Progress shares are again on the scene in 2023. The iShares Canadian Progress Index ETF gained 7.4% to outperform the S&P/TSX Composite Index’s 6.6% rise thus far this yr. Buyers with some money on the aspect searching for the greatest progress shares to purchase proper now could also be spoilt for alternative. Whereas some well-liked progress names together with Shopify are in robust inventory worth restoration mode after taking heavy beatings in 2022, some rising giants are quietly testing new all-time highs.

In case you have $5,000, or any quantity of recent cash to spend money on 2023, chances are you’ll contemplate shopping for MDA Ltd (TSX:MDA) and WSP World (TSX:WSP). Right here’s why I’m bullish about these two progress shares proper now.

MDA inventory

In case you have some $5,000 to take a position, and are looking for a promising Canadian progress inventory to purchase proper now, the native house inventory, robotics, and satellite tv for pc programs expertise pioneer MDA Ltd. inventory must be in your radar.

The $920 million firm is a 50-year-old worthwhile enterprise with well-established moats and a confirmed observe document of profitable venture execution that’s discovering new progress alternatives in a bourgeoning satellite tv for pc expertise house.

MDA inventory is a key nuts-and-bolts play in a worldwide house race that’s gathering sizzling steam. Only in the near past, MDA Ltd. gained a key contract in Latin America to produce antennas to Argentina for satellites designed to deliver high-speed web, digital video, and voice connectivity to 4 international locations – a key progress space for Elon Musk-led SpaceX.

The corporate introduced robust 55% progress in third-quarter 2022 income and 70% year-over-year progress so as backlog to greater than $1.4 billion in November final yr. The corporate is profitable extra enterprise as the worldwide house economic system erupts. Monetary analysts venture a 34% surge in gross sales for 2023 to be accompanied by a 17% growth in normalized web revenue this yr.

Regardless of all this, MDA inventory worth is cheaply valued as we speak. The corporate’s enterprise value-to-revenue (EV/Income) a number of of 1.4 is way under the aerospace and defence common a number of of two.2. Equally, the corporate’s EV-to-EBITDA a number of of seven.3 is the bottom in its peer group and lies far under the peer common of 12.4.

MDA inventory seems to be considerably undervalued, particularly contemplating the corporate is rising income and earnings at a quicker clip than friends. To be clear, the recognized well-established friends embody Northrop Grumman, L3Harris Applied sciences, Maxar Applied sciences, Thales SA, and Airbus SE.

WSP World inventory

WSP World is a well-established infrastructure engineering and design providers enterprise that ought to develop earnings at double-digit charges quickly.

The corporate has efficiently employed an acquisitions-led progress technique to broaden its international footprint and geographically diversify its income streams whereas increasing its earnings margins within the course of.

WSP elevated its income at a compound annual progress price (CAGR) above 10% over the previous 5 years. Analysts venture a robust 16% year-over-year gross sales progress price in 2023 and powerful 17.9% progress in normalized web revenue for this yr.

Most noteworthy, WSP inventory’s web revenue margins expanded from 4.7% again in 2019 to a mean of round 7.5% of income since 2021. Margin expansions had a tremendously constructive affect on WSP’s World inventory valuation. The corporate used to earn 4.5 cents per greenback of income earlier than the pandemic. Now it earns a staggering 7.5 cents per greenback of gross sales. And gross sales are rising at double-digit annual charges.

WSP World is rising each its prime and backside traces fantastically, and the corporate is free money circulation constructive. Buyers’ love for WSP inventory has proven by way of its increasing valuation multiples. Shares are near retouching the all-time highs above $185 reached in late 2021. WSP inventory has gained greater than 220% in worth over the previous 5 years.

Though shares seem richly priced with a ahead price-to-earnings (PE) a number of of 27, momentum should raise shares increased in 2023 as administration continues to execute on acquisitions in addition to it has finished over the previous decade.