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3 Must-Own Stocks for the Next Bull Market

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Is the stock market in the early stages of a bull market? The TSX posted a record high of 18,954.80 on March 15, 2021. If strong profits emerge in the earnings season, the recovery phase could even be a growth phase. If you’re positioning for the next bull market, three stocks stand out. Absolute Software (TSX:ABT), Real Matters (TSX:REAL), and Goodfood Market (TSX:FOOD) are screaming buys on my list.

Industry leader

Absolute Software, a $946.48 million provider of a cloud-based endpoint visibility and control platform, rewarded investors with a 78.8% total return. So far this year, the year-to-date gain is 27.28%. The share price is $19.01, while the dividend offer is 1.62%.

Technology investments are rising, particularly in cybersecurity. Absolute Software’s platform is the top-of-mind choice of enterprises and organizations for the management and security of computing devices, applications, and data. The customer base is solid and growing. Annual revenues are recurring, and the pace could accelerate in the months ahead.

The Vancouver-based firm has come a long way to become a leader in Endpoint Resilience solutions. The addressable market is vast, so growth opportunities are on the horizon. Absolute’s Web Usage is now available for Microsoft Windows and Google Chrome OS devices. Today, Absolute’s defence platform is embedded in more than half-a-billion devices. It’s also the only undeletable platform in the industry.

Real charmer

Markham, Ontario-based Real Matters is a no-brainer buy in the low-interest-rate environment. The $1.3 billion company specializes in residential mortgage appraisals, whether the transaction is for purchase, refinancing, and home equity purposes.

Real Matters is a network service provider for the mortgage lending and insurance industries, with the bulk of operations largely in the United States. The tech stock made it to the 2020 TSX30 List due to its 431.6% return over the last three years.

The company’s proprietary technology is the best of its class. Real Matters’s client base includes Top 100 U.S. mortgage lenders. You know the business is rock solid, given the high 95% customer retention rate. The year isn’t over, yet management has its eye on fiscal 2025 already. Invest now before the $15.31 price doubles in 2021.

Good vibes

Market analysts are bullish on Goodfood Market, despite the 22.4% slide from a month ago. The share price is down to $9.41 — a good entry point for growth investors. Because of the increasing adoption of online grocery shopping and rising demand for meal kits, analysts forecast the stock to soar 91.3% to $18 in the next 12 months.

Only a select few reported a more than 70% increase in revenues during the COVID year. Goodfood posted a 77% growth for fiscal 2020 versus the preceding year. The company should be on the road to profitability soon due to the rapid growth in the subscriber base.

The business of this $683.5 million should flourish in the pandemic era. In Q1 2021, active subscribers topped 306,000 already. At the rate Goodfood is revolutionizing the grocery space, I won’t be surprised if it becomes TSX’s top performer in 2021.

No obstacles to growth

Absolute Software, Real Matters, and Goodfood Market will thrive even more in the recovery period. I don’t see obstacles to growth in each one. Don’t miss the buying opportunities today if you seek superior returns down the road.

Speaking of three must-own stocks before the next bull market...

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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.

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Microsoft. The Motley Fool recommends Goodfood Market and Real Matters Inc.

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