Half-Time Report: 3 Top-Gainer TSX Stocks of 2021

Canadian markets are up almost 17% so far this year, outperforming the S&P 500. Here are some of the top-gainer TSX stocks so far this year.

| More on:
new year 2021

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Canadian markets are up almost 17% so far this year, outperforming the S&P 500. Experts anticipated a market crash amid the thorny path of the pandemic. However, whether inflation fears or fresh variants of coronavirus, markets defied all challenges and kept climbing higher. Here are some of the top-gainer TSX stocks so far this year.

Enerplus

The energy sector substantially overshadowed broader markets since last year. Enerplus (TSX:ERF) is a Canadian oil and gas production company that gained 120% this year. Notably, small- and mid-sized energy companies beat their larger counterparts this year.

Along with decent financial growth, Enerplus’s accretive acquisitions fueled its rally this year. Its recently completed acquisition of Williston Basin assets is expected to increase operational efficiency. In addition, higher production and higher energy commodity prices notably boosted energy companies’ margins in the last few quarters.

Higher crude oil prices could continue to drive earnings recovery for energy producers. Despite the rally, Enerplus stock is trading at a discounted valuation. Interestingly, undervalued stocks like Enerplus will likely keep on soaring higher if energy markets continue to improve.

Capstone Mining

Canada’s top copper miner Capstone Mining (TSX:CS) stands second on this list with its 115% gain so far this year. The stock soared from close to $0.40 levels last March to $6.6 levels, representing a 1,600% gain in 12 months. However, it has corrected more than 20% since May and is currently trading at $5.15.

The copper price rally acts as a harbinger of global economic expansion. The base metal surge uplifted copper miners in tandem. It’s pleasing for copper investors to see such high growth in a little time span after years of underperformance. Interestingly, the outlook for metals remains rosy, which will likely drive copper stocks higher.

Capstone Mining’s revenues in Q1 2021 jumped by almost 200% year over year. It reported a net profit of $101 million for the quarter against a loss in the year-ago quarter.

Despite the bullish outlook, copper stocks remain an aggressive bet for investors. The volatility and uneven global recovery from the pandemic could dent conservative investors.

BlackBerry

The third one on the list is BlackBerry (TSX:BB)(NYSE:BB). The stock rose 80% in the first half of 2021 and stands among the top gainers. The cybersecurity stock BlackBerry has been one of the target stocks of Reddit investors. It zoomed to $36 levels amid the meme stock frenzy in February, only to fall close to $10 in the subsequent weeks.

BlackBerry offers strong growth prospects with its significant presence in internet-connected devices and data security solutions. However, its financial growth still discourages discerned investors. Its revenue growth has been on a constant decline for the last five years. It was able to report profits only for three of the last 12 quarters.

BlackBerry’s QNX technology and the advent of smart mobility could be a game changer in the long term. Once it starts converting operational feat into financial growth, BlackBerry could again top the charts. But when is anybody’s guess.

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 recommends BlackBerry. Fool contributor Vineet Kulkarni has no position in any of the stocks mentioned.

More on Dividend Stocks

edit Back view of hugging couple standing with real estate agent in front of house for sale
Dividend Stocks

Why Real Estate Stocks Are a No-Brainer Addition to Your Portfolio

Real estate stocks, especially REITs, offer some distinct advantages over other types of stocks, making them must-have additions to most…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

3 Top TSX Dividend Stocks to Buy for Monthly Passive Income

Top TSX stocks with monthly dividends now trade at cheap prices for investors seeking passive income.

Read more »

Canadian Dollars
Dividend Stocks

Create Free Passive Income and Turn it Into Thousands With 1 TSX Stock

If you can't afford to invest, you can certainly create passive income another way and use that to invest in…

Read more »

Payday ringed on a calendar
Dividend Stocks

Canadian Dividend Investors: 2 ETFs That Pay Monthly Income With High Yields

Dividend ETFs often pay out monthly distributions compared to dividend stocks.

Read more »

think thought consider
Dividend Stocks

2 Stocks I Own and Will Buy More of if They Fall

Stocks tend to go up in the long run. Therefore, buying a basket of diversified stocks on dips should lead…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

2 Oversold TSX Dividend Stocks to Buy for Passive Income

Blue-chip dividend stocks such as Royal Bank of Canada and Manulife Financial pay investors a tasty forward yield.

Read more »

TFSA and coins
Dividend Stocks

TFSA Passive Income: 3 Solid Stocks to Earn $355 Every Month

Looking to earn steady passive income? Here are three solid TSX stocks that can help you earn a worry-free passive…

Read more »

Technology
Dividend Stocks

RRSP Investors: 2 Stocks to Buy in August for Dividends and Capital Gains

RRSP investors can still find top TSX dividend stocks trading at cheap prices today for a buy-and-hold portfolio.

Read more »