Turn a Quick Profit in 2019: Here Are 3 Hot Stocks That Bay Street Loves Right Now

Tired of constant declines? This trio of stocks, including Cronos Group Inc. (TSX:CRON)(NASDAQ:CRON), might have the rocket fuel you need.

| More on:

Hey there, Fools. I’m back to highlight three stocks that have risen sharply over the past five trading days. Why? Because after a stock spikes over a short period of time, one of two things usually happens:

The S&P/TSX Composite Index ended 2018 on a downbeat note, so it might make sense to start off 2019 with some red-hot stocks.

Let’s get to it.

Altered outlook

Kicking things off is AltaGas (TSX:ALA), whose shares are up 17% over the past five days. Of course, the embattled energy company is still down 50% over the past year versus a loss of 28% for the S&P/TSX Capped Energy Index.

The stock’s hot start to 2019 could indicate a prolonged turnaround. Last month, management said it expects 2019 funds from operations of $850-950 million with about $1.5-2 billion in asset sales.

“My long-term objective is to drive operational excellence, achieve superior returns on invested capital in our midstream business, and enhance our return across our utilities,” said President and CEO Randy Crawford.

While the recent dividend cut was disappointing for income investors, the current yield of 7.8% is still very scrumptious.

Go with the flow

Next up, we have goeasy (TSX:GSY), which is up 18% over the past five days. Shares of the alternative lender are still down 25% over the past year versus a loss of 11% for the S&P/TSX Capped Financials Index.

Bay Street seems to be getting over its worries about goeasy’s loan quality. Of course, broad insider buying over the past few months suggests that even management believes those concerns are overblown.

“We remain on track to finish 2018 near the mid-point of our guided range for both the ending consumer loan portfolio and the net charge-offs,” CEO David Ingram said in goeasy’s recent Q3 report. “During the quarter we also made several enhancements to our balance sheet.”

Currently, the stock yields a solid 2.4%.

Smoking return

Rounding out our list is Cronos Group (TSX:CRON)(NASDAQ:CRON), whose shares are up 13% over the past five days. The medical marijuana company is up 62% over the past year versus a loss of 12% for the S&P/TSX Capped Health Care Index.

Like all weed stocks, wild short-term swings are pretty common for Cronos. That said, Cronos’s strong start to 2019 isn’t exactly a fluke. After all, tobacco giant Altria took a huge $2.4 billion stake in Cronos last month, suggesting that Cronos is a “best-of-breed” marijuana play.

“We believe that Cronos Group’s excellent management team has built capabilities necessary to compete globally, and we look forward to helping Cronos Group realize its significant growth potential,” said Altria chairman and CEO Howard Willard.

With the stock still off about 20% from its 52-week highs, the recent surge doesn’t seem too risky to climb on.

The bottom line

There you have it, Fools: three momentum stocks worth checking out.

As always, they aren’t formal recommendations. They’re simply ideas for further research. Red-hot stocks can turn cold without notice, so plenty of due diligence is still required.

Fool on.

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.

Brian Pacampara owns no position in any of the companies mentioned. AltaGas is a recommendation of Stock Advisor Canada.

More on Investing

Business man on stock market financial trade indicator background.
Tech Stocks

1 Growth Stock Down 50 Percent to Buy Right Now

There are plenty of growth stocks in the market worth considering, but Shopify (TSX:SHOP) looks like one of the best…

Read more »

You Should Know This
Dividend Stocks

How to Convert a $300 Monthly Investment Into $338 in Monthly Income

If you want a certain amount in monthly passive income, invest a similar amount today and leave the rest to…

Read more »

Increasing yield
Dividend Stocks

3 Income Stocks With Big Yields to Consider in April 2024

If you haven’t yet made your March investments, here are three income stocks to buy the dip and lock in…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

RRSP Investors: Don’t Miss Out on This Contribution Hack!

This hack has so many benefits for you -- not just when you put it in your RRSP but for…

Read more »

edit Sale sign, value, discount
Stocks for Beginners

These 3 Growth Stocks Are on Sale and Set to Surge

Some growth stocks are on sale right now that offer massive long-term potential for investors. Here's a trio to consider…

Read more »

Cannabis grows at a commercial farm.
Cannabis Stocks

Why Canopy Growth Stock Could Double in 2024

Canopy Growth (TSX:WEED) stock saw its share more than double in the last two weeks. So, can it do it…

Read more »

Young woman sat at laptop by a window
Dividend Stocks

3 Dividend Stocks Everyone Should Own for the Long Haul

For investors looking for top-tier dividend stocks to buy and hold for the long term, here are three of my…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Passive Income: 2 Safe Dividend Stocks to Own for the Next 10 Years

Dividend stocks such as Manulife and Fortis can help you generate a stable and recurring passive-income stream.

Read more »