The TSX-listed Canadian stocks we’ve identified are expected to double or triple their net income over the next three years
SmallCapPower | August 23, 2021: Earnings growth gives investors a good snapshot of how efficiently companies have managed their operations and grown their profits. Investors typically prefer stocks with higher net-income growth rates, as they’re better suited for paying dividends or buying back shares, both of which increase investor returns. The four TSX-listed Canadian stocks we’ve discovered are expected by Bay Street analysts to at least double or triple their net income over the next three years.
*Share price data and other metrics as of August 13, 2021
Cargojet Inc. (TSX:CJT) – $188.15
Airlines – Freight
Cargojet is Canada’s leading provider of time-sensitive overnight air cargo services and carries over 1.3 million pounds of cargo each business night. CJT’s air cargo business activities include the operation of domestic overnight air cargo co-load network between 14 cities in Canada, as well as provisions of dedicated aircraft to customers. CJT also operates scheduled international routes for various cargo customers between the U.S. and Bermuda, between Canada and Germany, and between Canada, Columbia, and Peru.
- Market Cap: $3,210.3M
- YTD-Return: -12.4%
- 1-Year Share Price Return: +2.7%
- 30-Day Average Trading Volume: 80,640
- Net Income (LTM): $37.4M
- F2023 Net Income: $113.3M
- 3-Year Net Income Growth: +202.9%
Northland Power Inc. (TSX:NPI) – $40.05
Utilities
Northland Power is a global developer, owner and operator of sustainable infrastructure assets. The Company owns, or has an economic interest in, 2,429 MW (net 2,014 MW) of operating generating capacity and 382 MW of generating capacity under construction, representing the Deutsche Bucht offshore wind project in the German North Sea and the La Lucha solar project in Mexico. Northland also owns a 60% equity stake in the 1,044 MW Hai Long projects under development in Taiwan and operates a regulated utility business in Colombia. NPI stock is currently yielding 2.8%.
- Market Cap: $9,045.8M
- YTD-Return: -12.3%
- 1-Year Share Price Return: +8.4%
- 30-Day Average Trading Volume: 554,140
- Net Income (LTM): $184.7M
- F2023 Net Income: $544.8M
- 3-Year Net Income Growth: 195.0%
AcuityAds Holdings Inc. (TSX:AT) – $10.70
Technology
AcuityAds is a Canadian tech company operating in the marketing vertical of the AdTech industry that provides marketers a solution for digital advertising. It operates an advertising platform that brings programmatic and automated capabilities using proprietary machine learning and artificial intelligence technology. The Company offers targeted ads, identifying consumers based on their shopping intent and delivering ads more likely to appeal to them. AT also operates a self-service platform called illumin.
- Market Cap: $646.8M
- YTD-Return: -25.1%
- 1-Year Share Price Return: +409.5%
- 30-Day Average Trading Volume: 447,400
- Net Income (LTM): $9.8M
- F2023 Net Income: $27.7M
- 3-Year Net Income Growth: +182.8%
Nutrien Ltd. (TSX:NTR) – $79.63
Potash
Nutrien is a Canadian fertilizer company based in Saskatoon, Saskatchewan. It is the largest producer of potash and the third largest producer of nitrogen fertilizer in the world. It has 1,500 retail stores and more than 23,100 employees. It is listed on the Toronto Stock Exchange and New York Stock Exchange, with a market capitalization of $34 billion as of January 2018. It was formed through the merger of PotashCorp and Agrium, in a transaction that closed on January 1, 2018.
- Market Cap: $45,444.0M
- YTD-Return: +30.0%
- 1-Year Share Price Return: +56.0%
- 30-Day Average Trading Volume: 859,520
- Net Income (LTM): $964.0M
- F2023 Net Income: $2,124.0M
- 3-Year Net Income Growth: +120.3%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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