Earnings Pick 2021: 3 Top TSX Stocks to Buy Before Earnings

If you’re wanting a boost for your portfolio, these three stocks are strong choices before earnings are released in the next week or so.

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Investors remain uncertain about today’s market. But that doesn’t mean you should avoid investing altogether. In fact, there are several companies that could offer a major boost this earnings quarter. Let’s look at three options that are due for an earnings jump.

Aphria

Aphria (TSX:APHA)(NASDAQ:APHA) is one of the world’s leading cannabis producers. It’s also one of the first to see a profit, leading to improved share performance after years of questioning whether the company would even make it. Today, shares are up 448% in the last year alone and 150% since the beginning of the year.

The major component on top of reaching profitability is the company’s partnership with Tilray. Together this company could well be the largest producer of cannabis in the world. As black market cannabis continues to be driven away, this joint effort could well dominate both the recreational and medicinal sectors in the United States and around the globe.

While analysts predict earnings per share of -250%, revenue is expected to be up 27% year over year for the quarter and up 30% for the full year. The stock doesn’t look too overvalued, but it’s not cheap either, creating the potential for a jump that could be a boost for long-term holders.

Earnings are expected for Aphria stock on April 12.

CP Rail

Stocks don’t get much stronger than CP Railway (TSX:CP)(NYSE:CP). The railway company belongs to a duopoly in North America — one that would be hard for any company to edge in on. This is why shares have remained so stable in the past decades, with the last year seeing a steady climb of 60%.

The heavy lifting that was done by the company back in 2012 continues to see benefits. After implementing several cost-saving measures, the company has been growing in multiple ways. Most recently, it’s offered a US$25 billion bid for a U.S. railway and saw little opposition. This deal makes it the first railway to connect from Canada all the way to Mexico. All of this growth could see shares reach the $500 mark before 2021 is over.

Analysts estimate EPS growth of -11% during the next quarter, with revenue growth of around 10%. They also expect a 12% increase in EPS for the year. So, the stock should see a relative boost from the news.

CP Rail will announce its earnings report on April 21.

TFI International

Boring is good, and that’s why TFI International (TSX:TFI)(NYSE:TFII) continues to do so well. The stock is up 235% in the last year and 47% since the beginning of 2021. Its package and courier business continued to thrive while the world shifted to even more e-commerce use.

This stock is a solid buy before earnings, as the company should give a strong yearly report. So, any dip that comes your way during the next few days would give you a strong jump. With a 1.3 times sales, and 3.9 times book value, this is a strong value buy to hold for long-term investors.

This stock gives you the greatest chance of seeing a positive earnings report. Analysts have given a consensus estimate of seeing about 4% increase in EPS come the earnings report. Yet the stock remains well under the radar for most investors. Given that its increased almost 800% in the last decade, this could be a strong buy for the next decade, as e-commerce continues to boom.

Earnings are set to be released April 19.

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 Canadian Pacific Railway Limited.

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