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Wherever the Market Goes, I’m Buying These Top TSX Stocks

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Almost all TSX stocks have shown a sharp recovery from their record lows in March. Canadian broader markets have soared around 40% in the last three months, marking one of the epic recoveries of all time.

However, there are some stocks that are still trading way below their fair values and could be readying for a solid upside. So, if you have some cash, consider these TSX stocks with attractive growth potential.


Gold miner stocks have been some of the best performers so far this year. Higher yellow metal prices significantly positively impacted their profits in the last few quarters. Canadian gold miner B2Gold Corp. (TSX:BTO)(NYSE:BTG) stock has soared more than 60% so far this year.

It is currently trading at its all-time high and still looks reasonably valued. Many gold miner stocks are notably up this year and are trading at sky-high valuations. This is one important aspect that differentiates BTO from its peers.

Its production growth notably increased while the cost lowered in the last few years. In 2020, B2Gold aims to produce one million ounces of gold, nearly 5% higher than the last year.

Notably, gold is expected to continue its upward march at least in 2020. Geopolitical tensions and volatile equity markets could force investors to turn to safe-havens like gold. Higher gold prices will push up miners’ earnings, ultimately boosting their stock prices.

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Shaw Communications

A monthly dividend payer Shaw Communications (TSX:SJR.B)(NYSE:SJR) could be an attractive pick in such uncertain times. The diversified telecom company offers a dividend yield of 5.4%. It has not yet fully recovered from the COVID-1 crash and has lost 20% so far this year.

With such a juicy yield and a discounted valuation, Shaw Communications stock looks like a steal. Even if broader markets crash in the near term, Shaw stock will remain relatively, resilient — mainly driven by its stable earnings and already cheaper valuation.

Its wireless segment, Freedom Mobile offers huge growth potential in the low-cost space. It has shown some notable customer additions in the last few quarters. The management has forecast $700 million in free cash flows for 2020, an increase of more than 30% than in 2019.

TC Energy

TC Energy (TSX:TRP)(NYSE:TRP) is an energy midstream company without significant exposure to volatile crude oil prices. Apart from the energy midstream, the company is also involved in power generation. It generates stable cash flows that enable stable dividends, unlike oil-producing companies.

TRP stock yields almost 6% at the moment, notably higher than TSX stocks at large. Interestingly, it has increased dividends for the last 20 consecutive years. Investors should note that dividend growth is also equally important, as yield plays a big role in driving total returns over the long term.

TC Energy intends to invest approximately $18 billion in capital projects over the next three years. It should expand its pipeline network, and further enhance its connectivity to key markets.

While TC Energy may not be a stock that could create significant wealth in a shorter time span, it will provide much-necessary stability to the 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 Vineet Kulkarni has no position in any of the stocks mentioned.

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