The S&P/TSX Composite Index has put together an impressive run since falling victim to a global pullback in the later winter and early spring. This week, I’d looked at three stocks to consider during the holidays. Today, I want to discuss how investors can take advantage of the Santa Claus rally with three top TSX stocks. Let’s dive in.
Why Kinaxis is one of my favourite TSX stocks this decade
Kinaxis (TSX:KXS) has been a stellar hold for shareholders in 2020. It stood out for its resilience during the March market crash. In October, I’d discussed why this Ottawa-based technology company was worth holding for the long haul. Shares of this TSX stock have climbed 83% in 2020 as of close on December 22.
The disruption of supply chains in this tumultuous year has increased demand for Kinaxis’ services. It offers supply chain and operations planning software for a global client base. Domestic and global supply chains are extremely complex. Kinaxis’ revolutionary product allows companies to perform these complicated tasks with great efficiency and in less time. The company is one of the most notable Canadian firms to develop artificial intelligence to bolster its software product.
In Q3 2020, Kinaxis’ total revenue rose 17% year-over-year to $55.1 million. It had a challenging quarter, but still increased its financial guidance for total revenue and adjusted EBITDA. This is a TSX stock worth stashing for the long-term.
Don’t let BlackBerry’s post-earnings dip sour you on the stock
BlackBerry (TSX:BB)(NYSE:BB) was initially a beneficiary of the Santa Claus rally. Earlier this month, news broke of a collaboration with Amazon in the automobile software space, generating considerable excitement and a spark for the TSX stock that had struggled for much of 2020. BlackBerry’s exposure to the auto sector took its toll in recent quarters.
Beyond its promising collaboration with Amazon Web Services (AWS), BlackBerry is also a big player in the cyber security space. In Q3 FY2021, the company unveiled the industry’s first Unified Endpoint Security (UES) solution for AI-powered Cybersecurity, BlackBerry Cyber Suite. Moreover, BlackBerry QNX achieved design wins with 19 of the top 25 Electric Vehicle OEMs. These possess over 60% of the total EV market.
One more exciting TSX stock to snag before Christmas
Goeasy (TSX:GSY) is the last TSX stock I want to look at during this Santa Claus rally. This Mississauga-based company offers alternative financial services products. These include loans to subprime borrowers through easyfinancial and rent-to-own goods through its easyhome branches. Shares of goeasy have increased 41% year to date.
The company achieved adjusted diluted earnings per share growth of 56% to $2.00 in the third quarter of 2020. It reported same-store revenue growth of 3.1% across easyfinancial and easyhome. Many Canadians have been put into a difficult financial position during the COVID-19 pandemic. Goeasy’s services will be in high demand in the years to come.
Better yet, shares of this TSX stock last possessed a favourable price-to-earnings ratio of 16. It offers a quarterly dividend of $0.45 per share, which represents a modest 1.8% yield.
Here are more stocks to target during the holidays . . .
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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.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. David Gardner owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon. The Motley Fool recommends BlackBerry, BlackBerry, and KINAXIS INC and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.