Fast TFSA Profits: 3 White-Hot Stocks to Buy Now

Tired of declines? This trio of stocks, including Dollarama Inc. (TSX:DOL), might have the rocket fuel you need.

| More on:
Profit dial turned up to maximum

Image source: Getty Images

Hi there, Fools. I’m back to highlight three stocks that soared last week. Why? Because after a stock spikes over a short period of time, one of two things usually happens:

  • the stock continues to soar as momentum-oriented traders jump on for the ride; or
  • the stock pulls back sharply as value-oriented investors lock in profits.

Holding on for the long term is still the most prudent path to wealth. But knowing how to play big short-term swings can add some extra pop to your overall returns — especially in your TFSA account where the gains are tax-free.

Without further ado, let’s get to it.

Chorus of applause

Leading off our list is Corus Entertainment (TSX:CJR.B), which flew 15% last week.

Corus shares hit an all-time low in 2018 due to the steady decline of its TV unit, but Q2 results last week show signs of a turnaround. During the quarter, consolidated revenue increased 4%, TV ad revenue improved 11%, and free cash flow clocked in at a solid $83.9 million. Moreover, Corus’s net debt-to-profit ratio declined 7%.

“Corus delivered another strong quarter, with double-digit Television advertising revenue growth exceeding our expectations,” said President and CEO Doug Murphy. “Notably, the strength of our free cash flow in the quarter is accelerating our progress towards our leverage targets.”

Corus shares are now up 43.5% year to date and currently sport a solid yield of 3.5%.

Rising dollar

With a gain of 8% last week, discount retail giant Dollarama (TSX:DOL) is next up on our list.

Slowing sales growth has put heavy pressure on the shares in recent months, but recent Q4 results offer some positive signs. During the quarter, revenue increased 13%, same-store sales inched up 2.6%, and net earnings grew 5.6%.

While those aren’t market-thumping numbers, management still felt confident enough to increase the dividend 10% as well as forecast 60-70 new store openings in the new fiscal year.

“This performance demonstrates the resilience of our business model, which rests on well-executed organic growth, our direct sourcing strengths, and our multi-price point strategy,” said President and CEO Neil Rossy.

Even with last week’s spike, Dollarama shares remain off 25% over the past year.

Ironed out

Rounding out our list of gainers is royalty company Labrador Iron Royalty (TSX:LIF), whose shares popped 8% last week.

The stock dipped after the company posted its full-year results last month (production was down from 2017), but with U.S. and China making recent progress in trade talks, Bay Street is beginning to grow bullish.

“If the strong prices and premiums continue in 2019, the policies of the Chinese government on pollution are not materially relaxed, there are no major negative impacts from the China-U.S. trade negotiations,” said the company in its report, “… the 2019 outlook for LIORC will be continued strong cash flows.”

Labrador Iron shares are now up 31% so far in 2019 and boast an attractive dividend yield of 3.2%.

The bottom line

There you have it, Fools: three red-hot stocks worth looking into.

As always, they aren’t really formal recommendations. Instead, view them as a starting point for further research. Momentum stocks are particularly fickle, so plenty of due diligence is 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 stocks mentioned.   

More on Investing

stock analysis

Buy the Dip: 2 Stocks to Buy Today and Hold for the Next 5 Years

These Canadian stocks are trading at discounted valuations, providing an opportunity for buying the dip.

Read more »

bulb idea thinking

Safety in Size? 2 of the Bluest Blue-Chip Stocks I’d Buy Now

TC Energy (TSX:TRP) and another cash cow have huge dividend yields for safe investors.

Read more »

A cannabis plant grows.
Cannabis Stocks

Can Aurora Cannabis Stock Recover in 2024?

Aurora Cannabis stock is down 99% from all-time highs but remains a high-risk bet, despite its cheap valuation.

Read more »

Question marks in a pile
Dividend Stocks

Where Will Brookfield Infrastructure Partners Stock Be in 5 Years?

Brookfield Infrastructure Partners (TSX:BIP.UN) kicked off 2024 with a bang. Where will it be in five years?

Read more »

TFSA and coins

TFSA Investors: 3 Incredible Stocks for 2024

Are you looking for stocks to buy and hold for years for your TFSA? These three stocks could deliver exceptional…

Read more »

A person looks at data on a screen
Stocks for Beginners

3 Warren Buffett Stocks to Hold Forever

Warren Buffett sold some shares in Apple (NASDAQ:AAPL), and the market had questions.

Read more »

Dividend Stocks

Golden Years Gain: Your CPP Benefits at Age 70

CPP users delaying pension payments until 70 will receive substantial monthly income streams in the golden years.

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Dividend Stocks

3 Dividend Stocks You Can Safely Hold for Decades

Top TSX dividend stocks are on sale.

Read more »