The Toronto Stock Exchange has been performing well midway into 2021. The TSX historically tends to perform better when the energy sector is doing well. The energy industry has been the top-performing part of the Canadian economy so far in 2021.
The healthcare, financial, real estate, telecom, and consumer discretionary sectors are also outperforming the broader TSX index. The broader market has outperformed five sectors, but each sector is in the green itself, spelling great news for overall market conditions.
While it might seem impossible to find bargain deals in the current market, you can find excellent opportunities if you know where to look for them. Today I will discuss two breakout stocks that could provide you with significant upside potential this year.
Suncor Energy (TSX:SU)(NYSE:SU) stock is up by almost 40% on a year-to-date basis at writing. Trading for $29.66 per share, the energy sector stock boasts a respectable 2.83% dividend yield. The new optimism in the market has led to market analysts forecasting the price to soar to the $40 mark.
The $44.68 billion market capitalization stock has an integrated structure that’s rearing to regain its lost glory through the pandemic-riddled year in 2020. The company is an innovative player in the oil industry, using advanced technology to find, pump, store, and deliver its products.
The company is also increasing its focus on renewable energy solutions to prepare for the green energy revolution. The company owns a $300 million stake in an Alberta-based wind farm and is looking to capitalize on lithium, a valuable and abundant resource in Canada.
The oil sands in Alberta are rich in the valuable metal and could offer Suncor lucrative opportunities once its operations begin.
Kinross Gold (TSX:K)(NYSE:KGC) is a Canadian gold stock that has a comparatively lower profile than Barrick Gold. The fact that it has been flying under the radar could be an excellent reason to consider investing in Kinross Gold. The potential upside for the stock is far greater if it can continue reporting profitability and better cash flows.
The $10.38 billion market capitalization company owns and operates a diverse portfolio of mines. The company’s management relies on its operational efficiencies, a strong balance sheet, and responsible mining to deliver value to its shareholders.
The company’s mines in Nevada and Fort Knox in the U.S. and its mine in Peru derive all of its gold production. The company’s exploration strategy emphasizes high-quality brownfield projects where it aims to discover new resources within existing mines.
Trading for $8.23 per share at writing, Kinross Gold boasts a 1.75% dividend yield. It could be one of the best assets to consider if you are bullish on rising gold prices and seek substantial upside potential.
Kinross Gold and Suncor Energy are two companies that are reliable operators in their respective industries. You can consider investing in the two companies for the upside potential through capital gains and rely on shareholder dividends to continue growing your account balance while you wait for share price appreciation.
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 has no position in any of the stocks mentioned.