The stock market continued to set new record highs in April. While big tech stocks may look overvalued after the recent record-setting market rally, some top TSX stocks from other industries still look cheap — despite their continuously improving fundamentals. Here are three such Canadian stocks that you may want to include in your portfolio today to get outstanding returns.
AutoCanada stock rally is accelerating
AutoCanada (TSX:ACQ) shares rose by nearly 55% in April — marking its fourth consecutive positive month. Its stock rose by nearly 30% in the first quarter, as its improving fundamentals continued to impress investors.
In mid-April, AutoCanada announced solid preliminary Q1 2021 operating results that boosted investors’ confidence and drove its stock higher. The company expects its revenue to see about a 36% YoY (year-over-year) rise in the first quarter. Previously in Q4, the Edmonton-based auto parts company’s earnings rose by nearly 200%, while its revenue saw 8.3% YoY gains. Analysts expect its 2021 revenue to rise by 23% to $4.1 billion.
Interestingly, AutoCanada stock has risen in 11 out of the last 12 months. I expect its stock rally to continue in May and beyond, as its upcoming earnings event (scheduled for May 5) could keep investors’ optimism alive.
Aya Gold & Silver stock
Aya Gold & Silver (TSX:AYA) stock is currently trading at $7.55 per share, as it has yielded outstanding 96% positive returns in 2021 so far. Last month, the stock rose by 53% after ending March with minor 3.4% gains. This Mont-Royal-based precious metal mining firm reported its record Q4 results in the final week of March. Its operating cash flow surged to $3.4 million during the quarter, and its silver sales jumped by 164% YoY.
Last week, Aya Gold revealed that its silver production in the first quarter rose to about 389,132 ounces — significantly higher from just 67,005 ounces in the same quarter last year. Now, analysts expect the company’s revenue to rise by 143% in 2021, while its adjusted EBITDA is expected to rise by 212%.
Its consistently improving silver production and improving overall fundamentals are likely to keep its stock soaring in the coming months.
Uni-Select (TSX:UNS) is among key distributors of automotive refinish and industrial coatings distributors in North America. The company is readying to announce its Q1 2021 results on May 13. Its stock rose by about 50% in April after ending the first quarter with 12% positive returns.
In 2020, Uni-Select faced COVID-related operational challenges that affected its financials. Nonetheless, the company still managed to beat analysts’ earnings estimate by 67% in the fourth quarter. With fast-recovering automotive sales, Uni-Select’s sales and profitability are likely to improve this year. Rising demand could be one of the reasons why analysts expect its total revenue to rise by 9% YoY, while its adjusted gross profit to increase by 38% to US$597 million in 2021.
It might not always be very easy to make handsome money from stocks. Getting good returns on your investment highly depends on your market entry timing and the stocks you choose to invest in. That’s why you should take advantage of the improving macroeconomic and business environment right now. Investing in the right stocks amid the ongoing market rally could help you get big returns.
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 Jitendra Parashar has no position in any of the stocks mentioned.