The Roaring ’20s are upon us, and I think there’s a realistic opportunity to build considerable wealth without having to risk your shirt with meme stocks or EV stocks.
While there could be one more wave of lockdowns to curb the third wave in its tracks, I think we could be in for a summer to remember. And the autumn? It could be that much better, with more jabs of vaccines that’ll be put in arms. Herd immunity, amped-up testing, and so-called vaccine passports could be the Canadian economy’s ticket to normality, or at least something very close to it.
In this piece, we’ll have a look at two ultra-popular Canadian stocks to profit big from the coming reopening in late 2021 and early 2022. Each name is beaten down but is in a spot to come soaring back, as we march closer to the end of this horrific pandemic. Without further ado, here they are:
Canada Goose Holdings: Back in fashion!
Canada Goose (TSX:GOOS)(NYSE:GOOS) is a luxury parka maker that will be one of the biggest beneficiaries of the post-pandemic discretionary spending boom or the so-called Roaring ’20s. The outerwear maker tends to hibernate in the summer months before booming in preparation for the chilly seasons. But this year, I think GOOS stock could have one of the biggest summer months in years, as consumers become more comfortable putting down substantial sums on discretionary goods to treat themselves after spending the last year stuck indoors.
Higher savings rates and an increased willingness to go outside will spark massive demand for luxury goods, not just in Canada but worldwide. Canada Goose made significant strides in the Chinese market before the pandemic struck.
Once we move on from the pandemic, I suspect the Goose will be right back to where it was, with its growing brick-and-mortar and e-commerce presence. The incredible Canadian company gets top marks for its omnichannel presence. Right now, the firm’s digital presence is doing the heavy lifting, and that’s given a lift to GOOS stock in recent months. Just wait for malls to reopen, and I suspect the Goose will be ready to take flight once again, perhaps towards its 2018 all-time highs of $92 and change, implying north of 70% upside from Friday’s closing price of $53.20.
CAE: Soaring ahead of the Roaring ’20s
As the economy reopens and people take to the skies again, out-of-practice pilots are going to need to get up to speed before they take the wheel. That’s where CAE (TSX:CAE)(NYSE:CAE) comes into play. The flight simulator firm took a massive hit to the chin last year, but the stock has come soaring back ever since Pfizer pulled the curtain on its vaccine breakthrough back in November 2020. Although the opportunity to snag a “steal” is gone, I still think the name is worth loading up on ahead of what could be a massive year of recovery for the civil aviation space.
At the time of writing, CAE stock trades at a mere 3.4 times sales and 4.1 times book — a pretty low price to pay given the profound tailwinds that lie just ahead. Moreover, for those keen on betting on a rebound in air travel, CAE looks to be a far safer play, with its rock-solid balance sheet and less dependence on the vaccine timeline. CAE is a great buy here, especially for cautious bulls looking to punch their ticket to the Roaring ’20s.
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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 Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends Canada Goose Holdings.