Gen Z Investors: 2 Canadian Growth Stocks to Get You Started!

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It’s never too early to get started investing. In fact, the earlier, the better. So, Gen Z’s should look to put away a portion of their income to invest in shares of solid companies at decent multiples. After the recent wave of volatility hit the broader TSX Index, I’d argue now is a great time to dip a toe in the investment waters. Now, the waters may be choppy, but it’s times when other investors are running scared when there’s more reward to be had. Indeed, if you can act as a contrarian and scoop up what others are in a panic rush to sell, you can get a pretty decent bang for your buck.

Indeed, Gen Z investors may still be incredibly young, but it doesn’t take a whole lot to get started investing. Even with a relatively small sum ($500 or so), one can learn about Mr. Market and how to capitalize on his mispricing of securities during times of pessimism.

Without further ado, let’s look at two starter stocks that may be worth consideration right here:

Alimentation Couche-Tard

Shares of Alimentation Couche-Tard (TSX:ATD) may be flirting with all-time highs again, but I still view it as a great buy. The company has a proven, predictable earnings growth trajectory. And best of all, it’s relatively defensive, given the nature of the goods it sells (think gas and food items). Amid inflation, Couche-Tard has really shined, especially with its own branded line of consumable goods.

As the company continues on its growth path with a robust five-year plan, I’d be willing to keep buying shares as they go up. After surging to nearly $75 per share on Monday’s upbeat session, ATD stock isn’t as cheap as it was just a few months ago, at 17.7 times trailing price-to-earnings. Still, I view it as a reasonable price tag for one of the best earnings growers in the country.

My takeaway? ATD stock is a great play for beginners, thanks to its strong momentum, decent valuation, and simple (but effective) business model.

Apple

Up next, we have Apple (NASDAQ:AAPL), a firm that’s slated to have its “Scary Fast” event later today. Indeed, the event should see a new slate of Mac computers that could help give a nice jolt to a firm that’s been under fire of late due to a relatively slow start for the iPhone 15 in the Chinese market. With earnings on tap later this month, we’ll get a gauge of where the firm stands domestically. Either way, the stock seems oversold right now, as the negative headlines continue flowing in.

In the long run (yes, CEO Tim Cook runs the firm for the long term), Apple is a magnificent firm with a potentially ground-breaking new product (Vision Pro) that could make waves in 2024. I think the potential of the product is being discounted. As such, new investors may wish to consider nibbling right here, while AAPL stock’s in correction territory.

Should Apple miss on earnings (it’s been a terrible season for many mega-cap tech firms), Canadians may have a golden opportunity to snag the iPhone maker at an even better price, perhaps closer to the $150 support level.

The post Gen Z Investors: 2 Canadian Growth Stocks to Get You Started! appeared first on The Motley Fool Canada.

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Fool contributor Joey Frenette has positions in Alimentation Couche-Tard and Apple. The Motley Fool recommends Alimentation Couche-Tard and Apple. The Motley Fool has a disclosure policy.Fool contributor Joey Frenette has positions in Alimentation Couche-Tard and Apple. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Apple. The Motley Fool has a disclosure policy.