Here are the top three TSX stocks of 2019. The companies are not the famous names you often hear or read about. However, the shares have delivered superior gains as the year-end approaches.
Top-performer no. 1
The “real” deal this year is a $1.1 billion tech stock from Markham, Canada. Real Matters (TSX:REAL) is a leading developer and provider of technology and network management solutions to mortgage lending and insurance industries in Canada and the U.S.
Real Matters outperformed the market. As of this writing, the stock is trading at $12.92 per share, which is 226.26% higher than the price at the start of 2019. Had you invested $50,000 in the stock on January 2, your money would be worth $163,130 today.
The company displays excellent network management capabilities as it works with independent qualified Field Agents through its proprietary technology.
The collaboration creates a marketplace for mortgage lending and insurance industry services. About 90% of mortgage appraisal services come from the U.S.
Real Matter’s growth story is impressive. If your investment perspective is long term, the company has a long runway for growth.
Top performer no.2
Alacer (TSX:ASR) is a gold mine in 2019. This $2 billion company from Denver, Colorado, is a leading low-cost intermediate gold producer. The company has 80% interest in the world-class Çopler Gold Mine in Turkey.
The gains of the stock so far this year is 166.67% and is presently trading at $6.72 per share. A small $10,000 investment would have earned $16,667 in less than 12 months.
The mining operations are in Turkey. It’s where the company can pursue opportunities for further expansion of its world-class operating base. The ultimate goal is to become a sustainable multi-mine producer.
This stock is an exciting long-term investment prospect. The Çopler Mine processes ore through two producing plants. But with the completion of the sulfide plant, it can produce over 3.5 million ounces at first quartile All-in Sustaining Costs. Alacer expects to generate robust free cash flow for the next two decades.
Top performer no.3
Not too far behind from Alacer is another basic materials stock. Silvercorp (TSX:SVM)(NYSE:SVM) is a company from Vancouver, Canada. This $1.2 billion low-cost silver-producing mining firm has multiple mines in China.
From $2.96 at the beginning of the year, SVM is currently trading at $7.14 per share, or a huge 141.21% gain. The stock pays a small 0.5% dividend, with a payout ratio of 9.62%.
Silvercorp’s approach to mining differs from other exploration companies in North America. Rather than drilling for years to build a resource for eventual sale, Silvercorp aims to operate the soonest time possible and run a profitable business. The strategy is working so far.
Success comes in three steps. Silvercorp acquires a project then explores to determine its potential. The company then develop mine operations to generate profits before the potential is wholly drilled off. Silvercorp uses cash flows from operations to explore, expand, and accelerate production.
A tech stock that’s not Shopify and basic materials stocks than mines gold and silver are the top three stocks of 2019. You might want to include Real Matters, Alacer, and Silvercorp in your 2020 stock portfolio.
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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 Christopher Liew has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. Shopify is a recommendation of Stock Advisor Canada.