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.