The loaded question of regular investors today is if it’s a good time to buy stocks amid the uncertainties. If you were to look at the Toronto Stock Exchange’s performance following its worst single-day drop (12.3%) on March 12, 2021, the answer is yes.
Market analysts say it takes two years for the market to recover from a historic decline. However, it took only four months for Canada’s primary stock market index to rebound. The TSX closed at 16,063.40 on July 15, 2020, or 28.4% higher. Fast forward to 2021, and the TSX is up 11.71% as of May 17, 2021. The good news for investors is that there are plenty of buying opportunities, despite the index’s outperformance.
Technology
Enghouse Systems (TSX: ENGH) trades at only $52.61 per share — a 12.2% discount. Besides the modest 1.23% dividend, there’s a potential capital gain. Analysts covering the tech stock forecast the price to climb 52% to $80 in the next 12 months.
The $2.91 billion company from Markham, Ontario, develops and sells enterprise-oriented applications software for the global market. Its two main business segments, Interactive Management Group and Asset Management Group cater to distinct vertical markets.
Enghouse Interactive and Enghouse Vidyo under IMG transform contact centres into growth engines for businesses and enhances visual communications, respectively. For AMG, communications & media, utilities, and defence organizations use Enghouse Networks’s technology solutions. Enghouse’s Transportation & Public Safety provides software solutions for transit, supply chain, and public safety companies.
Communications services
Corus Entertainment (TSX: CJR.B) is among the top-performing TSX stocks thus far in 2021. Despite its 40.7% year-to-date gain, the current share price of $5.96 is still absurdly low. Market analysts see a potential upside of 67.7% to $10. Would-be investors can also partake of the 4.02% dividend.
The business of this $1.24 billion company operates 33 specialty TV services, 39 radio stations, and 15 conventional television stations across Canada is booming. Corus’s so.da, an award-winning social and digital agency, will launch five new originals series starting this month. It’s producing serialized content in-house on a wide range of topics and trends, from baking to cosplay to sex education.
In April 2021, Corus Studios clinched a ground-breaking deal that involves the sale of over 200 episodes from its library to Hulu. The U.S. streamer will acquire Corus Studios content across home renovation, real estate, and food. Americans can watch Hulu’s new pickups later this year.
Utilities
At $15 per share, Superior Plus (TSX: SPB) deserves a spot in your dividend portfolio. You have a resilient utility stock that pays a handsome 4.8% dividend. Don’t expect much from the price appreciation, although the dividend payments should be sustainable.
The $2.64 billion pure-play energy distribution company from Toronto, Ontario, is a distributor of energy in Canada, Chile, and the United States. Management reported glowing financial and operational results in Q1 2021 (quarter ended March 31, 2021).
Luc Desjardins, Superior’s president and CEO, said, “We delivered strong financial and operating results in the first quarter with our strategic growth and operational initiatives on track with our plan.” Total revenue and net income growth versus Q1 2020 were 22.99% and 9.31%, respectively.
Great deals
The TSX’s rapid recovery in 2020 and a continued rally in 2021 reflect investors’ confidence in the market. Fortunately, you can still find great deals to help you achieve your financial goals.
