The past decade saw the rise of Fintech, cryptocurrencies, equities in the streaming space, and countless other sectors that emerged to dominate investor interest. Today, I want to look at three future stocks that I’m excited about for the long term. Some of these equities are counting on growth in the sectors I’d mentioned above.
Why goeasy is the future of financial services in Canada
Goeasy (TSX:GSY) is the first future stock that I’d consider today. This Mississauga-based company offers alternative financial services such as furniture and other durable goods on a rent-to-own basis. Shares of geasy have climbed 59% in 2021 as of early afternoon trading on May 7. The company is set to release its first-quarter 2021 results on May 12.
On April 30, goeasy announced the acquisition of LendCare for $320 million. The point-of-sale consumer finance and technology company is expected to accelerate goeasy’s growth in the consumer credit market. It hopes to achieve this through the expansion of its product range and point-of-sale distribution platform.
In Q4 2020, goeasy saw its loan portfolio grow 12% to $1.25 billion. For the full year, adjusted diluted earnings per share rose 46% to $7.57. This future stock still possesses a favourable price-to-earnings ratio of 17. Meanwhile, it hiked its dividend for the seventh consecutive year. It now offers a quarterly distribution of $0.66 per share. That represents a 1.7% yield.
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A future stock that is changing the grocery game
Goodfood Market (TSX:FOOD) is a Montreal-based home and meal kit company. It has captured a large portion of the meal kit market in Canada, greatly expanding its reach during the COVID-19 pandemic. I’d suggested that investors should target this future stock in the summer of 2020. Shares of Goodfood have increased 78% year over year as of early afternoon trading on May 7. However, the stock has dropped 32% in 2021.
The company released its second quarter fiscal 2021 results on April 7. Revenues rose 71% from the prior year to $100 million. Meanwhile, it managed to post a positive adjusted EBITDA with a 0.5% margin. However, it still reported a net loss per share of $0.06.
Grand View Research recently projected that the global meal kit industry could reach nearly US$20 billion by 2027. That would represent a compound annual growth rate (CAGR) of 13% over the projected period. This future stock is well positioned to post solid gains in this space.
One more future stock that is gaining steam
WildBrain (TSX:WILD) is the last future stock I’d consider snatching up today. I’d suggested that investors should look to the streaming space instead of struggling movie theatres in late March. WildBrain develops, produces, and distributes media around the world. It has shifted its focus in recent years to the streaming space, geared specifically to the children’s demographic.
Shares of WildBrain have increased 66% in 2021. The stock has soared 165% from the prior year. Investors can expect to see its third quarter fiscal 2021 results on May 12. Adjusted EBITDA has increased marginally to $46.7 million in the first half of 2021 compared to $45.2 million in FY2020. WildBrain Spark, its streaming channel, saw audience engagement rise 15% from the prior year. This future stock is well worth targeting for Canadians hungry for exposure to streaming platforms.
Speaking of future stocks . . .
Our team of diligent analysts at Motley Fool Stock Advisor Canada has identified one little-known public company founded right here in Canada that’s at the cutting-edge of the space industry and recently completed a transformational acquisition, all while making a handsome profit in the process!
The best part is that in a market where many stocks are selling at all-time-highs, this stock is trading at what looks like a VERY reasonable valuation… for now.
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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends Goodfood Market.