According to Bank of Montreal, if Canada’s senior equity market and the ninth-largest stock exchange in the world can ride on the U.S. momentum, it could set new records next year.
BMO analysts believe that with the favourable market outlook, Canadian stocks offer an attractive relative value opportunity within North American markets. Likewise, if the U.S. and China forge a trade deal, the TSX could jump by as much as 12%.
Before the breakout in 2020, why not snatch up four fantastic stocks right now?
Great value plays
Air Canada is the surprise package in 2019, despite the grounding of its fleet of Boeing 737 MAX aircraft in April. Canada’s flagship carrier has been impressive investors.
The stock is up 93.37% year to date, and analysts are recommending a buy rating while projecting the current price of $50.20 to climb by another 29.5% in the coming months. Air Canada ranks number seven in the first edition of the TSX 30 list, which was released by TMX Group last September.
The list is composed of the top 30 performing Canadian stocks this year. Likewise, the companies in the TSX 30 are the growth stocks with three-year returns of over 125%. Air Canada has a three-year return of +346%.
Parkland Fuel is an energy stock that is having an impressive run this year. The shares of this oil and gas refining and marketing company have gained 37.6% so far in 2019. Analysts covering the stock see a potential increase of 26.6% from its last price of $47.38.
Aside from the capital gain, you can earn passive income from the 2.52% dividend. The company expects to deliver a full-year adjusted EBITDA of $1.24 billion at the close of 2019. As of the first nine months ended September 2019, Parkland delivered strong financial and operating performance across all segments.
Pembina is a must-own stock before the new year. This midstream and transportation provider of crude oil, condensate, NGL’s and natural gas has paid out more than $6 billion in dividends over the last 21 years. It is also one of the Canadian Dividend Aristocrats, and currently yields a juicy 5.16%.
Performance-wise, Pembina is widely known for finishing projects on schedule and right on budget. But nine of the 13 major projects over the last six years were completed below budget. The stock’s potential upside is 28.5%.
Savaria is well positioned to post impressive growth numbers as the Canadian population grows. The mobility products industry is relatively young but is growing extremely fast. This $716.6 million firm provides products and modifications, such as wheelchair conversion kits for vehicles and stairlifts.
In the next 10 years, Canadians over the age of 65 will increase by 50%. Savaria will be the undisputed market leader in this space. This industrial stock pays a 3.23% dividend, with price forecasted to climb from $14.21 to $19 or a potential increase of 33.7% in the months ahead.
If the TSX is due for a breakout in 2020, now is the best time to revamp your portfolio with four fantastic stocks. Air Canada, Parkland Fuel, Pembina, and Savaria will produce a bumper crop for would-be investors.
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Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends PEMBINA PIPELINE CORPORATION and Savaria. The Motley Fool recommends and owns TMX Group.