It’s always good news when stocks perform better than expected. What’s even better is when they’re expected to grow more.
That’s the case for the three stocks I’ll be covering today. All three have already seen some impressive growth, but analysts predict it’s only the beginning. More growth could be coming, and soon.
This stock has been on a hot streak lately, with shares reaching an all-time high recently after the company beat analyst expectations. Shares jumped almost 15% May 17 after CAE announced a 49% boost in profits for the fourth quarter. Since that time, shares have come down a bit to around $34.50 at the time of writing,
Even better, the company actually has an order backlog that reached a record of $9.5 billion, again exceeding its own expectations. This means not only does the company have a recurring nature of overall revenue but a strong backlog to keep cash flows coming. Analysts now predict the stock could hit $37 per share in the next 12 months, and the way things are going, that could be soon.
While Onex still has a way to go before reaching its all-time high near $100 per share back in 2017, it’s well on its way. Obviously, this has to do with the company’s recent purchase of WestJet Airlines for $3.5 billion. The news sent shares of Onex up about 8%. But that’s not the only reason investors should be excited about this stock.
Onex has about $31 billion in assets under management, so investing in the aerospace industry isn’t anything new. In fact, the company tried to purchase Air Canada back in 1999. And its financial results have remained strong, with its recent Q1 results coming in at $195 million in earnings, and $1.6 billion in cash and near-cash on hand.
Yet this stock is still definitely undervalued, with an opportunity for investors to get in. Trading at about $77.75 at the time of writing, analysts predict the stock to jump to $90 or even $100 per share in the next 12 months.
The latest earnings results were far from stellar from CIBC. Canada’s fifth-largest bank announced pretty much flat numbers year over year, with the second quarter in a row of results that missed analyst expectations. The stock dropped 4.5% from $112 to about $107 per share at the time of writing. But while the results weren’t great, they weren’t a disaster either. And that means there’s an opportunity.
Analysts still think this bank has a solid future ahead of it, predicting the stock to rise between $110 to $140 in the next 12 months. After all, the bank said that while expenses could rise, net interest margins could grow. Having a buy-and-hold strategy means you could see some serious gains, and soon.
If you’re looking for some stocks that have serious potential for a hot summer, I would definitely start with these three. CAE and Onex seem to just be getting started with their gains, and to have a top bank stock like CIBC at this bargain-basement price is simply a steal. Just make sure to grab these stocks before they go!
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Stock #1 is a household name – a one-time TSX blue chip that too many investors have left sitting idly in their accounts, hoping the company’s prospects will improve (especially after one more government bailout).
Still, our analysts rate this company a firm SELL.
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Fool contributor Amy Legate-Wolfe owns shares of AIR CANADA. CAE is a recommendation of Stock Advisor Canada.