The S&P/TSX Composite Index fell 164 points on October 19. Earlier this month, I’d warned Canadians of the potential for a second market crash in 2020. The return to stricter pandemic regulations across the developed world are cause for concern, especially when we consider the markets reaction in the spring. Today, I want to look at five TSX stocks that need to be in your portfolio when the next bull market gets underway. Let’s dive in.
Why this TSX stock needs to be in your portfolio in 2020 and beyond
WELL Health Technologies (TSX: WELL) owns and operates a portfolio of primary healthcare facilities. In September, WELL Health was one of three TSX stocks I’d suggested investors should stash in their TFSA. Its shares have soared 427% in 2020 as of close on October 19.
This company is notable for its rise during the COVID-19 pandemic. Health professionals have moved to conduct consultations remotely, which has powered the rise of telehealth. In Q2 2020, WELL Health saw telehealth visits grow sequentially by 730% to more than 124,800 visits. Moreover, it achieved record quarterly revenue of $10.5 million.
Telehealth holds huge promise in this changing environment, but this TSX stock is pricey right now. Patient investors may get an opportunity to add WELL Health at a better price.
Another exciting equity for the future
Goodfood Market (TSX: FOOD) delivers fresh meals and grocery products in Canada. The grocery retail business has managed to flourish in the face of the pandemic. However, Goodfood has been much more than a solid defensive stock. This TSX stock has increased 201% so far this year. Shares have climbed 29% month over month.
The company released its third-quarter 2020 results on July 8. Revenue surged 74% year over year to $86.6 million and gross profit rose 77% to $24.9 million. Like WELL Health, Goodfood has benefited from the COVID-19 crisis. It has accelerated the migration to e-commerce grocery options. In October, the company announced the launch of Goodfood WOW, a same-day delivery service in the Greater Montreal Area.
Goodfood is a TSX stock with huge potential going forward. The stock fell 4.26% on October 19. This is a TSX stock to grab in the event of a market dip.
Three tech TSX stocks to grab right now
Canada boasts a small technology sector relative to top indexes in the United States, but that does not mean it is devoid of attractive options. Below are three TSX stocks in the tech space worth owning ahead of the next bull run.
Absolute Software operates in the cybersecurity space for enterprise and public sector organizations. This TSX stock has increased 109% in 2020. It has delivered very strong earnings growth and is promising due to the trajectory of this industry.
Lightspeed POS provides commerce enabling Software-as-a-Service (Saas) platform for small and midsize businesses. Shares of this TSX stock have increased 27% in 2020. It may not boast the explosive growth of Shopify, but Lightspeed possesses an excellent balance sheet and promising growth prospects. Q1 2020 recurring software and payments revenue grew 57% year over year.
Quarterhill is the last stock I’d pick up ahead of the next bull run. This company focuses on acquisition and management of technology companies that provides products and services worldwide. Its shares have climbed 61% so far this year. This company also possesses a fantastic balance sheet and boasts an attractive price-to-earnings ratio of 12.
