While investors may be nervous about a market crash in this shaky economy, you wouldn’t know by the performance of the S&P/TSX Composite Index this week. It climbed another 77 points on August 6. Instead of betting on a correction, some TSX investors may want to simply ride this red-hot wave. Today, I want to look at three stocks that are scorching right now and could continue this trend to the New Year.
TSX investors: This tech stock has been a monster in 2020
Back in March, TSX investors were in the throes of some of the fastest descents into a bear market in history. At that time, there was one tech stock that continued to perform well in the face of catastrophe. Kinaxis (TSX: KXS) has carried that momentum well into the late spring and early summer. Its shares have soared 123% in 2020 as of close on August 6.
The company released its second quarter 2020 results on August 5. Total revenue increased 45% from the prior year to $61.4 million. Moreover, adjusted EBITDA climbed 94% to $22.4 million. Kinaxis has managed to perform well in this bad environment. Demand for improving supply chains will only increase after this historic crisis. Kinaxis is well-positioned to grow in the years to come.
Like many of its peers in tech, Kinaxis possesses pricey fundamentals. However, TSX investors should feel good about its growth trajectory and its immaculate balance sheet.
Why you should keep rolling with gold and silver miners
Gold and silver have put together an incredible run in 2020. Before this year kicked off, I’d suggested that investors should bet on precious metals rather than ride with digital currencies like bitcoin. Gold has soared to record highs this year, while the spot price of silver has started to gain serious momentum this summer. TSX investors should continue to bet on this red-hot sector.
Agnico Eagle Mines is engaged in the exploration, development, and production of mineral properties in Canada, Mexico, and Finland. Shares of Agnico Eagle Mines have climbed 40% in 2020 so far. In Q2 2020, the company increased its production guidance for the fiscal year as it ramped up operations. It is on track for a strong Q3 and Q4.
TSX investors: One comeback story to hold for the rest of the year
Maxar Technologies (TSX: MAXR)(NYSE: MAXR) provides earth intelligence and space infrastructure solutions to a global client base. The stock may have been left for dead by many TSX investors as it fell into single-digit price territory in the spring of 2019. However, the company has managed to make some solid steps forward in 2020. Shares of Maxar have soared 250% year-over-year as of close on August 6.
The company made solid strides in its second quarter 2020 results. Maxar closed the sale of its MDA space business in April, bringing in $304 million in cash. It also made progress with its debt restructuring.
Shares of Maxar last possessed a P/E ratio of 10 and a price-to-book value of 1.7, putting the stock in attractive value territory for TSX investors.
