Investing these days is difficult. There are a bunch of stocks out there doing well, but for how long? A market crash is very likely in the near future. This comes from a market in vaccine euphoria, ignoring the fact that the vaccine will take potentially years to be widely available.
Meanwhile, the world’s debt is even worse than where it was before the pandemic. Estimates peg global debt reaching $277 trillion by the end of the year. There is still so much work to do, and it could take years to return to some form of normalcy.
But that doesn’t mean all is lost. When it comes to your finances, you need to think long term. Look back at the last year and see what stocks could see you through to 2021 and beyond. Get defensive, and think about investing in these three top stocks for next year.
The pandemic isn’t over, which means more and more cities will likely enter lockdown. It’s already happening, and will likely continue through and past the holidays as more cities ender the Red Zone. This means companies like Goodfood Market Corp (TSX:FOOD) could see renewed interest.
The company had a huge influx of demand at the beginning of the pandemic. While that’s died down a bit, overall the company has grown a lot and has more room to expand. Fulfillment centres were built, people were hired, and more customers signed up.
The company’s recent earnings report proved that, reaching net positive income for the first time ever. Meanwhile revenue increased 74% year over year, and shares are up 209% as of writing. Analysts continue to bump share estimates, so this could be a great stock to pick up for the next year or more.
The tech industry also saw a huge influx of clients as the work-from-home economy boomed. Companies like Real Matters Inc. (TSX:REAL) saw a boost as a service that could be used any where. In fact, Real Matters became one of the companies investors realized will do well no matter what happens.
The company provides network management and technology to the mortgage lending and insurance agencies across Canada and the U.S. With interest rates so low, the company saw a huge boost in people wanting to renew their mortgage and insurance at low rates.
The company recently topped 2020 off with 11.7% market share of U.S. appraisals, with revenue increasing 41% year over year. Shares have jumped 48% in the last year, and will likely continue leaping as long as low interest rates are down.
And then there’s gold. Gold prices have soared as the U.S. dollar drops. But even before that happened, Kirkland Lake Gold Ltd. (TSX:KL)(NYSE:KL) got investors excited as the company continued to acquire mine after mine. The company now has a diverse portfolio of mines around the world bringing in revenue.
Adjusted earnings were up 49% year over year during the latest report, with record free cash flow of $275.7 million. As gold continues to go rise in price, so too should Kirkland. The company thinks so too, continuing to buy back shares as the price keep rising.
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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 Amy Legate-Wolfe owns shares of Goodfood Market. The Motley Fool recommends Goodfood Market and Real Matters Inc.