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.

Portrait of woman having fun in the street.

Image source: Getty Images

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

Business success with growing, rising charts and businessman in background
Tech Stocks

Growth Stocks: A Once-in-a-Lifetime Opportunity to Get Rich

Here's why investing in quality growth stocks such as Docebo and Datadog may allow you to generate sizeable returns.

Read more »

analyze data
Tech Stocks

Buy the Dip: 3 TSX Stocks and ETFs Worth Your Attention

As the year nears the end, it is time to buy some stocks and ETFs at the dip and book…

Read more »

Shopping card with boxes labelled REITs, ETFs, Bonds, Stocks
Tech Stocks

Is Shopify Stock Worth a Buy in December?

Shopify stock has almost doubled in 2023. While results continue to impress, it's trading at lofty valuations fueled by sky-high…

Read more »

A shopper makes purchases from an online store.
Tech Stocks

3 Top E-Commerce Stocks to Buy on the TSX Today

These e-commerce stocks have already shown some signs of improvement, but 2024 could be huge for today's investor.

Read more »

exchange traded funds
Tech Stocks

The ABCs of Diversifying Away From SPY Stock for Canadians Investing in the U.S.

If SPY stock is your only country-level diversification, you are missing out on some opportunities. Here are the ABCs of…

Read more »

A worker uses a double monitor computer screen in an office.
Tech Stocks

2 Top Fintech Stocks to Buy on the TSX Today

Consider buying these two top fintech stocks if you want to inject solid long-term growth potential into your self-directed investment…

Read more »

Businessman holding AI cloud
Tech Stocks

Revolutionizing Industries: Why Every Canadian Should Consider AI Stocks

Canadian tech stocks like Shopify Inc (TSX:SHOP) use AI to improve customer experiences.

Read more »

edit Women wearing red sweater shopping online and using credit card at home office
Tech Stocks

Up 58% Since November: Is Nuvei Stock a Buy Today?

Given its high-growth prospects and cheaper valuation, the rally in Nuvei could continue.

Read more »