This year has been a roller-coaster ride for investors, with the S&P/TSX Composite Index falling over 35% in March and recovering strongly to recoup most of its losses. The encouraging announcements on vaccine development supported the rally last month. Meanwhile, the rising COVID-19 cases and a slowdown in the economic recovery are a cause of concerns. Amid this uncertain outlook, here are three top TSX stocks to buy right now for superior gains.
Suncor Energy
Amid the hope of life returning to pre-pandemic ways, West Texas Intermediate (or WTI) crude oil rose above $45 per barrel. The increase in oil prices brought some relief to the energy sector, including Suncor Energy (TSX: SU)(NYSE: SU). The company’s stock rose 38.2% last month. However, it is still trading over 51% lower for this year.
Yesterday, Suncor Energy provided its management’s guidance on the production levels and capital expenditure for 2021. The management expects its overall average production to come in the range of 740,000 to 780,000 barrels per day, representing a 10% growth from the mid-point of last year’s guidance. Further, the company has taken several costing initiatives in the last few years. The management hopes these initiatives to reduce its operating and capital expenses significantly in 2021.
The management expects its downstream utilization rate to improve by 6% to 93%. With the oil demand expected to rise next year, I am bullish on Suncor Energy.
BlackBerry
Technology companies have witnessed a strong run this year amid the increased demands for their products and services due to digitization. However, BlackBerry (TSX: BB)(NYSE: BB) was under pressure due to its exposure to the automotive industry, which had witnessed a significant disruption amid the pandemic-infused shutdown. However, last month, the company’s stock rose close to 28% amid the vaccine hope.
In May, the company had launched its Spark Suite platform, which offers cybersecurity and endpoint management options to enterprises. The platform has helped the company acquire many blue-chip clients. It had also launched its Guard platform in the Managed Detect and Respond Services (MDR) segment in July, which could reach $2 billion by 2024 as per Frost & Sullivan’s projections.
Further, the company’s BTS (BlackBerry Technology Solutions) segment, which offers a broad portfolio of functional safety-certified and secure software for vehicles, showed improvement in the August ending quarter amid the resumption of production. Meanwhile, the management expects its BTS business to return to pre-pandemic levels early next year. Despite its healthy growth prospects, the company is trading at over 8% lower for this year, providing an excellent buying opportunity.
Nuvei
My third pick would an electronic payment-processing company, Nuvei (TSX: NVEI), which has returned over 75% since its IPO in September. It offers payment technology and intelligence services to around 50,000 customers operating across 200 markets with 150 currencies. The company has significant exposure to the iGaming and sports betting industries.
After getting the approval for sports betting in Colorado and Indiana, it recently received the authorization to operate in West Virginia. Currently, 17 U.S. states have legalized online sports betting, which several other states are working on the legalization of sports betting. So, the company has significant scope for expansion.
Further, Nuvei has developed proprietary platforms to support high-growth mobile and e-commerce markets, which could grow at around 13% annually for the next four years. So, given its high growth potential, the company could deliver multi-fold returns over the long run.
