The TSX has been off to a poor start this year, and with the economy potentially setting itself up for a bad year, it’s more important than ever to find stocks that can outperform the market. The stocks that can rise even in tough economic times are gems and can provide investors with great long-term stability.
A big risk in investing that you cannot diversify away is market-related risk, which normally brings down a stock’s price in troubled times, even though there may be nothing wrong with the underlying company. However, the four stocks below have shown great resilience in the first few months of the year and have performed much better than the TSX.
Canada Goose Holdings Inc. (TSX:GOOS)(NYSE:GOOS) has seen its stock rise a little under 10% since the start of the year, as it continues to show strong sales growth. While its products are priced at a hefty premium, that has not been enough to deter customers.
In its most recent quarter, Canada Goose saw sales increase by 27%, and the company is on track for a third straight year of positive sales growth. What’s even more impressive is that it has also been able to do this while staying profitable.
Canada Goose could continue to see its share price rise, as retail stocks fall out of favour and investors look for merchants that aren’t dependent on brick-and-mortar stores.
Shopify Inc. (TSX:SHOP)(NYSE:SHOP) has returned to glory after a disappointing finish to 2017, when the share price dropped 12% in the last three months of the year. However, so far in 2018 the stock is up over 50%, and it is fast approaching $200. It might even possible that we the stock reach as high as $250 this year.
The big appeal of Shopify is that it can be used by any merchant that is looking to sell something online. That creates a lot of potential for the company, as the possibilities to grow become limitless, and that makes Shopify a great long-term buy.
BlackBerry Ltd. (TSX:BB)(NYSE:BB) had a little fall earlier this year but has since recovered; year to date the stock is up more than 23%. The once popular handheld maker is continuing to grow its business model, which now focuses on software, security, and self-driving technologies.
While the stock is still a far cry from where it used to be, it is proving to be a good long-term buy. The company has a lot more consistency and stability in its financials, and there is plenty of opportunity for BlackBerry to build on its recent success.
The tech stock has shown significant growth recently with sales up more than 35% in the company’s last quarter. With a lot of recurring revenue, Open Text has a strong base to build from, and that can help provide investors with a lot of stability.
Although the company’s bottom line could be better, Open Text has strong free cash flow, which will help the company reinvest in itself as it continues to grow.
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Fool contributor David Jagielski has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of BlackBerry, Open Text, Shopify, and SHOPIFY INC. BlackBerry, Open Text, and Shopify are recommendations of Stock Advisor Canada.