The Motley Fool

3 TSX Stocks to Hold for Decades

Image credit: Photo by CIRA/.CA.

Investors are likely hoping that the second half of 2020 will bring more good news that the first half. The domestic and global economy has taken a hit due to the COVID-19 pandemic. Global markets were throttled in the late winter and early spring. Fortunately, central bank support and radical new government programs managed to renew faith for investors.

Today, I want to look at three TSX stocks worth holding for the future.

Why this TSX stock is perfect for a future-oriented portfolio

Canadians should target TSX stocks in growing industries. ATS Automation (TSX:ATA) provides factory automation solutions to a global client base. Shares of ATS Automation have dropped 16% in 2020 as of close on July 8. Back in May, I discussed why investors should look for exposure to automation.

Allied Market Research recently forecast that the global factory automation market would reach $368 billion by 20, which would represent a solid compound annual growth rate of 8.8% from 2018 to the end of the projected period. The company released its fourth-quarter and full-year results on May 27.

Revenues rose 10% year over year to $382.1 million and EBITDA increased marginally to $43.2 million. Moreover, Order Bookings climbed 19% from the prior year to $356 million. The stock boasts solid growth potential and it last had a favourable price-to-book value of 1.9.

The 10 Best Stocks to Buy This Month

Click here to learn more!

This rising star in the financial space is worth owning for decades

Goeasy (TSX:GSY) is a Mississauga-based company that provides loans and other financial services. It is notable for its role as a lender to subprime borrowers. Shares of this top TSX stock have dropped 23% in 2020 as of close on July 9.

Back in April, I’d discussed why goeasy was a perfect target for long-term growth. The company released its first quarter 2020 results on May 6. Revenue rose 20% from the prior year to $167 million on the back of 33% growth in its loan portfolio to $1.17 billion.

In Q1 2020, goeasy generated $242 million in total loan origination – up 10% from Q1 2019. While goeasy withdrew its three-year guidance, it reiterated its strong position in the face of the current crisis.

Shares of goeasy last had a price-to-earnings ratio of 11 and a P/B value of 2.1, putting the TSX stock in attractive value territory. Moreover, goeasy stock offers a quarterly dividend of $0.45 per share. This represents a 3.4% yield.

One more TSX stock to consider this July

The nutrition and supplements market have continued to post strong sales to kick off this new decade. Leadership at Jamieson Wellness touted this trajectory, which is supported by an aging population, when it launched its IPO. Shares of Jamieson have climbed 41% in 2020 so far.

In Q1 2020, the company reported revenue growth of 16.5%. The COVID-19 pandemic has boosted interest in Jamieson’s health products, at least to start the spring.

Consumer purchases were up in the year-over-year period. While Jamieson is pricey after its hot start in 2020, this is a TSX stock that needs to be on your radar for the long haul.

Don't sleep on these other future stocks . . .

The 10 Best Stocks to Buy This Month

Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.

Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.

Click Here to Learn More Today!

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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.