Time is of the essence, in many cases, in life. Some stocks are too cheap to ignore and can get bid up very quickly when the market turns around. Here are five stocks I think fall into this category for investors looking for the best stocks to own in 2021!
A company that has underperformed of late, to say the least, is Restaurant Brands International (TSX:QSR)(NYSE:QSR). This is a rock-solid purveyor of fast food via three key quick-service restaurant banners. Though Popeyes Louisiana Kitchen and Burger King have outperformed of late, Tim Hortons has been hit hard by the pandemic. The company’s management team hasn’t righted the ship in the way many initially expected. Accordingly, this stock remains depressed, providing what I see as a great buying opportunity right now.
I think the stage is set for more growth on the horizon with this company. New store openings at its existing banners, increased same-store-sales, and additional acquisitions could be on the horizon. I’d highly recommend investors consider this stock before it shoots higher this year!
Another retail-focused company, Alimentation Couche-Tard (TSX:ATD.B), has dipped recently as well. This stock is one that has been under pressure as a result of its failed bid to buy French grocer Carrefour. This stock has bounced back somewhat since the debacle, but shares are still feeling the pain. Investors are concerned that the company may be overpaying for its acquisitions or going out of the company’s comfort zone with its acquisition focus.
However, I think this is a rock-solid company with a management team and a track record that speaks to the contrary. This is a growth-at-a-fantastic-price option for investors looking for a bit of everything. This stock trades at only 15-times earnings, making this a dirt-cheap stock to pick up today. Additionally, the company’s small, but recently growing dividend also adds to the investment thesis with this stock.
A company providing excellent defensiveness alongside impressive long-term growth upside is Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN). This company’s business model is built on a solid foundation of regulated utility cash flows. This extremely stable long-term utilities business allows the company to pay a bond-like dividend yield of 3.6%.
Additionally, about a third of Algonquin’s revenue is derived from its renewable power business. The growth this business has provided in recent years has been substantial. I see cash flow growth from Algonquin’s renewables business driving mid- to high single-digit dividend increases for the long term. This makes Algonquin one of the best value picks for income-oriented investors out there today.
Like these top TSX picks? Here are 10 more to consider today!
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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 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends ALIMENTATION COUCHE-TARD INC. The Motley Fool recommends RESTAURANT BRANDS INTERNATIONAL INC.