These Were 3 of the Hottest Stocks in June

Lightspeed POS Inc. (TSX:LSPD) and these two other stocks rose by more than 20% last month and could still be great buys today.

| More on:
Canadian Dollars

Image source: Getty Images

Investing in stocks that are rising in value is a good strategy because it means there’s a lot of excitement surrounding the companies. And as long as the stock prices haven’t gotten too expensive, it could be a good option to invest in as the momentum could carry them even higher in value. Below are three stocks that were some of the best-performing stocks in June that could still be great investments today.

Lightspeed POS Inc. (TSX:LSPD) rose by 34% during the month and in six months has nearly doubled in value. The recently listed stock has been one of the hottest buys on the TSX this year. One of the reasons behind its recent surge in June was the company released its Q4 results at the end of May, which showed strong sales growth of 36% year over year. Lightspeed also expects to see revenue growth of up to 42% for fiscal 2020 as well.

While it may have posted a big loss for the quarter, investors are generally very excited when they see a good growth stock, especially one that’s seeing its rate of growth increase rather than decline. The one concern around the stock is sure to be whether it’s too expensive.

At a price-to-sales (P/S) multiple of around 40 and a price-to-book (P/B) ratio of 15, investors are certainly paying some big premiums to own Lightspeed today. However, if the company can continue its impressive growth, then those multiples will come down.

Hudson’s Bay Co (TSX:HBC) had an even better month with its share price climbing a whopping 49%. It wasn’t a strong quarter that gave it a boost; instead, it was news that the company might be going private. In early June, a group of shareholders owning a majority stake in the company offered to pay $9.45 to buy out the remaining investors.

Prior to the news, the stock was at just $6.37 and the next day shot up to over $9 a share.

And while it might seem like a great deal, a year ago, the stock was trading at around $12. The retailer has been struggling in recent years and there’s been pressure on the company to sell off its real estate assets to free up cash. At a P/B of just 1.1 and P/S of 0.19, the stock is still a cheap buy today and the recent attention might help drive its price up even higher.

Barrick Gold Corp (TSX:ABX)(NYSE:GOLD) was up 23% in June as gold stocks, in general, had a very good month thanks to gold prices rising by 9.5% over the past 30 days. With concerns over stability and a near clash between Iran and the U.S., investors looked to buy up gold stocks amid the instability. However, from what I’ve observed, gold prices typically don’t rise as a result of tensions or conflict, whether real or perceived.

Nonetheless, gold prices have been rising and if they continue to do so, gold stocks like Barrick will continue to be hot buys. It also helps that the company is coming off a strong quarter where sales were up by 17% and Barrick finished in the black for the first time in four reporting periods. The stock has been volatile over the past year with its share price only up a total of 19.7% despite the recent rally.

Although Barrick is trading around its 52-week high, with the stock trading at a P/B of only 2.3 and the potential for gold prices to rise higher, it could still produce good returns for investors who buy today.

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.

Fool contributor David Jagielski has no position in any of the stocks mentioned.

More on Investing

Man holding magnifying glass over a document
Investing

The 3 Most Oversold TSX Stocks to Watch Before 2023

Many oversold stocks are merely victims of market circumstances and potentially profitable bargains when they seem downtrodden.

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

A TFSA Contribution Room of $88,000 and 1 Dividend Aristocrat Can Make You $172,330 Richer

A high-yield Dividend Aristocrat in the energy sector is a suitable holding for Canadians with $88,000 available contribution rooms in…

Read more »

Upwards momentum
Investing

Year-End Sales Tracker: 3 Growth Stocks Going for Value Prices

Growth stocks like Aritzia (TSX:ATZ) are on discount.

Read more »

Dollar symbol and Canadian flag on keyboard
Investing

2 Canadian Stocks I’ll Be Buying Hand Over Fist in 2023

Alimentation Couche-Tard (TSX:ATD) and another top growth stock could increase dividends in 2023.

Read more »

falling red arrow and lifting
Stocks for Beginners

3 TSX Stocks That Could Rally Before 2023 Begins

Here are three TSX stocks to consider, even if inflation remains adamant next year.

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

2 Dividend Stocks to Buy Now Under $50

Here are two of the best under-$50 dividend stocks you can buy in Canada right now.

Read more »

oil and natural gas
Energy Stocks

2 TSX Energy Stocks That Could Break Through the Roof in December 2022

Did you miss the energy rally? Here are two TSX energy stocks that still offer handsome growth potential.

Read more »

Investing

Is Now the Time to Buy Electric Vehicle Stocks?

If you're willing to take a risk, Rivian and Tesla are two EV stocks to consider right now.

Read more »