As we are about to move into month two of 2021, it might seem like not that much has changed. Think again.
The U.S. has inaugurated a new president. We’ve got more stimulus on the horizon. And the pandemic is raging on to a degree many didn’t expect. In this context, I’m going to discuss two top picks I think will outperform in February and for the rest of 2021 on this news.
One of the companies that benefits greatly from a Democratic Administration in the U.S. is Curaleaf (TSXV:CURA). This is a company with impressive vertically integrated operations spanning the U.S., unlike its Canadian peers. Accordingly, it’s well positioned to take advantage of legalization south of the border if and when it materializes. There’s really no other TSX-listed cannabis company with these kinds of growth drivers right now.
Yes, we’ll see other Canadian players try to enter the U.S. market in a big way this year. However, none have the existing infrastructure and business model of Curaleaf. This is a cannabis stock with the presence and the management wherewithal to take this Canada-based producer international. Indeed, the U.S. market is the gem of the cannabis world, and everyone and their uncle will try to get a piece of the action. Curaleaf is already one of the key players duking it out for market share in cannabis and other value-added products. This is a company with real top- and bottom-line potential. The same can’t be said of all its peers right now.
In the technology space, my top pick for investors looking for a pick right now has to be BlackBerry (TSX:BB)(NYSE:BB). This Canadian software player has recently signed a contract with technology mega-cap company Amazon to take on the connected vehicle market. I think investors have waited a long time to get this kind of catalyst that could propel BlackBerry to the next level. With a key partnership now in the bag, investors will be focused on performance moving forward.
Accordingly, I think BlackBerry has one of the best management teams out there to drive a long-term growth agenda. The company’s CEO John Chen has done an incredible job in transitioning the company away from hardware toward the software side of the business. In summary, I think this is a stock that long-term growth investors need to be patient with. Indeed, doing so could prove to be very lucrative for those with the ability to put money aside and forget about it.
A safer pick than my previous two, Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is poised for continued growth into February and beyond. This is a stock that has dipped in recent weeks, and I think these levels provide an attractive entry point for long-term income investors. Indeed, any time anyone can pick up a 4.3% yield of a blue-chip bank, the timing is right. Those who missed out on locking in a higher yield need not worry. TD has a great track record of long-term dividend- and capital-appreciation growth.
This is a stock that is well suited for a variety of portfolios. Whether you’re an income investor or looking for total growth, this is a stock that does well over the long term. I think TD is well positioned to provide great returns and growth over time for every investor type.
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 Chris MacDonald 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 and BlackBerry and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.