3 TSX Stocks Primed to Skyrocket in 2021

Canadians wishing to ride TSX’s bull rally have excellent investment choices. Investors can pick up Corus Entertainment stock, Village Farms International stock, and Thinkific Labs stock before the prices go sky high in 2021.

| More on:
Paper airplanes flying on blue sky with form of growing graph

Image source: Getty Images

The environment right now is very conducive to investing. Three stocks should be on investors’ radars as they are well positioned to skyrocket in 2021.

Improving financial strength

Corus Entertainment (TSX:CJR.B) is recovering from the impact of the COVID-19 pandemic. The $1.19 billion media and content company could give Netflix and other streaming services in Canada a run for their money. Currently, the stock’s year-to-date gain is 36.56%, but it has the potential to climb even more.

The firmly established partnerships in the U.S. are starting to pay off in 2021. Daniel Eves, senior vice president of Networks, Corus Entertainment, said, “Corus is positioned to deliver one of the most sought-after TV lineups this year with our biggest slate of specialty series ever.” He added that the biggest names in Hollywood, whether in front of or behind the camera, support Corus.

In the first half of fiscal 2021 (six months ended February 28, 2021), revenue and net income growth is 6% and 16% versus Q2 fiscal 2020. The free cash flow of $152.1 million is 29% higher than in the same period last year. Corus’s expansion onto new platforms should improve financial position and liquidity further.

Newcomer to watch

The federal legalization of marijuana in the U.S. still hangs in the air, although investors can already consider taking a position in Village Farms International (TSX:VFF)(NASDAQ:VFF). The weed stock’s trailing one-year price return is 89.05%, and analysts have set a 12-month average target of $20.10, a 55% jump from $12.95.

Village Farms is a relative newcomer in the cannabis space, although its three decades of experience as a greenhouse grower in North America is a plus factor. The $1.05 billion company has operations in B.C. and Texas. Management will leverage the vast experience to become the lowest-cost marijuana greenhouse producer in Canada.

Pure Sunfarms, a top-selling brand of dried flower products at the Ontario Cannabis Store (OCS), is now a wholly owned subsidiary of Village Farms. The company is preparing to eventually capture a significant market share in the hemp-derived CBD market in the United States. It has two joint ventures for outdoor hemp cultivation and CBD extraction.

TSX’s next tech darling

Newly listed Thinkific Labs (TSX:THNC) has the potential to be TSX’s next tech darling. The $1.37 billion online course-creation company went public on April 23, 2021. It was able to raise $184 million in gross proceeds from its successful IPO.

Before its stock market debut, Thinkific raised $25 million in growth financing to accelerate its product innovation. The current share price of $17.94% is now 38% higher than the IPO price.

Investors’ interest could rise further following the solid financial results in the most recent quarter. In Q1 2021 (quarter ended March 31, 2021), business growth is short of spectacular. While Thinkific’s net loss widened during the quarter, revenue and annual recurring revenue increased by 152% and 134% versus Q1 2020.

Likewise, the number of paying customers soared 115% to 27,500. The material acceleration of the business performance was evident over the last two years. Entrepreneurs and businesses can launch, grow, and diversify their businesses through Thinkific’s cloud-based software. The platform creates and sells online courses and other learning products.

Great reopening plays

Corus Entertainment, Village Farms, and debutant Thinkific Labs are great reopening plays. The share prices of all three could potentially soar through the roof.

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 of the stocks mentioned. The Motley Fool owns shares of and recommends Netflix, Village Farms International Inc, and Village Farms International, Inc.

More on Cannabis Stocks

edit Cannabis leaves of a plant on a dark background
Cannabis Stocks

Why This Little-Known Cannabis Stock Could Double in 2024

This cannabis stock has already doubled this year since 52-week lows and could easily rise that much once more.

Read more »

Bad apple with good apples
Cannabis Stocks

1 TSX Stock I Wouldn’t Touch With a 420-Foot Pole

Down 87% from all-time highs, Cronos Group stock is a still a high-risk investment for long-term shareholders in 2024.

Read more »

A cannabis plant grows.
Cannabis Stocks

Canopy Growth: Buy, Sell, or Hold?

Canopy Growth (TSX:WEED) stock should make a killing on U.S. expansion, but investors will need to be very patient.

Read more »

Marijuana plant and cannabis oil bottles isolated
Energy Stocks

3 Canadian Value Stocks to Buy Right Now

Undervalued Canadian stocks such as Secure Energy should be part of your shopping list in May 2024.

Read more »

edit Cannabis leaves of a plant on a dark background
Cannabis Stocks

Here’s Why it’s Not Too Late to Buy Cronos Group Stock

The optimism about U.S. federal marijuana legalization and its anticipation are potent bullish triggers for the Canadian cannabis industry.

Read more »

Cannabis grows at a commercial farm.
Cannabis Stocks

Canopy Growth Stock Is on a Tear: Is it a Good Buy Now? 

Canopy Growth (TSX:WEED) stock surged by 80% from news out of the U.S., but is enough there without the news…

Read more »

Marijuana plant and cannabis oil bottles isolated
Cannabis Stocks

Prediction: These Could Be the Best-Performing Cannabis Stocks Through 2030

Quality cannabis stocks such as Green Thumb and Cresco Labs are positioned to deliver outsized gains to shareholders in 2024…

Read more »

Pot stocks are a riskier investment
Cannabis Stocks

The Big Mistake I See Cannabis Investors Making Over and Over Again

The news of marijuana slated to be legalized next year has seen a boost for cannabis investors, but they must…

Read more »