3 Stocks That Have Yielded Returns of Over 50% in 2017

Fairfax India Holdings Corp. (TSX:FIH.U) and these two other stocks have seen tremendous growth this year, and it might not be too late to buy.

| More on:

The TSX has had a lousy year to say the least with an overall loss for 2017 so far, and many stocks have been stuck in ranges without any real sustained price increases. A lot of the craze these days is about tech stocks, and with Shopify Inc growing as remarkably as it has, it’s hard to argue. However, I have a list of three non-tech stocks below that have achieved returns of over 50% year-to-date, and it might not be too late to jump on board.

Fairfax India Holdings Corp. (TSX:FIH.U) is a Canadian company that invests in businesses in India through its subsidiaries. Earlier this year, Fairfax acquired an additional 10% stake (and now owns 48%) in Bangalore International Airport Limited, which operates the third-largest airport in India — only behind airports in Mumbai and Delhi.

The stock has been traded on the TSX for over two years, and since its inception, the share price has almost doubled. A lot of the increase has happened recently as, year-to-date, the stock’s price has climbed by over 60%.

A big reason for the company’s rapid climb has been due to its strong growth. In its most recent quarter, Fairfax India recorded revenues of $338 million, which, year over year, is more than a tenfold increase. With earnings per share of $3.53, the stock trades at a very low multiple of just five times earnings and only 1.3 times its book value. There is a lot of potential growth in the stock, especially considering India is one of the largest economies in the world.

Lundin Mining Corporation (TSX:LUN) is another stock with tremendous growth potential, as it has mineral properties in a variety of countries, including the U.S., Portugal, Sweden, Chile, and the Democratic Republic of Congo. The company produces mainly nickel, zinc, and copper. The company’s stock price has increased by over 51% year-to-date with the share price also seeing a persistent climb after releasing its second-quarter results.

In Q2 the company’s revenues of $454 million were up over 32% from the prior year in large part due to an increase in a higher price of metals. Lundin’s operating earnings of $236 million were also up more than 76% from just $134 million in 2016 mainly due to higher commodity prices and increased sales.

IAMGOLD Corp. (TSX:IMG)(NYSE:IAG) has four gold mines spanning three continents and, in 2016, the company produced 813,000 ounces of gold. Year-to-date, the company’s stock price has increased by almost 60%, and in just the past month, it has climbed over 20%.

IAMGOLD also saw a big climb in its share price after strong Q2 results, which saw revenues rise over 18%. The effect of increasing gold prices is evident by the improvement in the company’s gross margins with the most recent quarter seeing margins of over 13% compared with just 10% a year ago. Although the company saw a significant improvement in earnings from a loss of $12.2 million a year ago to a profit of over $506 million in the current quarter, this wouldn’t have been the case if not for impairment reversals.

Despite adjusted net earnings not seeing an improvement in Q2, the company still has a promising future as the price of gold continues to rise. If IAMGOLD can have another strong quarter, the stock price will only continue to grow.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor David Jagielski has no position in any stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of Shopify and SHOPIFY INC. Shopify is a recommendation of Stock Advisor Canada.

More on Dividend Stocks

edit Person using calculator next to charts and graphs
Dividend Stocks

Better Buy: Fortis Stock vs Enbridge

Fortis stock and Enbridge are top dividend stocks on the TSX today. Which stock is better buy for safe dividend…

Read more »

Canadian Dollars
Dividend Stocks

How to Make $1,500 in Passive Income 4 Times a Year

Blue-chip TSX stocks such as Enbridge can enable investors to create game-changing wealth over the long term.

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Dividend Stocks

TFSA: How to Easily Turn $10,000 Into $500/Year of Passive Income

You don't need to be a stock market expert to turn $10,000 into a $500 of tax-free passive income. Here's…

Read more »

protect, safe, trust
Dividend Stocks

Worried About a Recession? 2 TSX Blue-Chip Stocks to Protect Your Capital

If you fear a recession coming on soon, here are two blue-chip Canadian stocks to add to your portfolio for…

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

New TFSA Investors: 2 Top TSX Stock to Create a Self-Directed Retirement Fund

Top TSX dividend stocks are now on sale for new TFSA investors.

Read more »

money while you sleep
Dividend Stocks

Worried About the Market? 2 Dividend Stocks That Let You Sleep at Night

Here's why Restaurant Brands (TSX:QSR) and Enbridge (TSX:ENB) are two top dividend stocks to buy in this uncertain market right…

Read more »

money cash dividends
Dividend Stocks

How 1 Absurdly Cheap Stock Can Generate $100 in Monthly Passive Income

You can generate $100 or more in monthly passive income from one high-yield stock trading at an absurdly cheap price…

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

How I’d Invest $1000 in February to Make Easy Passive Income

Looking to earn some extra passive income in February but don't have much cash? Build an easy portfolio with these…

Read more »