that pretty much all of us know, including College Pro Painters, California Closets, CertPro, and more.

The long-term opportunity remains strong, as stated by analysts. FirstService continues to have a strong track record of bringing in acquisitions and remaining financially stable. It has done well through organic growth, as well as through these acquisitions. Analysts now predict it could see adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $399 million for 2023, which would be a 13% increase year over year.

Shares of FirstService stock are now up 23% in the last year, and 17% year to date. FSV also comes with a modest 0.62% dividend to consider as well. It is, therefore, certainly a strong stock to consider if you’re looking for even more growth not just in 2023, but far beyond.

The post 3 Top Canadian Growth Stocks for June 2023 appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends FirstService. The Motley Fool has a disclosure policy.