Three TSX stocks have fallen into obscurity or fly under investors’ radars because of the global pandemic. However, all of them could be the surprise packages that could deliver superior returns in 2021.
Shining second-tier gold stock
Alamos Gold (TSX:AGI)(NYSE:AGI) is only 8% of the size of Barrick Gold, but it could potentially reward investors with higher returns than TSX’s premier gold stock. The $4.34 billion company from Toronto, Ontario, acquires, explores, and develops mines in North America, including Canada and Mexico. Besides gold, it extracts silver and other precious metals.
The Young-Davidson mine in northern Ontario is Alamos’s flagship project. Alamos’s contiguous mineral leases and claims in the area totals 5,587 hectares. In Q1 2021 (quarter ended March 31, 2021), management reported a 29% increase in operating revenues versus Q1 2020.
From a net loss of $12.3 million for the same period last year, the company posted $51.2 million in net earnings. Also, the gold production of 125,800 ounces during the quarter exceeded management’s expectations and guidance. Suppose you were to invest today; you can purchase the gold stock at $11.07 per share. The price forecast in the next 12 months is $16.49, or almost a 50% gain. Furthermore, Alamos pays a modest 1.14% dividend.
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Top infra firm in Latin America
Polaris Infrastructure (TSX:PIF) flies under the radar but is worth checking out for the potential capital gains. Market analysts predict an upside of 61% in the next 12 months. The current share price of $17.25 could climb to $27.70. The best part is that this $335.03 million company from Toronto, Ontario, pays a respectable 4.12% dividend.
Despite a challenging 2020, Polaris reported a 5% and 99% increase in revenue and net earnings attributable to owners. At year-end, Polaris’s cash position was US$63 million. While total revenue in Q1 2021 (quarter ended March 31, 2021) dipped 1.3% versus Q1 2020, management expects to deliver operationally this year and generate strong cash flow.
The company’s domain is in Latin America. It operates a geothermal project (72 MW average) in Nicaragua and three run-of-river hydroelectric facilities (total 33 MW) in Peru. Polaris looks forward to commencing the construction of Chuspa, a 10 MW run-of-river hydro project, in Panama.
Growth-oriented oil & gas company
A dynamic, growth-oriented exploration and production company from Calgary, Alberta, hardly makes it to the shopping lists of most investors. Crew Energy (TSX:CR) is an unfamiliar name in the energy sector, but it’s one of the great choices if you want your meager capital to grow 10-fold.
The share price of this $175.48 million oil and gas E&P company is only $1.71. However, market analysts see an upside potential of 156% ($3.00) in the next 12 years. If you were to invest $1,000 today, and the forecast is accurate, your money would grow to $2,564.10.
Crew operates in northeast British Columbia, primarily in the vast Montney resource. The size of its contiguous land base of over 264,000 net acres, although 225,000 acres are underdeveloped. In Q1 2021, the turnaround has begun. From a $191.9 million net loss in Q1 2020, management reported a $1.3 million net income.
The three stocks in focus may be second or third liners in their respective sectors. Nonetheless, they could potentially deliver superior returns than their counterparts that hog the headlines.
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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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Polaris Infrastructure Inc.