The Bulls Are Coming: 2 of the Best Growth Stocks to Buy Now to Get Ahead

Illustration of bull and bear

The U.S. market indices have had a rather rocky start to this month. But the TSX Index still seems to be rolling along, with the average down just north of 2% at the time of writing. Undoubtedly, the Canadian markets may have experienced a milder hit to the chin, given their greater concentration in some of the less-appealing value names.

In this piece, we’ll have a closer glimpse at two Canadian stocks that I think can continue riding higher on the TSX Index’s bull run, which began all the way back in October 2023.

Of course, market volatility should always be expected along the way, especially if you’re a value investor who’s looking to build a position over the course of many months or quarters. With the recent “cooling” in share price momentum, however, I do view this late April as an opportune time to start doing a bit of buying.

Consider shares of Alimentation Couche-Tard (TSX:ATD) and MTY Food Group (TSX:MTY), two intriguing (and tasty) TSX stocks I’d consider buying on the recent wave of weakness.

Alimentation Couche-Tard

Shares of Couche-Tard are starting to come back after briefly correcting from its peak levels of just shy of $87 per share. Undoubtedly, nothing horrific happened to push ATD stock down so quickly. Arguably, such a fast correction is to be expected whenever the long-term chart begins to look a tad parabolic. With shares now up close to 4% from their recent low of $74 and change, I’d be inclined to be a net buyer on the way up.

Why?

The stock’s looking a tad cheap at 18.7 times trailing price-to-earnings (P/E). With a dividend yield of close to 1%, I view ATD not just as an attractive capital gains play but as the ultimate long-term dividend growth juggernaut. The convenience store industry remains fragmented worldwide, opening tons of opportunities for the firm to put its excess cash to work.

With recent chatter swirling around fellow gas station and convenience store firm Parkland Fuel (TSX:PKI) considering a potential sale, something that I noted in my previous piece covering Couche-Tard and potential targets here in Canada, I’d argue that the climate seems perfect for Couche-Tard to step in.

Like Couche, Parkland has also recently corrected. However, I’d wait until the stock falls off a bit further before I’d pin the odds of such a deal as remotely high, given Couche’s value-conscious approach to M&A.

MTY Food Group

MTY Food Group is an intriguing restaurant company that you’re probably familiar with from heading on over to your local mall’s food court. The company has been under serious multi-year pressure, now down more than 31% from its highs. Though the economy may be in a tough spot, I continue to find the mall food court to offer great deals for hungry consumers. Sure, shopping malls may be economically sensitive.

However, remember that not all mallgoers are big spenders. Some may just wish to grab a bite before catching a film at the cinema. Others may just want a haircut or some groceries from certain stores. And perhaps there are some that just want to go window shopping. Either way, the food court is sure to cash in on hungry shoppers with a wide range of flavours. All considered, MTY stock looks like a buy while it’s yielding more than 2.3% and trading at 11.4 times P/E.

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