The COVID-19 pandemic created a lot of confusion and chaos worldwide. Investors witnessed a record-setting market crash that was closely followed by a miraculous V-shaped recovery. As we move further into 2021, many investors will realize that the pandemic created several excellent opportunities on the TSX.
While most equity securities trading on the TSX have recovered to near pre-pandemic valuations, there are many others that are worth considering. I will discuss two stocks trading on the TSX that you might want to buy right now, or you’ll regret being late to the party later.
Lightspeed POS (TSX:LSPD)(NYSE:LSPD) has surged significantly in recent months. The company suffered substantial losses with the initial onset of the pandemic. With most of its subscribers forced to shut down operations amid the lockdowns, Lightspeed’s valuation also declined with the broader markets.
However, the company quickly pivoted and adapted to the current situation. It added more services that could better cater to its clients in the changing global circumstances, allowing the company to boost its revenues again. At writing, Lightspeed’s valuation is up 674% from its March 2020 bottom.
Its growth might make it seem like Lightspeed is no longer a great value bet. However, it continues to grow its customer base, and the company has plenty of room to grow. It could be an excellent addition to your portfolio in the long run.
Brookfield Renewable Partners
Renewable energy is picking up steam, and Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) is an ideal stock to lead the growing industry, as it booms in the near future. Brookfield is already a global leader in the renewable energy industry. It has an international portfolio of diversified renewable energy assets. Its assets have a massive 19,400 MW capacity, and it is likely to keep growing its portfolio.
Brookfield aims to bring renewable energy into the mainstream. The company has been seeking to produce 12-15% annual returns, including a 5-9% increase in dividends. Over the last decade, the company has done far better than its estimates. Since 2011, the company has gained 24% on an annual basis.
At writing, Brookfield is up 151% from its March 2020 bottom. It still has plenty more to offer in terms of growth potential. Additionally, Brookfield also provides its investors with a decent 2.66% dividend yield that can grow investor capital aside from capital gains.
Stock market crashes can devastate investor capital. However, those who prepare well and make the right investment moves can use market crashes to find value investment opportunities to become far wealthier in the long run.
There are chances of another stock market crash coming soon. It is unclear whether this one will also come with a V-shaped recovery, like last year. Assets like Brookfield Renewables and Lightspeed might continue to remain strong, despite the possible challenges in the market.
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Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of Lightspeed POS Inc.