North American markets have spilled back into volatility, as the COVID-19 pandemic looks set to sow economic misery across the developed world in the fall and winter. France, Germany, and the United Kingdom have gone ahead with nationwide lockdowns to contain the pandemic. Meanwhile, Canada and the United States seems committed to a regional approach. Instead of living in fear, investors should be proactive in this crisis. Today, I want to look at three game-changing TSX stocks that Canadians should feel good about holding for the long haul.
This TSX stock has gained momentum on the back of the COVID-19 pandemic
VieMed Healthcare (TSX:VMD)(NASDAQ:VMD) is a top TSX stock in the healthcare space that was already attracting attention when 2020 kicked off. The company is a provider of equipment and home therapy to service patients with various respiratory diseases. Because of this, it was sought after for its expertise and ventilator supply. COVID-19 is a highly contagious respiratory and vascular disease.
Shares of VieMed have climbed 32% in 2020 as of close on October 28. However, the stock has retreated from its 52-week highs into the late summer and fall. Still, this TSX stock is positioned to build momentum in the face of the COVID-19 pandemic. In its Q2 2020 earnings report, the company projected that it would generate approximately $6.8 million to $9.8 million of revenue related to the pandemic in the third quarter.
The company boasts an immaculate balance sheet at the time of this writing. Moreover, this TSX stock has a favourable price-to-earnings (P/E) ratio of 11. The fall could present a great opportunity to snatch up VieMed at a discounted price.
Stop worrying and learn to love lithium stocks!
Lithium exploration companies and producers were all the rage in the latter half of the 2010s. However, this excitement drew down in 2018 and 2019 as the market overheated. Still, steadily growing demand for electric vehicles means that this is a space worth sticking with.
Lithium Americas (TSX:LAC)(NYSE:LAC) is a Vancouver-based resource company that is aiming high in the lithium space. This TSX stock has climbed 196% in 2020 as of close on October 28. Shares are up 200% year over year.
Galaxy Resources, a top lithium producer based in Australia, recently said that an improved Chinese economy had stabilized lithium prices. It is difficult to map out a recovery timeline in this environment, but there has been positive movement for the sector in late 2020.
Shares of Lithium Americas last possessed a P/E ratio of 20. This puts this TSX stock in solid value territory relative to industry peers.
One more TSX stock in the healthcare space
It would be a huge understatement to say that healthcare has been a theme in 2020. With luck, nations will be able to conquer the COVID-19 pandemic with a flood of vaccines in 2021. This does not mean that investors should shy away from healthcare. TSX stocks in this space are still some of the most exciting on the market.
Savaria (TSX:SIS) remains one of my favourites. This company designs, engineers, and manufactures products for personal mobility in Canada and around the world. Shares of this TSX stock have climbed 4.4% so far this year. The stock is up 9.6% from the same period in 2019.
The company released a preview of its third-quarter 2020 results on October 21. Revenue is expected to drop 6% from the prior year to $90 million. However, adjusted EBITDA is geared to increase 8% to $17 million. Grand View Research recently projected that the global personal mobility market would register a CAGR of 6.5% from 2020 to 2027.
Better yet, this TSX stock also offers a monthly dividend of $0.04 per share. That represents a 3.3% yield.
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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. The Motley Fool owns shares of and recommends Viemed Healthcare Inc. The Motley Fool recommends Savaria.