Canadian stocks started April 2021 on a solid note, as the TSX Composite Index continues to make new record highs each day. Here are five fundamentally strong stocks rallying in April that could help you gain big from the ongoing market rally.
Advantage Oil & Gas stock
Advantage Oil & Gas (TSX:AAV)(NYSE:AAV) is a Calgary-based energy firm with a market cap of $559 million. Its stock has risen 25.3% in April so far after falling 9% in March. With this, the stock has already risen by 39% in 2020 one so far.
In Q4 2020, Advantage Oil & Gas’s earnings turned positive again after posted adjusted net losses in a previous couple of quarters. The company reported adjusted net earnings of $0.13 per share in Q4 — crushing analysts’ consensus estimate of $0.01 per share. Analysts now expect its revenue to rise by 58% to $370 million in 2021. On the profitability side, the company’s fourth-quarter EBIT margin expanded by 15 percentage points on a YoY (year-over-year) basis to 19.9%.
On April 5, Advantage Oil & Gas revealed that it achieved record average production in the first quarter. I expect a recent surge in its production to boost its upcoming quarterly results and drive its stock higher.
Uni Select stock
Uni Select (TSX:UNS) is an auto & truck parts wholesale company headquartered in Boucherville. Its stock has risen 23.5% in April so far after falling by 14% in the previous month.
Due to a COVID-19-related automobiles demand slump, Uni Select reported a 15% drop in its total revenue. However, analysts expect a 9% jump in its sales to US$1.6 billion in the ongoing year as the demand recovers. Similarly, its gross profit is expected to rise by 38% to US$597 million this year. Uni Select announced some key changes in its stock management on April 1 — after which many Bay Street analysts upgraded their price target on its stock. I expect its stock to outperform the broader market in 2021, as auto parts’ demand continues to recover.
Mogo (TSX:MOGO)(NASDAQ:MOGO) is a Vancouver-based fintech company with a market cap of $685 million. Its stock has rallied by 15.8% in the last couple of sessions, continuing its Q1 2021 rally. Notably, Mogo stock rose yielded extraordinary 120% returns in the first quarter.
Despite COVID-19 headwinds, the financial technology company managed to report a lower-than-expected loss in 2020. Also, it reported a 16.5% YoY rise in its adjusted gross income to $11.5 million in Q4 2020. As a result, Mogo stock has risen by 762% in the last year. Analysts see a 16% YoY increase in its sales this year. Its stock rally may continue, as the recovery in fintech services demand continues.
Greenbrook TMS stock
Greenbrook TMS (TSX:GTMS)(NASDAQ:GBNH) is a small Canadian healthcare sector firm with a market cap of $234 million. The company primarily focuses on the mental health by offering transcranial magnetic stimulation (TMS) therapy. Its stock has risen by 13% in April after ending March with 15% losses.
Its recent gains came after the company reported narrower-than-expected losses in 2020 on March 20 — despite several operational difficulties during the pandemic phase. Greenbrook’s total revenue rose by 21% YoY last year. Its revenue is expected to jump by 37% US$59 million in 2021. Currently, Greenbrook operates 126 TMS centres spanning 15 states in the United States. TMS therapy’s rising popularity as a safe and effective mental treatment option could help it financially grow in the coming years and trigger a long-term rally in its stock.
Headwater Exploration (TSX:HWX) is a Canadian energy company. Its stock has risen by more than 8% in April so far after falling slightly by 3% in March. The demand for energy products tanked sharply in the first half of 2020 as the COVID-19 badly affected economic activities across the world. However, this demand has already seen a massive recovery in the last three quarters. It explains why Headwater Exploration stock has gone up in nine out of the last 12 months.
In the quarter ended December 2020, Headwater Exploration reported a massive over 900% YoY jump in its earnings per share to $0.16. Analysts expect its earnings to rise by 63% in 2021 as the demand for energy products further rises this year. These factors could help its stock outperform the broader market by a wide margin this year.
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 Jitendra Parashar has no position in any of the stocks mentioned.