3 TSX Stocks That Could Double in 2021

Canadians should look to add top TSX stocks like Nuvei Corporation (TSX:NVEI) and others as we look ahead to June.

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The S&P/TSX Composite Index was up 159 points in early afternoon trading on May 26. North American indexes have had a rocky month of May, but stocks are benefiting from some renewed confidence in its final days. Today, I want to look at three TSX stocks with the potential to double before the end of 2021. Let’s jump in.

This cannabis stock is building momentum

The Green Organic Dutchman (TSX:TGOD) is a Mississauga-based company that produces and sells organic cannabis in Canada. Its shares have climbed 58% in 2021 at the time of this writing. The TSX stock is up 27% over the past month.

The company released its first quarter 2021 results on May 12. Revenue increased 194% year over year to $8.98 million. Meanwhile, gross profit jumped 83% to $3.13 million. Like its peers, Green Organic Dutchman suffered from a sales decline during the COVID-19 pandemic. While there was an initial hoarding of cannabis in the spring of 2020, this tapered off in the months that followed. The reopening of cannabis brick-and-mortar retail across Canada, especially in the summer, should provide a long-awaited boost.

Green Organic Dutchman is on track for strong revenue growth in the quarters ahead. This TSX stock has promising potential going forward.

Why this TSX stock is worth targeting in late May

Last June, I’d discussed why Pollard Banknote (TSX:PBL) was one of my favourite small-cap TSX stocks to snatch up. This Winnipeg-based company manufactures and sells a range of gaming products and services for the lottery and charitable gaming industry. Shares of Pollard are up 65% in 2021. The TSX stock has soared 292% year over year.

In Q1 2021, Pollard reported record first-quarter sales of $112 million – up 10% from the prior year. Meanwhile, the company delivered adjusted net income of $7.5 million compared to a net loss in the first quarter of 2020. Sales from Pollard’s combined iLottery operations rose to $18.3 million compared to $6.3 million in the previous year. Gambling is another industry that is steadily migrating to digital spaces, which Pollard has moved well to capitalize on.

This TSX stock last paid out a quarterly dividend of $0.04 per share. That represents a modest 0.2% yield.

One more TSX stock to snatch up today

Nuvei (TSX:NVEI) is the last TSX stock I want to zero-in on today. I’ve been stoked about this relative newcomer to the Canadian stock market since its debut back in September 2020. This electronic payment processing company is on an impressive growth trajectory. Its shares have climbed 25% in 2021 and are up over 100% since its Initial Public Offering (IPO).

It released its first quarter 2021 results on May 10. Nuvei continued to impress as total volume grew 132% to $20.6 billion and revenue rose 80% to nearly $150 million. Meanwhile, adjusted EBITDA surged 97% to $65.5 million. Nuvei built on its global presence and launched processing solutions in Argentina, Chile, Peru, and Ecuador.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned.

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