5 of the Best TSX Stocks to Buy in May 2021

I believe the recovery in demand and steady economic expansion could continue to support the uptrend in top TSX stocks.

| More on:
Portrait of woman having fun in the street.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Irrespective of the heightened volatility in the market, I see plenty of good growth investment opportunities at the current price levels. I believe the recovery in demand and steady economic expansion could support the uptrend in top TSX stocks. Here is the list of five TSX stocks that have delivered stellar returns in the past and could continue to outperform the benchmark index by a significant margin. 


I am upbeat about Scotiabank (TSX:BNS)(NYSE:BNS), as it offers a solid mix of value, growth, and income. The steady growth in the economy and its presence in the high-growth banking markets suggest that Scotiabank is well positioned to capitalize on the recovery in consumer demand. I expect its loans and deposit volumes to increase. Meanwhile, provisions and expenses are likely to go down, driving its earnings higher.

I expect Scotiabank’s valuation multiples to expand further. Currently, it’s trading cheaper than peers and offers good value. Furthermore, Scotiabank has paid dividends for a very long period and offers a solid yield of 4.6%. 


goeasy (TSX:GSY) is a must-have stock in your portfolio and has consistently delivered higher returns, thanks to its robust financial performance. The sub-prime lender’s top and bottom line have increased at a solid double-digit rate in the past, and I expect the momentum to sustain in the forthcoming years. 

The revival in consumer demand, expansion of its loan portfolio, acquisitions, and new products are likely to drive double-digit growth in its top line. Furthermore, higher loan size and omnichannel offerings are likely to accelerate its growth. Higher revenues, expense management, and robust payments volumes suggest that goeasy’s normalized earnings could continue to grow at a breakneck pace, driving stellar growth in its dividends and stock price. 


Like goeasy, Shopify (TSX:SHOP)(NYSE:SHOP) is another high-growth stock that is a must in your long-term portfolio. Its stock is growing at an astounding rate, thanks to the increased demand and strong secular tailwinds. I expect the spending on e-commerce channels to continue to rise, providing multi-year growth opportunities for Shopify. 

Shopify’s investments in growth initiatives position it well to capitalize on favourable industry trends. The expansion of its fulfillment network, increased adoption of retail POS, global expansion, and addition of high-growth sales and marketing channels augur well for future growth and are likely to drive its market share. Furthermore, its operating leverage and improving margins could give a significant boost to its stock. 

Goodfood Market

Goodfood Market (TSX:FOOD) stock is available at an attractive price point. Notably, shares of the online grocery services provider have skyrocketed in the past three years and handily outperformed the TSX 60 index. However, it erased some of its gains and decreased about 35% this year, providing an excellent opportunity for investors to accumulate its stock. 

I believe the increased adoption of online grocery services, expansion of its platform, new product offerings, and fast delivery position it well to capitalize on secular industry trends. Furthermore, growing basket size, increase in order frequency, and lower unit costs are likely to cushion its margins and drive its stock higher

Lightspeed POS 

Lightspeed POS (TSX:LSPD)(NYSE:LSPD) is expected to gain big from the continued shift in selling models and increased adoption of omnichannel payments platforms. The company is witnessing stellar demand for its digital products and services and continues to add new customers at a healthy pace. Furthermore, product expansion and up-selling opportunities are driving its revenue per user. 

Despite the stellar run-up in its stock, I am bullish and expect further upside on the back of its growing scale and expansion in high-growth markets. Furthermore, its strategic acquisitions and growing global presence are likely to accelerate its growth rate further and support the uptrend in its stock. 

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 Sneha Nahata has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. The Motley Fool owns shares of Lightspeed POS Inc. The Motley Fool recommends BANK OF NOVA SCOTIA and Goodfood Market.

More on Tech Stocks

grow money, wealth build
Tech Stocks

How to Create $100,000 by Investing $500/Month

These two TSX stocks will aid you in building wealth of $100,000 over the next 8.5 years.

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Tech Stocks

This Battered Growth Stock Could Soar Over the Next 3 Months

Docebo (TSX:DCBO)(NASDAQ:DCBO) is a top work-from-anywhere stock that may be in for a sizeable move to the upside in coming…

Read more »

financial freedom sign
Tech Stocks

3 Selloff Stocks That Could Set You Up for Life

Are you hoping to take advantage of the stock market selloff? Here are three stocks that could set you up…

Read more »

question marks written reminders tickets
Tech Stocks

Docebo (TSX:DCBO) Stock Is Still Down 63%: Should You Buy it?

The growth potential of many new tech stocks that joined the TSX during the pandemic may have been exaggerated, and…

Read more »

Plant growing through of trunk of tree stump
Tech Stocks

2 Growth Stocks Investors Should Buy Today

Are you looking for stocks to add to your portfolio? Buy these two growth stocks today!

Read more »

Male IT Specialist Holds Laptop and Discusses Work with Female Server Technician. They're Standing in Data Center, Rack Server Cabinet with Cloud Server Icon and Visualization
Tech Stocks

3 Tech Stocks I am Buying During a Correction

High-growth tech stocks such as Docebo and Shopify should remain part of your buying list right now.

Read more »

exchange-traded funds
Tech Stocks

2 Tech Sector ETFs to Buy for a Recovery

Individual tech stocks might not fit the risk appetite of many conservative investors. Though, gaining exposure to the entire sector…

Read more »

Growing plant shoots on coins
Tech Stocks

3 Growth Stocks Are Back in the Game: Up to 83% Upside to Come!

Buying a basket of diversified growth stocks can accelerate your retirement plan. Alternatively, you can use profits for a nice…

Read more »