No matter what happens on the TSX today, there are always opportunities. Whether there is a crash or a soaring economy, investors can find stocks that are still of value. Even now, with the TSX today trading at all-time highs, there are still value stocks to find. With the economy set to recover even more in 2021, that makes these three TSX stocks the perfect value play for market-beating gains this year and beyond.
A rare opportunity on the TSX today: Shopify
After no slow downs for years since coming on the market, Shopify (TSX:SHOP)(NYSE:SHOP) offers investors a unique chance to buy up in bulk. Canada’s largest e-commerce company has seen around 5,000% in share growth since going public in 2015. But after hitting $1,900 per share, the stock has remained stagnant around $1,400 since then.
But this stock is a victim of the tech pullback and should continue to be a popular stock on the TSX today for a reason. The pandemic caused e-commerce stocks to soar, but the shift was going to happen anyway. Companies such as Shopify stock have reinvested the capital to grow much faster than originally planned. By 2024, e-commerce sales should rise to 19% in the U.S. alone!
The company’s sales continue to grow, rising from US$673.3 million in 2017 to US$2.9 billion in 2020. That’s a compound annual growth rate (CAGR) of 63%! Yet while shares are still certainly not exactly in the “value stock” territory, I would argue there is still value given the pullback of around 26%. That increase alone could turn a $10,000 investment into $13,571 overnight!
Hop on the bandwagon with HIVE
If you’re not too risk averse, then you may be looking into cryptocurrency right now. Whether Warren Buffett likes to admit it or not, cryptocurrency is a trend that may not go away. But not everyone can afford the sky-high prices on the TSX today. This is why a stock like HIVE Blockchain Technologies (TSXV:HIVE) is so valuable.
The company mines and sells digital cryptocurrency, providing a safe storage solution for Bitcoin and others. Yet the stock is incredibly affordable at only about $4 per share as of writing. And it’s not like you won’t be able to take advantage of the growth in cryptocurrency at these prices.
Shares in HIVE stock have grown 1,445% in the last year alone and 13,033% in the last five years. That’s a CAGR of 164%! With the market in recovery, the company has finally seen some positive news on the revenue front, with revenue coming in year over year at a 27.75% increase.
As more investors get behind cryptocurrency, HIVE stock is likely to continue its ride to the top. Yet again, investors have an opportunity during this market pullback. The stock is down 41% since 52-week highs, providing you a solid opportunity for market-beating gains in 2021. A $10,000 investment could quickly turn into $18,125!
For the stable investor: TD Bank
Now, if you’re not so risk averse, these stocks may not be for you. But that doesn’t mean there aren’t safer opportunities out there. In fact, the Big Six banks still offer plenty of room to grow now and in the future. One of my favourites on the TSX today has to be Toronto-Dominion Bank (TSX:TD)(NYSE:TD).
You’d think a company around 100 years old would slow down a bit, but TD Bank has been growing more than ever. It became one of the top 10 banks in the U.S. but has since closed some locations to focus on its online banking presence. Its loan repayments remain strong, and the company retains a solid balance sheet, even after the market crash.
Net income rose at 32.74% year over year during the last earnings report, and the company continues to find new ways of growing to bring in revenue. Shares are up 51% in the last year alone but 193% in the last decade for a CAGR of 11.33%. Plus, investors get a hold of a 3.86% dividend yield.