As the vaccination efforts continue, the Canadian economy is seeing steady growth and a revival in consumer demand. The overall positivity is fueling hopes of solid growth in the stock market this year and beyond.
Despite a generally frothy market environment, value investors can find excellent assets that they can add to their portfolios for stellar long-term returns. I have selected three top TSX stocks trading below the $100 mark that will likely benefit from favourable industry trends in the coming years.
Enbridge (TSX:ENB)(NYSE:ENB) is benefitting from the rising energy demand in the current market environment. Enbridge stock has increased by almost 14% on a year-to-date basis, and it is likely for the energy sector company to sustain a positive momentum this year. The energy infrastructure company could also continue boosting shareholder returns through regular quarterly dividend payouts.
ENB’s diverse revenue streams, new assets, rate escalations, customer growth, and favourable industry trends suggest that it could be an excellent addition. The stock is trading for $46.55 per share at writing and sports a juicy 7.18% dividend yield.
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Docebo (TSX:DCBO)(NASDAQ:DCBO) suffered, as the anticipated normalization in its growth rate and expensive valuation caught up to the e-learning platform provider. The stock is down by just over 20% on a year-to-date basis at writing, and it looks attractive at its current share prices.
The company continues to grow its recurring revenues at a rapid pace. Its customer base and average contract values continue to rise. A high retention rate, new customer acquisitions, and a large addressable market could continue to deliver robust operating and financial performance for the company. The stock is trading for $63.81 per share at writing, and it could be an ideal buy at its current price.
Absolute Software (TSX:ABST)(NASDAQ:ABST) could be an excellent stock to consider if you are an investor looking for a high-growth tech stock at a bargain. The company has consistently had a stellar performance over the years. The stock is up by 12% on a year-to-date basis at writing, and it boasts a 1.88% dividend yield. At its current valuation, Absolute Software is significantly cheaper than its peers, indicating substantial upside potential.
The demand for its endpoint security software is most likely going to increase, as cybersecurity threats become more problematic in the future. Growing demand for the company’s services could accelerate its revenue growth rate and drive its stock price higher in the coming years.
Absolute Software boasts a solid balance sheet, robust momentum across different business divisions, low direct competition, and a growing presence worldwide. It could be an ideal pick for your portfolio as it’s trading for just under $17 per share.
It may seem impossible to find bargain deals on the stock market after 10 consecutive weeks of gains. However, Enbridge, Docebo, and Absolute Software could be worthwhile assets to consider for bargain-seeking investors right 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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool owns shares of Docebo Inc.