3 Must-Own TSX Stocks for the New Bull Market

Canada Goose (TSX:GOOS)(NYSE:GOOS), Lightspeed (TSX:LSPD)(NYSE:LSPD), and Telus (TSX:T)(NYSE:TU) are three must-own TSX stocks for the new bull market.

| More on:
stock market

Image source: Getty Images

The bull market is back. Here are three TSX stocks that are good buys in the new bull market.

Canada Goose Holdings

The onset of the coronavirus pandemic has pushed people to tighten budgets and stick to the necessities, pushing back non-essential businesses like restaurants and clothing manufacturers.

Canada Goose Holdings (TSX: GOOS)(NYSE:GOOS) faced an uphill battle earlier this year, as demand for its products, which mainly include parkas and winter clothing, plummeted amid the COVID-19 outbreak. However, the retailer has adapted to changing times.

Canada Goose stock is flat year to date but has soared by about 60% in the past six months and 50% in three months. It’s one of the TSX stocks that has rebounded the most, with a 125% gain from its March low.

The Toronto-based company is currently outperforming its peers in the consumer goods sector.

As winter approaches and people are looking for an extra layer of protection for the outdoors in these times of a pandemic, the clothing company may see a sales boost.

Lightspeed POS

Lightspeed POS (TSX:LSPD)(NYSE:LSPD) is one of the few TSX stocks in the tech sector. The company is poised for strong growth in the coming years.

Lightspeed provides a global cloud-based omnichannel commerce platform to enable small and medium businesses across industries to help them better engage with customers, accept payments, manage operations, and daily work with agility.

The company has a market capitalization higher than $4 billion. Lightspeed stock is up more than 30% since the start of 2020. Shares have gained more than 300% since March bottom. Lightspeed has the potential to become the next Shopify.

In September 2020, Lightspeed closed an initial public offering (IPO) in the United States and raised US$397.7 million. Those funds will be used by the company to strengthen its financial position and finance its strategic growth plans.

Lightspeed also works with Google on many large-scale initiatives such as the advanced Google My Business profile listing solutions. Its customers will get a professional setup of their Google My Business listing and will be able to manage their listings directly from the Lightspeed user interface.

Lightspeed Payments, in partnership with Stripe, launched for U.S. retailers in August 2020 to help them access automated reporting and enable a personalized and efficient source of funding for retailers. It also provides advances of up to $50,000 per point of sale and allows flexible customer repayments by leveraging Stripe’s ability to conserve capital.

Telus

There is good value in owning a telecom stock like Telus (TSX:T)(NYSE:TU), which, along with its core business, has a number of strong assets to grow the business.

Telus is continuing its nationwide rollout of 5G networks across the country, with the company announcing last week expanded coverage in British Columbia beyond the hometown of Vancouver to Stony Plain and parts of Parkland County.

Telus began in June with bringing 5G online for its customers in major Canadian cities like Toronto, Montreal, and Edmonton, with the company now touting its recent designation as the fastest network not only in Canada but globally in terms of download speed, thanks to a new industry.

The COVID-19 pandemic has taken its toll on telecommunications, including Telus. Its last quarterly report showed a slight increase in revenue year over year but a significant drop in profits.

At the same time, the company was able to retain customers and even expand its base during the months of the pandemic.

Analysts are predicting double-digit revenue growth for the company in 2021.

With a yield close to 5%, a 16-year dividend-growth streak, and a five-year growth rate of 8.2%, the dividend paid by Telus is among the best among the TSX stocks that pay a dividend. Telus is down about 4% for the year but is up more than 20% from its March low.

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 Stephanie Bedard-Chateauneuf has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Canada Goose Holdings and Shopify. The Motley Fool owns shares of Lightspeed POS Inc.

More on Dividend Stocks