Top 5 Skyrocketing TSX Stocks to Buy in April 2021

Investors can buy these five small companies’ skyrocketing stocks to gain big from the ongoing market rally in April 2021.

Jitendra Parashar

Author Bio Jitendra Parashar is a financial journalist who has been writing for The Motley Fool Canada since June 2020. With more than 13 years of experience in financial journalism, equity research, and market analysis, he helps investors understand market developments and identify long-term investment opportunities. Before joining The Motley Fool Canada, Jitendra spent several years at Market Realist covering U.S. equities, major economic developments, and developments in the automotive and technology industries. He also worked in commodity and currency research at brokerage firms, gaining insight into how economic trends, central bank decisions, and geopolitical events influence financial markets. Jitendra writes for beginner investors, dividend seekers, and Canadians looking to build wealth over the long term. He also contributes to the daily TSX Today series, explaining key Canadian market developments and highlighting news investors should watch. Based in India, Jitendra follows Canadian and U.S. markets closely. Outside of work, he enjoys travelling in the Himalayas, street and nature photography, and exploring programming and artificial intelligence. Education MBA in Finance and International Business Bachelor's degree in Journalism Areas of Expertise Canadian and U.S. financial markets, long-term equity investing, dividend investing, macroeconomic and geopolitical trends, automotive stocks, emerging technologies, and artificial intelligence. Social Media Profiles LinkedIn Muck Rack Favorite Investment Quote “Simplicity is the master key to financial success.” — John C. Bogle

Published April 7, 2021 7:30 pm EDT

The ongoing broader market rally in 2021 has the potential to multiply investors’ money fast. Long-term investors could invest their money in these five small companies’ rallying stocks to gain big from the ongoing stocks rally.

Uni-Select stock: The rally continues

Uni-Select (TSX: UNS) is a Canadian auto parts company with its primary focus on the wholesale of automotive refinish, industrial coatings, and related products. It has a market cap of $509 million. Uni-Select stock has risen 28.4% this month after ending Q1 with 11.8% gains.

In 2020, the company made 44% of its total revenue from the United States market. Its remaining 33% and 23% sales came from Canada and the United Kingdom, respectively. After facing COVID-19-related headwinds last year, its products’ demand is expected to rise this year. In 2021, the company also plans to preserve the efficiency gains realized in 2020, which should help it maintain low costs. With this, Uni-Select expects its adjusted EBITDA to improve on a YoY (year-over-year) basis this year.

Its stock has risen by 175% in the last year. I expect it to continue outperforming the broader market by a wide margin this year as well.

Roxgold stock: On the recovery path

Roxgold (TSX:ROXG) is a Toronto-based gold miner with a market cap of $647 million. Its stock rose by 12% in March — ending its four-month-long losing streak. The stock has risen 11.0% in April so far.

After facing pandemic-driven operational difficulties in the first three quarters of 2020, Roxgold’s overall production rose in the fourth quarter. As a result, its Q4 earnings doubled on a YoY basis to US$0.04 per share. Analysts expect its earnings to rise by 66 % in 2021.

Roxgold stock has risen 112% in the last year. The ongoing production recovery could help it improve its fundamentals and 2021 — driving its stock higher.

AutoCanada stock: Post-pandemic recovery

AutoCanada (TSX: ACQ) is an Edmonton-based auto vehicle, parts, and service retailer. The company currently has a 2% market share in its home market, new vehicle sales, and used vehicle sales — with about 3,357 dealerships across the country. This market share may look very small at first. But AutoCanada’s management is focused on expansion through acquisitions to gain a higher share of this more than $246 billion market.

In Q4 2020, AutoCanada’s earnings rose by 200% YoY to $0.87 per share. Interestingly, its stock has gone up in 11 out of the last 12 months. This growth stock could continue to inch up in 2021 as the recovery in the North American automotive market continues.

DIRTT stock: Demand could rise

DIRTT Environmental Solutions (TSX: DRT)(NASDAQ:DRTT) is a Calgary-based construction supplies firm that offers modular construction solutions. It has a market cap of $358 million. Its stock has risen 244% in the last year and trading with 9% gains in April.

In Q4, DIRTT’s sales fell by 21% YoY due to a sharp drop in major construction activities due to the pandemic. Nonetheless, it was slightly better than analysts’ consensus estimates. Analysts expect its sales growth trend to turn positive in 2021.

DIRTT’s interior construction services may pick up pace in 2021 as the global pandemic gradually subsides. This recovery could continue to give more fuel to its ongoing stock rally.

Copper Mountain Mining stock: Massive gains

Copper Mountain Mining (TSX: CMMC) is a copper ore mining company headquartered in Vancouver. Its stock has risen by 4% in April after surging 72% in the first quarter. As a result, Copper Mountain Mining stock has yielded an astonishing 787% positive returns in the last year.

In Q4 2020, the company’s earnings rose by 200% YoY to $0.03 per share. Despite operational difficulties due to the pandemic in 2020, Copper Mountain Mining exceeded its production guidance while its costs remain within the guided range. Analysts expect its earnings per share to rise by about 350% to $0.5 and its adjusted gross income to rise by 87% this year.

The improving mining activities and fast recovery in demand for metals could help Copper Mountain Mining stock yield solid returns in 2021.