Many investors simply avoid the market in times of volatility. Yet if you’re a long-term investor with a diversified portfolio, a volatile market shouldn’t scare you. Instead, consider three top TSX stocks like these that offer strong growth in the years and even decades to come.
WPT Industrial REIT (TSX:WIR.UN) shares climbed 73% in the last year with the growth in e-commerce. Yet after a major boom in e-commerce, share growth has slowed to a trickle with only about 6% growth in the last few months.
However, this stock could be a strong long-term hold, even though it’s a young company. WPT Industrial owns 109 properties across the United States as of writing. These light industrial properties simply store and ship out products for companies, including e-commerce giants.
Management reported strong revenue growth even before the pandemic, and that climbed even higher during it. Most recently it reported 45% growth year over year, and that looks to continue in the future and beyond. Yet it still offers an attractive 1.1 price-to-book (P/B) ratio and 7.7 price-to-earnings (P/E) ratio.
Even with the pandemic eventually coming to an end, e-commerce will continue to drive major growth in the next decade. So, investors can look forward to continued revenue increases and thus returns as well as a 4.97% dividend yield.
Wheaton Precious Metals
Investors are also a bit confused on what’s happening with gold. When the pandemic started and then a market crash, gold surged. But investors quickly learned that growth stocks were available in the tech sector and abandoned gold. But don’t count out gold quite yet. It might just be time for another option.
Wheaton Precious Metals (TSX:WPM)(NYSE:WPM) is a solid option for those seeking access to gold and other minerals, but without the risk as a miner. The company is a streaming operation, providing start up costs and getting wholesale prices in return for any gold found.
The company delivered strong returns in the last year, most recently up 27% year over year. Yet shares are only up 33% in the last year, falling drastically since last August with the tech boom. But the company doesn’t seem worried, completing a recent acquisition and increasing the dividend by a whopping 30%!
So, if gold rebounds soon, which many analysts believe it will, the company should see a substantial increase in share price. The stock already looks undervalued given the company’s performance, making it a solid strategy to see potentially enormous gains with relatively little risk.
I recently wrote about Air Canada (TSX:AC) stock being a case of would you rather. On the one hand, would you rather risk the bear view that this stock could potentially implode in the near future? Or would you rather risk the bull view and see your share potentially double in the next year?
True, the bull side sounds more appealing (it always does), but be careful. The stock is up 21% year to date, but analysts still fall on either side of the coin. What the company has to do is just wait it out, and that’s easier said than done. Each day Air Canada remains in business is millions lost. Though if we see vaccinations reach completion in 2021, passenger travel could quadruple this year alone!
There are two items falling in the company’s favour. One is ending the Air Transat agreement, putting cash in the company’s pocket. Next is that we’re still waiting on a government bailout, which will help dramatically. Yet no matter what, I’d say this stock is overvalued. So, you may want to consider drip-feeding into this stock as you become more confident of its recovery.
But again, if you’re a long-term investor you shouldn’t have to worry. It may take a while, but Air Canada should rebound. When it does, you’ll be happy with whatever shares you bought way back when.
Bottom line: each of these companies offers great valuations and potentially enormous gains if you buy now.
Before you consider Air Canada, you may want to hear this.
Motley Fool Canadian Chief Investment Advisor, Iain Butler, and his Stock Advisor Canada team just revealed what they believe are the 10 best stocks for investors to buy right now... and Air Canada wasn't one of them.
The online investing service they've run since 2013, Motley Fool Stock Advisor Canada, has beaten the stock market by over 3X. And right now, they think there are 10 stocks that are better buys.
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 Amy Legate-Wolfe owns shares of AIR CANADA.