Many investors have lost money on stocks this year. It’s just the way it goes sometimes. However, the magnitude with which investors have lost money since the start of the year has been particularly troubling for many. However, this isn’t the case with all stocks. In fact, there have been a large number of stocks that have made for profitable holdings since the start of the year. In this article, I will discuss three stocks that would have made you money this year if you’d bought them early on.
One of the top growth stocks around
One of the best growth stocks in Canada is also one of the least well known. An up-and-coming company by the name of goeasy (TSX: GSY) has quietly been gaining a lot of traction over the past year. Since the start of 2021, goeasy stock has gained nearly 55% as of this writing! This massively outperforms the nearly 10% gain made by the S&P/TSX over the same period. Over the past full year, goeasy has been even more impressive, gaining a staggering 197%.
This stock still has a massive growth runway ahead. Currently, it has a market cap of $2.43 billion, making it a small-cap company. As a company with solid growth, its valuation metrics are also very attractive. Today it trades at a P/E ratio of 16.87, which is much lower than the likes of Shopify, which trades at a P/E of 86. In addition, goeasy is a Canadian Dividend Aristocrat with a forward dividend yield of nearly 2% and a payout ratio of 20.55%. From all angles, this looks like an incredible stock to own.
This is Canada’s top bank
While others may have differing opinions on which bank stands as Canada’s top bank, I firmly believe Bank of Nova Scotia (TSX: BNS)(NYSE: BNS) should be given that honour. The company belongs to the Big Five within Canada, but it is also the most well-diversified Canadian bank internationally. Bank of Nova Scotia is betting big on its business in the Pacific Alliance. This is an area that economists are pegging as a strong area of growth over the coming years.
Since the start of the year, Bank of Nova Scotia has managed to gain more than 16%. For a stock within the banking industry, that’s a very impressive performance. It also shows that Bank of Nova Scotia has the potential to generate stronger gains than the broader market. In addition to its strong capital appreciation, the stock offers a very attractive forward dividend yield of 4.57%. Similar to goeasy, this stock is a Canadian Dividend Aristocrat and also trades at a very attractive P/E (14.8).
Investing in Canada’s Warren Buffett
The final stock I’ll be covering in this article is Brookfield Asset Management (TSX:BAM.A)(NYSE: BAM). This company is an alternative asset management company focused on real assets. Those are assets which have intrinsic value. Examples include utilities, real estate, and infrastructure, all of which feature predominantly in Brookfield Asset Management’s portfolio. This stock sits in between goeasy and Bank of Nova Scotia in terms of size, with a current market cap of $82.74 billion.
Brookfield Asset Management is also notable in that it is run by a CEO who has been frequently compared to Warren Buffett. Bruce Flatt has been compared to the Oracle of Omaha, because of his value investing style, a long CEO tenure, and large ownership stake in his company. If there’s one CEO you’d want leading a stock in your portfolio, it’d be Flatt. Since the start of the year, Brookfield Asset Management has gained nearly 9% outperforming many of the top growth stocks.
