After much volatility to start the year, there is still potential to find some of the best investments of 2021.
When we buy stocks, it should always be for the long term. Right now there are several industries offering exceptional long-term growth potential.
The key is buying these stocks as cheaply as possible, which is why right now is so opportune after all the recent volatility. It’s also about buying stocks that offer you the most growth potential over at least the next few years, not just the next few months.
So with that in mind, here are three Canadian stocks that could be some of the best investments of 2021.
A top e-commerce tech stock
One of the top stocks over the last year has been Shopify due to the massive growth potential of e-commerce. And while Shopify is still a buy in my view, a stock that holds the potential to offer way more growth is WeCommerce Holdings (TSXV:WE).
WeCommerce owns several businesses and brands in the Shopify ecosystem. It’s a unique and high-growth way to play the massive popularity of Shopify as it continues to grow.
WeCommerce owns some of the top themes and application companies on the Shopify platform. So the stock could see massive potential over the next few years as e-commerce continues to expand.
Shopify has been making a tonne of deals lately to grow its business, which all look promising for WeCommerce. Plus, WeCommerce stock has come down more than 50% from its 52-week high, offering an excellent buying opportunity today.
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The best value investment of 2021?
One company that’s a top buy today for the value it offers is Corus Entertainment (TSX:CJR.B). Corus is a top Canadian media company that’s been undervalued ever since the pandemic started.
It’s had a strong start to the year for both its stock and its operations. Lately, though, with uncertainty picking up, the stock has begun to lag again, offering investors major value.
Corus will report earnings later this month, and there’s a strong possibility that it will once again impress the market with its exceptional free cash flow and ability to pay down its debt.
The stock currently trades at a forward price-to-earnings ratio below 7.0 times. That’s extremely cheap, showing why it might just be one of the best investments of 2021.
Plus, in addition to how cheap the stock trades, it also pays a dividend that currently yields over 4%.
Unlike the tech stocks on this list, Corus may not offer massive growth potential. However, because it continues to be so cheap, it should be considered one of the best investment ideas of 2021.
A top Canadian tech stock
Finally, one of the most exciting stocks in Canada is Nextech AR Solutions (CSE:NTAR). The stock saw a bit of a rally last year as a tonne of tech stocks rallied in recovery.
It has since lost over 75% of its value, making now the perfect time to buy this stock for cheap. Currently, with a market cap below $200 million, this micro-cap has huge potential to grow. Augmented Reality (AR) is one of the most exciting areas in the technology field.
The market for AR is expected to grow from US$10 billion a year in 2019 to US$70 billion by 2024. And after that, as the technology continues to improve, the industry could see even faster growth.
This is why Nextech AR could be one of the best investment ideas of 2021. AR technology is already getting popular in several industries, including sports, healthcare, retail, and of course, video games.
There are also several industries where it will continue to grow in popularity, such as education for remote learning, the auto sector, navigation apps, and emergency responders.
The stock and technology may not necessarily rally again this year, but at this price, Nextech AR is extremely cheap. And given the incredible growth potential it offers, it’s one of the best investments you can make in 2021.
Speaking of top investments for 2021, you have to check out this incredible space stock!
Our team of diligent analysts at Motley Fool Stock Advisor Canada has identified one little-known public company founded right here in Canada that’s at the cutting-edge of the space industry and recently completed a transformational acquisition, all while making a handsome profit in the process!
The best part is that in a market where many stocks are selling at all-time-highs, this stock is trading at what looks like a VERY reasonable valuation… for 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 Daniel Da Costa owns shares of CORUS ENTERTAINMENT INC., CL.B, NV. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify and recommends the following options: short January 2023 $1160 calls on Shopify and long January 2023 $1140 calls on Shopify.