3 Popular Stocks Hitting New 3-Month Highs

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

Hand arranging wood block stacking as step stair with arrow up.

Image source: Getty Images

Hi there, Fools. I’m back to call your attention to three stocks trading near their three-month highs. Why? Because after a given stock rallies over a short period of time, one of two things tends to happen:

Buying and holding stocks is still the most reliable way to build wealth. But knowing how to play short-term swings can also help maximize your returns.

Let’s get to it.

Swinging Bell

Leading off our list is telecom behemoth BCE (TSX:BCE)(NYSE:BCE), which is up 5% over the past three months and trading near its three-month high of nearly $63 per share.

BCE’s Q1 results last month came in below expectations, but that didn’t stop Bay Street from bidding up the shares. Despite missing EPS and revenue estimates, BCE still managed to grow total wireless and internet customers 3.1% and 24.9%, respectively.

“With a favourable profile for all our operating segments as we move forward in 2019, we expect continued free cash flow generation to enable our capital investment plans while fully supporting the increased BCE common share dividend for 2019,” said CFO Glen LeBlanc.

BCE shares currently offer a healthy dividend yield of 4.9%.

Runaway train

Next up we have railroad giant Canadian Pacific Railway (TSX:CP)(NYSE:CP), whose shares are up 13% over the past three months and trade near their three-month highs of about $314.

CP’s recent Q1 results also missed analyst estimates, but as is the case with BCE, the near-term outlook remains favourable. Despite falling short on profit and revenue expectations, management said it expects to grow volumes in the mid-single digits and produce double-digit adjusted EPS growth in 2019.

Due to that confidence, management raised the quarterly dividend 27.5% to $0.83 per share.

“As we look forward, we remain confident in our ability to deliver record financial and operating results in 2019,” said President and CEO Keith Creel.

CP shares currently trade at a forward P/E of 21.

Shop till it drops

Finally, we have e-commerce technologist Shopify (TSX:SHOP)(NYSE:SHOP), which is up a whopping 59% over the past three months and trading near its three-month highs of $309 per share.

The stock soared after posting blowout Q1 numbers in late April, and it’s been on fire ever since. During the quarter, subscription revenue spiked 40% to $141 million, while merchant solutions revenue shot up 58%.

Looking ahead, management sees Q2 revenue of $345 million and full-year revenue of $1.48 billion.

“We’re off to an incredible start this year, as more merchants around the globe choose Shopify to start, grow, and manage their businesses,” said CFO Amy Shapero.

Shopify shares are now up 115% so far in 2019 and sport a price-to-sales of 29.

The bottom line

There you have it, Fools: three red-hot stocks worth checking out.

As always, they aren’t formal recommendations. Instead, look at them as a starting point for further research. Momentum stocks are especially fickle, so plenty of your own 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 companies mentioned. The Motley Fool owns shares of Shopify and Shopify. Shopify is a recommendation of Stock Advisor Canada.

More on Investing

Nuclear power station cooling tower
Metals and Mining Stocks

If You’d Invested $1,000 in Cameco Stock 5 Years Ago, This Is How Much You’d Have Now

Cameco (TSX:CCO) stock still looks undervalued, despite a 258% rally. Can the uranium miner deliver more capital gains to shareholders?

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

potted green plant grows up in arrow shape
Stocks for Beginners

3 Growth Stocks I’m Buying in April

These three growth stocks are up in the last year, and that is likely to continue on as we keep…

Read more »

clock time
Tech Stocks

Long-Term Investing: 3 Top Canadian Stocks You Can Buy for Under $20 a Share

These three under-$20 stocks offer excellent buying opportunities for long-term investors.

Read more »

Arrowings ascending on a chalkboard
Energy Stocks

Beat the TSX With This Cash-Gushing Dividend Stock

Canadian Natural Resources stock is well set up to beat the TSX as it continues to generate strong cash flows…

Read more »

think thought consider
Dividend Stocks

Down 10.88%: Is ATD Stock a Good Buy After Earnings?

Alimentation Couche-Tard (TSX:ATD) stock might not be the easy buy-case it once was. Here’s a look at what happened.

Read more »

money cash dividends
Dividend Stocks

TFSA Dividend Stocks: Earn $1,200/Year Tax-Free

Canadian stocks like Fortis are a must-have in your portfolio to earn tax-free yields for decades.

Read more »