The year 2020 has, without a doubt, been a crazy year. In addition to the COVID-19 pandemic, several events this year have caused numerous corrections and rallies, giving investors numerous opportunities to make money. While these rallies can create significant opportunities, even for those who are speculating, you will always be much better off buying these TSX stocks for the long term.
In years like 2020, where there is a tonne of volatility, long-term investors have the chance to make some incredible investments at valuations that don’t come around very often.
However, not only have we gotten the chance to buy several TSX stocks for ultra-cheap throughout the year, but now with a solid rally, if you have a diversified portfolio, you’re likely seeing impressive gains.
In a year like this, it’s natural to have many stocks with a strong performance. However, because there are so many companies posting impressive growth, it’s easy for investors to miss a top company.
One company that’s quietly up 180% this year is Xebec Adsorption Inc (TSXV:XBC).
The clean energy trend
One of the main investing themes that I have been advising investors to join in on over the last couple of years has been the clean energy trend.
These businesses have improved their technology, allowing them to control their costs better and become a lot more profitable.
And with many governments mandating cleaner business practices and several companies voluntarily making changes to be more environmentally conscious, these TSX stocks have a long runway for growth.
So while I have been buying classic renewable energy stocks like Northland Power, I have also diversified a bit and bought a clean technology company like Xebec.
A revolutionary TSX stock
Xebec’s business may seem a little complicated when you first research it, but while its technology is incredibly brilliant and complex, its business operations are a lot more straightforward.
The TSX stock makes equipment that filters and purifies naturally occurring gasses, transforming these naturally occurring gasses into hydrogen or renewable natural gas.
Having the ability to produce renewable natural gas is extremely important for cleaning up the environment. Renewable natural gas is completely interchangeable with regular natural gas. So any amount of natural gas we can produce in a cleaner way we can add to natural gas pipelines and uses to heat our homes.
This equipment is increasingly becoming more popular, especially among utility companies. These days, businesses are increasingly being judged on their environmental, social, and governance (ESG) scores. The ESG is a measure of how sustainable and how much of a societal impact the company has.
So with companies focused on improving their ESG scores and Xebec selling a product that’s relatively cheap and helps them do just that, the clean tech TSX stock will naturally see a major increase in sales over the coming years.
The opportunity
So far this year, many investors have recognized the potential of Xebec, and its stock has put up an impressive performance. Going forward, though, there is a lot more potential for growth. That’s why I think the stock is just getting started.
Plus, as Xebec sells more of its equipment to businesses, it intends to grow its services side of the business too. This will help the business grow rapidly because as the company sells more equipment, its services segment will naturally grow alongside it.
The company is extremely attractive and looks like it could be a top performer for decades. That’s why it’s a TSX stock that I am already wishing I bought more of.
