For new investors looking to gain exposure to the equity markets, one effective strategy is to invest in low-cost index funds that track popular indices like the S&P 500. However, investors with a higher risk tolerance may also consider allocating a portion of their portfolio to quality growth stocks on a regular basis to potentially grow their wealth over time.
Two Canadian stocks worth considering for an investment of $1,000 are Enerflex and Secure Energy Services. Enerflex, with a market cap of $950 million, specializes in energy infrastructure and energy transition solutions, offering natural gas, low-carbon, and treated water solutions. Despite reporting higher revenue in the first quarter of 2024 compared to the previous year, Enerflex saw a decrease in gross profits and adjusted EBITDA due to margin compression. The company has a strong contracted revenue base and aims to improve its core operations’ profitability while reducing balance sheet debt.
Secure Energy Services, valued at $3.8 billion by market cap, operates in waste management and energy infrastructure in Canada and the United States. In the first quarter of 2024, the company closed a significant asset sale, resulting in a decline in sales and adjusted EBITDA. Despite this, Secure Energy Services reported positive funds flow from operations and free cash flow, along with a sustainable dividend payout ratio. Analysts are optimistic about the stock’s potential for growth in the next 12 months.
