Investors have excellent buying opportunities on the TSX, with the index holding steady, despite the continuing health crisis. Two names stand out and have been on fire since a year ago. The gains from March 2020 are astronomical — at least 330%.
In 2021, goeasy (TSX:GSY) and Alcanna (TSX:CLIQ) are on fire. Market analysts are bullish on both stocks, because the growth potentials are fantastic. Scoop the stocks today without delay for future superior returns or include them in your watchlist.
A surprise top performer this year is goeasy. The stock’s rise during the pandemic year until the present is phenomenal. This $1.83 billion company that extend loans (easyfinancial and easyhome) and other financial services to retail consumers is undoubtedly TSX’s premier growth stock.
The current share price of $123.97 is 364% higher than it was a year ago. Had you invested $10,000 then, your money would be worth $46,448.11 today. As of March 19, 2021, the year-to-date gain is 28%. Analysts covering the financial stock see a long growth runway ahead. They forecast the price to soar further by 45% to $180 in the next 12 months.
All the cards are stacked in favour of goeasy. The company would benefit greatly when economic activities intensify and credit demand increases. The potential increase in revenue and free cash flow will likewise ensure uninterrupted dividend payouts. If you invest now, the dividend yield is a modest 2.13%.
Alcanna isn’t as popular as goeasy, but it has also delivered superior returns. The share price of this premier retailer of wines, spirits, beer, and cannabis in Canada has soared by 339% from a year ago. A $6,000 investment then would amount to $26,312.85 today. You can purchase the stock at less than $10, or $7.85 per share.
The $314.38 million company from Edmonton derives revenue from two business segments: liquor and cannabis. In the nine months ended September 30, 2020, Alcanna’s total sales growth was 20% compared to the same period in 2019. It was a turnaround year, too, following a net income versus a net loss in the previous year.
Alcanna’s four brand pillars are the growth drivers. Management plans to grow further its Wine and Beyond banner in Alberta and British Columbia. It sold its 19 convenience-format liquor stores to Otter Farm and Home Co-operative for $80.88 million. Besides investing more in Wine and Beyond, Alcanna intends to use the proceeds to reduce debt and general corporate purposes.
Likewise, something big is coming after management spins off its current cannabis business to launch a new discount-focused cannabis retailer. Alcanna leads the number of operated alcohol retail stores (197) and cannabis retail stores (34) in Canada. In North America, it’s one the largest private sector retailers of alcohol and cannabis. The stock’s performance is superb and gaining by 33% year to date. Analysts forecast the price to climb 46% to $11.50 in the next 12 months.
One thing is common between goeasy and Alcanna. Both companies are doing brisk business in their respective sectors. They will capitalize on the opportunities during the economic recovery phase to ensure consistent steady growth. Investors can expect outsized gains like in 2020 when the stock prices soared more than 300%.
Speaking of two TSX stocks that are on fire in 2021...
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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 Christopher Liew has no position in any of the stocks mentioned.