Forget Bitcoin and Buy These Top TSX Stocks Instead

Beware the Bitcoin frenzy and target top TSX stocks like goeasy Ltd. (TSX:GSY) and Shopify Inc. (TSX:SHOP)(NYSE:SHOP) instead.

| More on:
consider the options

Image source: Getty Images

The cryptocurrency bull market has continued to roar in the first two months of 2021. Bitcoin, the largest crypto by market cap, has soared above the US$50,000 mark for the first time in its history this week. It received a strong boost after a US$1.5 billion endorsement from Tesla founder Elon Musk. The crypto craze is interesting and entertaining, no doubt, but investors need to be extremely careful. Instead of betting on this frenzy, Canadians should look to top TSX stocks instead. Today, I want to look at two of my favourites to stash in the middle of February. Let’s dive in.

Why this TSX stock has soared in recent months

On Valentine’s Day, I’d suggested Canadians should seek fulfillment in the markets. One of the top TSX stocks I’d suggested was goeasy (TSX:GSY). This Mississauga-based company offer alternative financial services to a wide array of customers. It will release its final batch of results on Thursday, February 18.

Shares of goeasy have climbed 22% in 2021 as of mid-afternoon trading on February 17. This TSX stock is up 51% year over year. The company achieved double-digit growth in its loan portfolio growth in Q3 2020, and its adjusted earnings per share shot up 50%. goeasy has delivered over six consecutive years of dividend growth, making it a certified Dividend Aristocrat on the TSX.

goeasy stock has maintained its momentum in early 2021. Still, this TSX stock possesses a favourable price-to-earnings ratio of 20. This remains one of the best financial stocks on the Canadian market for the long term.

Shopify is still the better bet over Bitcoin

Shopify (TSX:SHOP)(NYSE:SHOP) has been one of the most explosive TSX stocks since its debut on the index back in 2015. Shares of Shopify have climbed over 160% year over year as of mid-afternoon trading on February 17. In January, I’d discussed why Shopify looked poised to reach the $2,000 mark before the end of the year.

This top technology company released its fourth-quarter and full-year 2020 results today. The company reported adjusted earnings per share of $1.58 — up 267% from the prior year. Meanwhile, revenue increased 94% to $977 million. These surpassed analyst expectations for the final quarter of 2020.

The e-commerce space has benefited immensely from the COVID-19 pandemic. Gross merchandise volume (GMV) rose 99% to $41.1 billion — down slightly from the triple-digit jumps in Q3 and Q2. Merchant solutions revenue increased 117% to $698 million and subscription solutions achieved growth of 53%.

Shopify said that it expected strong revenue growth in 2021, though it would not likely keep up with the banner year it posted in 2020. It aims to increase investment in sales and market and research and development, as it continues to expand internationally. Shopify boasts a strong balance sheet and is still on track for impressive earnings growth. Betting against Shopify has been unwise in recent years. This is still a top TSX stock to buy and hold in 2021.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. David Gardner owns shares of Tesla. Tom Gardner owns shares of Shopify and Tesla. The Motley Fool owns shares of and recommends Shopify, Shopify, and Tesla.

More on Investing

Target. Stand out from the crowd

2 Canadian Stocks I’m Buying Lots of This Year

I’m looking to snatch up exciting Canadian stocks like VieMed Healthcare Inc. (TSX:VMD) throughout 2023.

Read more »

grow money, wealth build
Dividend Stocks

Got $3,000? 3 TSX Growth Stocks to Buy in January 2023

Top TSX growth stocks that look appealing for 2023.

Read more »

woman data analyze
Dividend Stocks

Need Passive Income? Turn $15,000 Into $851 Annually

This passive-income stock is already climbing higher, up 16% in the last three months! Yet it's still valuable, so you…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

Retirees: 3 Reliable Canadian Dividend Stocks to Buy Now for Passive Income

Top TSX dividend stocks now appear oversold.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.

2 TSX Stocks Safer for Investing in a Recession

These consumer companies will likely beat the broader market averages amid a recession. These stocks offer stability, income, and consistent…

Read more »

Dividend Stocks

For $100 in Passive Income Each Month, Buy 1,500 Shares of This REIT

REITs such as Northwest Healthcare can enable investors create a passive-income stream as well as benefit from capital gains.

Read more »

A colourful firework display
Dividend Stocks

2 Canadian Growth Stocks (With Dividends) to Start 2023 With a Bang

Here are two of the best dividend-paying Canadian growth stocks you can invest in at the start of 2023 and…

Read more »

sale discount best price
Dividend Stocks

4 Insanely Cheap Canadian Stocks to Buy for Passive Income

The recent bear market has created some incredible bargains, especially for those looking for passive income. Here are four cheap…

Read more »