The first half of 2021 has been much better than expected for Canadian stocks as they continue reaching new heights. After posting its record intraday high near 20,295 on June 16, the TSX Composite Index is just 0.3% below it at the time of writing. To benefit from the ongoing market rally, investors can buy these five top TSX stocks before the month ends. I expect these stocks to soar in the second half of the year.
Lightspeed POS stock
Lightspeed POS (TSX:LSPD)(NYSE:LSPD) is one of my most favorite TSX stocks to buy in 2021. The stock has rallied in five out of the last eight quarters. The shares of this omnichannel commerce-enabling software provider are currently trading with 15.6% year-to-date gains. That’s against the TSX Composite Benchmark’s 16% gains in 2021 so far.
The demand for Lightspeed’s enterprise software platform is growing fast among small and medium-sized businesses. It could help the company’s stock stage a big rally in the coming quarters.
BlackBerry (TSX:BB)(NYSE:BB) is one of a very few large tech firms that are trying to benefit from the upcoming autonomous and electric vehicle (EV) revolution. The company currently has design wins with most of the top global EV makers. It should help BB gain big from the fast-growing electric car demand in the coming years — boosting its future earnings growth potential.
Last week, BlackBerry reported its better-than-expected first-quarter of fiscal 2021 earnings and revenue. However, its stock has slipped by 13.2% in the last 10 sessions. This could be a good time for long-term investors to buy this amazing Canadian tech stock cheap.
The Canadian e-commerce platform provider Shopify (TSX:SHOP)(NYSE:SHOP) has demonstrated excellent sales and earnings growth in the last few quarters. The company’s sales more than doubled to US$989 million in the March quarter. This came as a big surprise for some critics who were predicting a slowdown in Shopify’s sales growth rate.
Despite an expected slowdown in its sales, the demand for Shopify’s e-commerce platform remains solid. It could help the company continue reporting better-than-expected financials in the coming quarters, I believe. Unlike other years, Shopify stock hasn’t seen a big rally in 2021 so far, and that could occur in the second half of the year.
Air Canada stock
After facing COVID-19 related big challenges for over a year, Air Canada (TSX:AC) could start posting a significant reduction in its cash burn rate in the coming quarters. As the global travel demand is picking up due to the reopening economy, the largest Canadain airline is likely to benefit from it and start a healthy financial recovery.
Air Canada stock is currently trading with only 14% year-to-date gains. Long-term investors may want to buy its stock right now as high expectations of a financial recovery could help its stock soar in the second half of 2021.
Enbridge (TSX:ENB)(NYSE:ENB) is one of the most reliable energy companies in the Canadian market. The company has been facing some legal challenges specific to some of its projects lately — especially in the United States. But its overall fundamental outlook remains strong.
Enbridge reported a 22% decline in its 2020 sales due to a sudden slump in the energy demand amid the pandemic. However, its sales turned positive in the first quarter this year as the demand for petroleum products is recovering sooner than earlier expected. Its sales growth rate is likely to improve further in the coming quarters, which should help its stock inched up.
Moreover, Enbridge stock has a solid dividend yield of 6.8% at the current market price of $49.48 per share.
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.
The Motley Fool owns shares of and recommends Enbridge, Lightspeed POS Inc, and Shopify. The Motley Fool recommends BlackBerry and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.