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Market Rally: 2 Must-Own Super Stocks

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The S&P/TSX Composite Index plunged 447 points on April 30, which may put some doubts in the minds of investors. North American stocks enjoyed a market rally in April, but the TSX was not able to recoup all its losses.

Whether or not this market rally has the legs to last into May is yet to be determined. Today I want to look at two super stocks that I’m targeting no matter how the broader market behaves.

Top super stock: Jamieson Wellness

Last summer, I discussed why Jamieson Wellness (TSX:JWEL) had just scratched the surface of its potential. That is why it is the first super stock I want to cover today. Shares of Jamieson have climbed 77% year-over-year as of close on April 30. The stock has climbed 22% in 2020 so far in the face of severe turbulence.

In 2019, Jamieson reported revenue growth of 7.9% to $345 million and adjusted EBITDA growth of 12.2% to $75.9 million. The company saw a huge boost due to its expansion into China. It aims to maximize its presence in Asia in 2020, while also bolstering its e-commerce efforts. Jamieson also has its eyes on the U.S. market. Overall, it managed to achieve the high end of its guidance for the full year.

Investors can expect to see Jamieson’s first quarter 2020 results on May 13. The company released its preliminary Q1 2020 results on April 8. Revenue is expected to increase to between $83 million and $84.5 million compared to $72.6 million in the prior year. Revenue for its international branded products posted 50% growth on the back of strong demand in China and Eastern Europe.

Jamieson stock has considerable momentum right now, but it is undeniably pricey to start the month of May. This super stock last had a price-to-earnings ratio of 39 and a price-to-book value of 4.7. Value investors may want to wait for a more attractive entry point in 2020.

Go for gold!

In late February, I warned investors that the global COVID-19 outbreak could spur a rush into safe havens like gold. The yellow metal hit a seven-year high in 2020 and is currently hovering around the $1,700 per ounce mark. That is one of the reasons Barrick Gold (TSX:ABX)(NYSE:GOLD) is my other super stock to watch.

Barrick Gold is the second-largest gold producer in the world. Shares of Barrick Gold have climbed 48% in 2020 as of close on April 30. The stock has soared 111% year over year. Investors can expect to see its first-quarter 2020 results on May 6.

Like its peers, Barrick will benefit from an increase in the spot price of gold. In its preliminary Q1 2020 report, Barrick announced sales of 1.22 million ounces of gold and 110 million pounds of copper. President and CEO Mark Bristow said that the results showed that Barrick was on track to meet its guidance for the full year. This is an impressive feat in the face of the COVID-19 pandemic and the subsequent lockdowns.

Barrick is a super stock because of its role as one of the world’s top gold producers. It has also demonstrated that it can weather the turbulence caused by the COVID-19 outbreak.

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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 Ambrose O'Callaghan has no position in any of the stocks mentioned.

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