Investors constantly seek opportunities to balance risk and reward, and the TSX offers a variety of growth stocks that promise significant returns. Among these, Cargojet (TSX:CJT) and Aritzia (TSX:ATZ) stand out as compelling options for investors looking for cheap growth stocks. Both may be on the rise, but there is still so much more to come. So, hereâs why these two companies are worth considering.

Cargojet

First, we have Cargojet stock, with shares up 41% in the last year alone. Cargojet is a leading provider of time-sensitive, overnight air cargo services, operating a fleet of 41 aircraft servicing routes across Canada, the United States, Europe, and Asia. The company's unique position in the logistics sector allows it to benefit from the increasing demand for e-commerce and express delivery services.

Cargojet has been investing heavily in expanding its fleet and enhancing its service capabilities. These investments are expected to drive future growth as the company capitalizes on the growing demand for cargo services. Additionally, Cargojet's partnerships with major carriers and logistics providers further strengthen its market position and growth prospects.

This has been seen through its continued growth and financial strength. Cargojet has demonstrated robust financial performance with a market cap of $1.851 billion and a price-to-earnings (P/E) ratio of 50.57. Despite a high P/E ratio, the companyâs earnings growth justifies its valuation. In the past year, CargoJet has seen a significant increase in revenues and profits due to the surge in e-commerce activities driven by the pandemic-induced shift to online shopping.

In fact, in its latest earnings report, Cargojet posted a 20.9% year-over-year increase in sales to $179 million for the second quarter (Q2) of 2024. The company's backlog grew by 40%, indicating strong future demand. With resilient gross margins of 31% and strategic cost management, Cargojet is well-positioned for sustained growth.

Aritzia

Then we have Aritzia stock, with shares surging after its most recent earnings, now up 79% in the last year alone. Aritzia is a leading fashion retailer known for its high-quality clothing and accessories, primarily targeting women. The company operates over 100 stores in Canada and the United States and has identified an additional 100 locations for expansion in the U.S.

Aritziaâs aggressive expansion plans include opening eight to 10 new stores in the U.S. annually. The company's entry into the men's fashion market through the acquisition of Reigning Champ is expected to drive additional revenue growth. Aritziaâs focus on innovation and staying ahead of fashion trends has helped it maintain a loyal customer base and attract new customers.

This, too, was seen during its earnings. Aritzia boasts a market cap of $4.084 billion and a P/E ratio of 45.40. Over the past few years, the company has consistently reported strong financial results, driven by its successful expansion strategy and strong brand appeal.

Aritzia reported robust financial results for the latest quarter, with revenue growth of 22% year over year, driven by strong same-store sales and new store openings. The companyâs earnings per share exceeded analyst expectations, highlighting its operational efficiency and effective growth strategies. With continued expansion plans and a focus on high-growth markets, Aritzia is poised for sustained growth.

Bottom line

Both Cargojet and Aritzia offer compelling growth opportunities for investors. CargoJet's strategic position in the booming logistics sector, coupled with its robust financial performance and expansion plans, makes it a strong contender for growth investors. Meanwhile, Aritzia's impressive financial growth, market expansion, and brand strength position it as a valuable addition to any growth-oriented portfolio.

So, investors looking for cheap growth stocks on the TSX should consider adding Cargojet and Aritzia to their watchlist. These companies not only offer significant upside potential but also demonstrate strong fundamentals and growth prospects that make them attractive investment opportunities today.

The post 2 Ridiculously Cheap Growth Stocks to Buy Hand Over Fist in 2024 appeared first on The Motley Fool Canada.