The S&P/TSX Composite Index shed 87 points on June 17. Canadian stocks have hit a few speed bumps in June. However, overall investors should be pleased with the momentum that has been gained since the stock market crash at the start of spring.
Today I want to explore how TSX investors could spend $2,000 as we look ahead to July. Let’s dive in.
TSX investors: Target stocks in fast-growing spaces
Investors should always be on the hunt for stocks that are thriving in a fast-growing space. While healthcare and technology are two of my favourites right now, there are other enticing places for investors to look.
Maple Leaf Foods (TSX:MFI) is a consumer protein company whose shares have climbed 12% in 2020 as of close on June 17. Its stock has surged 28% over the past three months. This time last year, I’d discussed how Maple Leaf could capitalize off the same trend that was propelling Beyond Meat.
Beyond Meat gained huge traction after its IPO in 2019. A market intelligence report last year from BIS Research projected that the global plant-based food and beverage alternatives market would reach $80 billion by 2024.
This would represent a compound average annual growth rate (CAGR) of 13% over the forecast period. Fortunately for TSX investors, Maple Leaf jumped on this train in 2017.
This Canadian food staple acquired Lightlife Foods in early 2017. Since then, Maple Leaf has continued to invest aggressively in its plant-based alternatives product offerings.
In its first quarter 2020 results, the company reported sales growth of 25.9% in its Plant Protein Group. Investors looking for exposure to this promising space should consider Maple Leaf stock in the summer.
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Don’t forget about income
Earlier this week, I’d discussed the growing renewable energy sector. TransAlta Renewables offers TSX investors exposure to renewables. Moreover, it is a fantastic stash for investors seeking income. In the first quarter of 2020, TransAlta reported comparable EBITDA of $118 million over $116 million in the prior year.
Shares of TranAlta last had a favourable price-to-book value of 1.7. In April, it declared a monthly dividend of $0.07833 per share, which represents a tasty 6.5% yield. Moreover, it boasts an excellent balance sheet.
Technology has been a star in 2020
Many Foolish readers will already be familiar with star technology stocks like Shopify and Kinaxis this year. However, Real Matters (TSX:REAL) has managed to fly under the radar. The company provides technology and network management solutions to mortgage lending and insurance industries in Canada and the United States.
Shares of Real Matters have climbed 105% in 2020 so far. The company put together a strong-second quarter 2020 on the back of a robust U.S. mortgage market. Management expects the continued low interest rate environment to underpin earnings going forward.
Real Matters is a great growth stock to stash for the long term. The company also possesses an immaculate balance sheet.
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. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. The Motley Fool recommends Beyond Meat, Inc. and KINAXIS INC.