With all the devastation resulting from the market crash amid the pandemic, most investors have seen double-digit losses in their portfolios. However, the market correction has also opened up opportunities for investors to make substantial profits. It is all a matter of finding the ideal high-quality stocks that can give you massive returns.
If you have $3,000 in savings, I would suggest a better use for the cash than letting it sit idle. There are two excellent equities you can consider adding to your portfolio to enjoy the fruits of your labour by capitalizing on the returns.
Death and taxes
There are two certainties in life: death and taxes. When it comes to the former, there is one stock you need to capitalize on to make substantial profits, so you have an easier time paying off the taxes.
Shares of Park Lawn (TSX:PLC) have taken a hit amid the pandemic. At writing, the stock is down 23.57% from the start of the year. Park Lawn is the only publicly traded funeral home and cemetery company that trades on the TSX. Despite the sell-off affecting its share prices, the company continues to report substantial sales and earnings growth.
In its most recent quarter, the company experienced 47.5% growth in its revenues and a 41.7% increase in its adjusted net earnings. The decline in its share price is not something to worry about. It actually presents an excellent entry point for investors who have a long-term horizon.
The company continues to expand its portfolio of funeral homes and cemetery properties to gain an edge in the industry. It also offers a juicy 2.02% dividend yield to shareholders with monthly payouts.
Health and wellness
Jamieson Wellness (TSX:JWEL) has performed well on the stock market. The broad market sell-off did not seem to have an impact on the share price of this company. At writing, the stock is up by a massive 42.01% from the start of 2020.
The stock has fared well due to its strong operational performance and a healthy outlook moving forward. There is an increasing awareness about the importance of healthy living amid the pandemic. The company’s expansion into international markets and a growing concern for healthy living is giving a massive boost in demand for its products.
In its most recent quarter, the company’s revenues increased by 16.5%, and its adjusted EBITDA grew by 15.2%. While Jamieson Wellness shares are more expensive, I think it can still witness substantial growth on the back of its excellent performances.
The company also offers a decent 1.21% dividend yield, but its potential capital gains are where the real profits can lie for investors.
Foolish takeaway
I think that now is a good time to buy high-quality stocks for a bargain on the TSX. With economies slowly opening up across the country, there is a high chance that investments like Park Lawn and Jamieson Wellness can give you fantastic returns in the long run.
