Investors are become more optimistic in the recovering potential coming out of this terrible pandemic. Accordingly, portfolios are rapidly being adjusted right now. Indeed, investors continue to pour money into reopening plays amid increasingly bullish sentiment.
Some analysts believe this bull rush might not be over. Indeed, there could be plenty of time to pick up some upside on reopening plays.
For those who believe it’s still not too late to invest and take advantage of this uptrend in recovery plays, here are three great top picks.
Restaurant Brands
The restaurant business got hit very hard during the pandemic. Indeed, Restaurant Brands (TSX:QSR)(NYSE:QSR) was not immune to this selloff. That said, this stock actually held up quite well during the crisis, trading within a relatively narrow range. Much of that has to do with the stellar brands this company holds. Indeed, being the owner of iconic banners such as Tim Hortons, Burger King, and Popeyes Louisiana Kitchen, this truly global conglomerate offers investors a massive advantage over single-banner stocks.
Restaurant Brands has climbed over 10% so far this year (at the time of writing). Indeed, I think more of a bounce could be on the horizon as the economy reopens. This is a stock which has provided investors with nine consecutive dividend increases. In other words, it’s a dividend growth investor’s dream stock.
Indeed, there are many reasons to hold this company right now for the long-term.
Air Canada
Any discussion about post-pandemic reopening plays is incomplete without Air Canada (TSX:AC).
With travel restrictions likely to be relaxed soon as vaccine rollouts accelerate, Canada’s largest airline is bouncing back nicely. This stock is up more than 20% (at the time of writing), year to date. Investors should remember that despite this increase, Air Canada still trades approximately 50% below the company’s all-time high. Indeed, much more upside for this stock could be on the horizon.
Compared to its peers, Air Canada maintains a relatively healthy balance sheet. Investors know the importance of this airline to the country’s economy. Accordingly, it appears there will always be a bailout available to Air Canada to put a floor beneath this stock.
Long-term investors have done well with Air Canada stock over the past decade. Accordingly, those who are patient may be well-rewarded with this name over the coming decade.
Shopify
As investors continue to readjust their portfolios to rising yields, Shopify Inc. (TSX:SHOP)(NYSE:SHOP) has been on the receiving end of a plunge in the rest of the tech sector.
Despite tech stocks falling dramatically of late, Shopify remains one of the most promising tech companies in the country. The company’s management team has been aggressively expanding, adding new ventures and features to improve the company’s value proposition for shareholders.
This e-commerce software platform remains an exciting post-pandemic pick. It has greatly benefitted from the pandemic-induced shift from brick-and-mortar stores to online platforms, which has led to a sharp increase in its subscription revenue. The robust growth is evident from the company bouncing back into profits, reversing a 2019 net loss of $124.8 million to net income of $319.5 million this year.
Indeed, there’s lots of upside potential in Shopify for investors willing to buy the dips today.
