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.
