The Motley Fool

3 Small TSX Stocks with Over 1000% Gains in 1 Year

Image source: Getty Images

The Canadian stocks are continuing to rally in April. The TSX Composite Index has risen by 10.3% in 2021 so far. During the ongoing stock rally, investors often focus only on the shares of tech companies like Shopify Inc. (TSX:SHOP)(NYSE:SHOP). Although Shopify stock has consistently yielded a massive over 170% returns in the last couple of years, many experts find its stock to be overvalued at the moment. After registering a solid 86% revenue surge in 2020, the Canadian tech giant’s sales growth is expected to normalize this year.

However, many small TSX stocks have outperformed the shares of tech companies like Shopify. Such small companies’ stocks could help you multiply your invested money sooner than you expect. Here’s the list of three amazing stocks that you can buy in 2021. All these stocks have risen more than 1,000% in the last year.

More than 1,500% gains

AcuityAds Holdings Inc (TSX:AT) is a Toronto-based advertising and marketing company. It’s the parent company of AcuityAds. Its stock is currently trading at $13.85 per share with minor 3% year-to-date losses due to a 15% drop in April. In 2020, AcuityAds Holdings’ stock saw a remarkable run as it rose by more than 943%. The stock extended these gains in Q1 this year as it inched up by 13.4% during the quarter. Overall, its stock is still trading with more than 1548% gains in the last year despite a 15% decline in April.

In Q4, its earnings more than doubled from a year ago to $0.08 per share. It was also 54% more than analysts’ expectation of $0.05. AcuityAds’ total revenue was 2.3% higher than analysts’ consensus estimate of $34.3 million for the quarter. As a result, its adjusted net profits in the fourth quarter jumped by 109% YoY (year-over-year) to $4.2 million.

That’s one of the key reasons why its stock has yielded stunning positive returns of more than 1500% in the last year. Analysts expect its earnings per share to rise by 82% in 2021 with the help of a 25% rise in its sales. I expect its stock to continue to surge in the coming quarters with the help of its consistently improving fundamentals.

A stock yielding 1,350% gains

Apollo Healthcare Corp (TSX:AHC) is a comparatively small Canadian personal products firm with a market cap of $329 million. Nonetheless, its stock has yielded an astonishing 1352% positive returns in the last year. While its stock rose by 767% last year, it is currently trading at $4.50 per share with about 8.9% year-to-date losses.

Apollo Healthcare is one of the largest private label personal care manufacturers in North America. The company also makes several other products for its clients on a contract basis apart from its private label business. Apollo reported its fourth-quarter of 2020 results on March 15.

Its revenue more than doubled to $87 million from $42 million in the same quarter a year ago during the quarter. Similarly, the company’s adjusted EBITDA in Q4 significantly improved to $26.2 million against the negative EBITDA of $0.9 million a year ago.

If the ongoing positive trend in its fundamentals sustains, Apollo Healthcare stock may yield outstanding returns in the long term.

Hut 8 Mining Corp

Hut 8 Mining Corp (TSX:HUT) is a Canadian financial technology company mainly engaged in the cryptocurrency mining business. It currently has a market cap of $1 billion. The recent massive appreciation in Bitcoin prices has helped Hut 8 Mining stock to deliver solid 1,053% returns in the last year.

Its latest quarterly revenue was also 43% better than analysts’ consensus estimate of $9.1 million. Analysts expect its total revenue to rise by 368% to $191 million in 2021. While directly buying cryptocurrency may expose you to many risks, you could consider investing in Hut 8 Mining stock if you want to benefit from surging Bitcoin prices. Its stock is currently trading at $8.65 per share with about 148% year-to-date gains.

Before buying these stocks, get your FREE LIST OF CHEAP HIGH-GROWTH STOCKS here:

5 Canadian Growth Stocks Under $5

We are giving away a FREE copy of our "5 Small-Cap Canadian Growth Stocks Under $5" report. These are 5 Canadian stocks that we think are screaming buys today.

Get Your Free Report Today

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.

The Motley Fool owns shares of and recommends AcuityAds Holdings Inc. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.