The S&P/TSX Composite Index is on a roll as if the pandemic has reached the end game. Canada’s primary stock market index finished the first week of June 2021 at 20,029.20, a record high. High oil prices and signs of strong economic rebound fuel the impressive rally.
Exactly a year ago, the TSX was at 15,257.90 and unlikely to top 20,000 given the raging coronavirus. Today, the index is up by the double digits at 14.89%, so Canadians can seize the moment and shop for great buys. Your $10,000 investment could double or even triple this year and beyond.
The company is among the top performers in the financial services sector, outperforming the Big Bank stocks with its 51.48% year to date. Also, the trailing one-year price return is 152.93%. If you snag the stock today, the share price is $145.61. Market analysts recommend a buy rating and forecast the stock to top $200 in the next 12 months.
The $2.39 billion firm from Mississauga is a full-service provider of goods and alternative financial services. Management recently reported jaw-dropping earnings results. In Q1 2021 (quarter ended March 31, 2021), net income was a record $112 million, 409.1% higher than Q1 2020.
The company also achieved numerous milestones after 79 years of consecutive income of positive net income and 44 straight quarters of same-store sales growth. The lead business segments, easyfinancial (+39%) and easyhome (+29%) reported record operating incomes.
Meanwhile, total assets at quarter’s end increased by 5% to $1.61 billion on account of growth in the consumer loan portfolio and return on investment in Affirm. Other investments include Brim Financial and LendCare; goeasy President and CEO Jason Mullins expects consumer demand to continue improving throughout the summer months with the acceleration in vaccine distribution.
Protection from market volatility
Tamarack Valley trades at an absurdly low price. Still, the current share price of $2.73 is 232.9% higher than a year ago. Also, the energy stock is up by an impressive 115% year-to-date. Market analysts are bullish about this energy stock. If oil prices continue to climb, the price could soar to $4.50 or double.
The $1.11 billion oil & gas company produces crude oil, natural gas, and natural gas liquids (NGLs) in the Western Canadian sedimentary basin. Tamarack’s focused growth strategy targets the drilling and acquisition of repeatable and predictable long-life resource plays.
Tamarack is also the lowest-cost producer due to core area strategic infrastructure ownership. Another core strength is its robust hedging program that insulates the company from commodity price volatility. In Q1 2021 (quarter ended March 31, 2021), average production increased by 2% versus Q1 2020. Total revenue climbed 41% year over year, while net loss improved to $166,000 from $251.3 million in Q1 2020.
Expect Tamarack Valley to continue employing multiple third-party gas sales contracts with various end dates until 2022. This set-up provides diversification of its natural gas price exposure and helps mitigate individual market volatility risk at the same time.
Tamarack Valley Energy and goeasy mirrors the performance of the TSX. Whether you pick the alternative lender or lowest cost oil producer, either one could double or maybe triple any amount of investment.
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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 stocks mentioned.