Investing is not as hard as it seems. There are great stocks to buy on the Toronto Stock Exchange. As dangerous as it may seem to invest in the stock market during uncertain economic times, this is actually the best time to buy.
You can find great deals right now in the stock market. In addition, it already seems like investing has become more bullish. Right now is therefore the time to buy before some of this year’s laggards gain more steam.
Here are two great stocks to buy on the TSX. If you don’t already own them, you should definitely start researching and thinking about picking up some shares.
A strong stock to buy
Ballard Power Systems (TSX:BLDP)(NASDAQ:BLDP) fell to $7.65 during the March market sell-off before rising to a 52-week high of $29.20. As of Friday, investors are trading the stock for $26.87 per share.
Ballard Power Systems develops fuel cell products including those for unmanned aerial vehicles (UAV). It also serves the automotive, railroad, and public transportation industries. Ballard recently announced the third quarter of 2020 earnings on November 5.
Some companies are experiencing indirect bottom-line impacts from the COVID-19 pandemic and it seems like Ballard Power Systems may fall into this category. P resident & CEO Randy MacEwen had this to say about the impact of the health crisis on the firm’s businesses.
“While Ballard’s employees and operations have not been appreciably impacted by COVID-19 to this point, as previously communicated, delays in end market deployments and customer orders are nonetheless impacting our 2020 revenue and results. In Q3, Ballard delivered revenue of $25.6 million, gross margin of 19% and ending cash reserves of $361.7 million.”
Still, while Ballard Power may be experiencing some minor setbacks here or there due to the pandemic, the company is actually doing very well. This is one of the best stocks to buy on the TSX before the year ends.
Year to date, the firm grew both revenue and its cash reserves during the period. Total fuel cell products and services revenue grew by 4%. Moreover, cash reserves grew by 136% versus the same period last year.
A top dividend yield
Shaw Communications (TSX:SJR.B)(NYSE:SJR) fell to $17.77 during the March market sell-off from a 52-week high of $27.66. At the time of writing, investors are trading the stock for $22.70 per share. The annual dividend yield of 5.22% beats Ballard Power Systems’ currently non-existent dividend.
Shaw Communications provides internet, WiFi, phone, satellite video, and data networking in North America. The firm released fourth-quarter 2020 earnings on October 30. Shaw Communications CEO Brad Shaw commented on the company’s high quality and speed of its internet services:
“As COVID-19 unfolded, it cast a dark shadow around the world; however, it also highlighted the critical nature of highly capable facilities-based connectivity services, where Shaw’s Fibre+ network performance was amongst the very best. In fact, Ookla named Shaw the fastest and most consistent internet provider in western Canada.”
As more people work from home, fast and consistent internet services are exactly what consumers need. The firm’s revenue is in-line with its results last year, and free cash flow is growing. Free cash flow grew by 261.9% from $42 million to $152 million.
If you don’t already own Shaw Communications in your retirement portfolio, now is a good time to consider buying this stock.
Check out these other great stocks to buy on the TSX!
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Fool contributor Debra Ray has no position in any of the stocks mentioned.