Several factors weighed on Bitcoin’s plunge recently. Elon Musk’s U-turn and stricter crypto regulations by Chinese authorities were some of the more prominent ones. However, investors now must be wondering if Bitcoin is really an alternative to gold.
The biggest and the most popular cryptocurrency has lost more than 35% of its value since last month. It is still sitting on handsome gains of 45% for 2021. Notably, some of the top TSX stocks have comfortably outperformed Bitcoin this year. Given their relatively lower volatility, lack of regulatory concerns, and strong fundamentals, these stocks offer comparatively stable return prospects. Here are three TSX stocks that have beaten Bitcoin so far in 2021.
Children’s entertainment company Spin Master (TSX:TOY) outperformed Bitcoin this year. The stock is up more than 55% since the start of the year. Its growing product base and strong financials drove the rally this year.
Spin Master is a $4 billion company that creates excellent play experiences for children through innovative toys, digital games, and entertainment franchises. The company’s digital games witnessed significant growth in the last six months, increasing the segment’s sales by almost 400% year over year. The games Toca Boca and Sago Mini have a combined monthly active user base of more than 50 million.
Spin Master could see even higher demand post-pandemic once people are allowed to spend. Its growing digital revenue and innovative product line should drive superior financial growth in the next few quarters.
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Even if you dislike it, energy is among the top-performing sectors this year. Re-opening hopes uplifted crude oil prices this year, improving the recovery prospects of energy companies. Canada’s Tourmaline Oil (TSX:TOU) stock has soared more than 85% this year.
Tourmaline Oil saw significant earnings growth in the last few quarters, driven by higher production and superior demand. The management is upbeat about this year’s production as well. Higher production and better cost management could lead to margin expansion this year.
Tourmaline Oil stock is currently trading close to its four-year highs. It is up almost 260% since the pandemic-led crash last year. Importantly, the stock does not look expensive from the valuation standpoint, even after such a rally. If the broader energy markets remain supportive, Tourmaline’s strong production and financial growth could unlock sizeable value for shareholders.
The third stock that outperformed Bitcoin this year is Mogo (TSX:MOGO)(NASAQ:MOGO). It is an emerging FinTech company valued at $530 million. It offers customers an application-based digital spending account, personal loans, and credit card-monitoring platform.
Mogo is rapidly increasing its subscriber base, which should bode well for its revenue growth. The company is early in the growth phase, and the stock could see above-average volatility. Its recent plunge of almost 40% in the last two months speaks for itself. Still, the stock is sitting on a handsome gain of 85% for the year.
Investors should note that the performance in the past few months is still a short span to pick or analyze a stock. However, these three TSX stocks offer decent return prospects in my view, because of their financial growth potential and lower volatility. And, most importantly, their returns are not susceptible to celebrity tweets.
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 Vineet Kulkarni has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Spin Master.