Market analysts expect TSX’s win streak to continue throughout the rest of 2021. Canadians have a slew of great investment choices during summer. With 19.30% and 46.59% of the total population fully vaccinated and partially vaccinated, government restrictions should gradually ease so people could have an enjoyable season.
Many companies hope their businesses will significantly improve over the next few months and eventually return to pre-coronavirus levels by the last quarter of the year. If you have the appetite to invest, the ideal summer picks are Lightspeed POS (TSX:LSPD)(NYSE:LSPD) and Corus Entertainment (TSX:CJR.B).
Ignite your savings
The $14.04 billion point-of-sale and e-commerce software company could ignite your savings this summer. Lightspeed’s one-stop commerce platform powers merchants and is already a backbone of the global economy. It’s also among Canada’s top tech stocks that could match the success of Shopify, the largest publicly listed company on the TSX.
Dax DaSilva, Lightspeed’s founder and CEO, briefly described the company’s ongoing concern following the full-year 2021 results. He said, “Our mission to arm entrepreneurs with the technology they need to run and scale their businesses has never felt more relevant.”
Lightspeed is still seeking its path to profitability, although it’s planting the seeds today. In fiscal 2021 (year ended March 31, 2021), total revenue increased by 84% to US$82.4 million versus fiscal 2020, a new record. Moreover, recurring subscription and transaction-based revenue grew by137% to US$75.3 million.
Management’s high optimism stems from the markets’ anticipated reopening. Lightspeed could scale some more due to its strong product offering. One noteworthy enhancement is the integration of Google tools (Google Local Inventory Ads, Google Smart Shopping Campaigns, and Google My Business) directly into Lightspeed’s platform.
Connecting to more audiences
Corus Entertainment is a growth and value stock combined. The $1.28 billion media and content company should do well in the summer, as it rebounds from the pandemic’s impact. Besides the absurdly low price ($6.15 per share), the stock pays a 3.9% dividend.
The family of JR Shaw, owner of Shaw Communications, has 80% voting control in Corus. It’s now a driving force in Canada’s media industry because of the diverse portfolio of strong brands. Likewise, Corus’s has earned its spot as a significant player in the international marketplace.
In the nine months ended May 31, 2021, the business turnaround is evident. From a net loss of $655.4 million in the same period last year, Corus reported a $152.6 million net income for the period. The company is well positioned to build a content powerhouse from now on.
In April 2021, Corus sold over 200 episodes to American streamer Hulu — the largest sale by far. During May and June, management announced the slate of premium specialty programming and the line-up of premium original content. Furthermore, Corus connects to more audiences today, as evidenced by more than 600,000 new paying subscribers to its STACKTV, Nick+, and other streaming platforms.
Market analysts recommend a strong buy rating for both stocks. Lightspeed could increase by 43.2% and top $150 soon. You get value for money with Corus Entertainment. The upside potential is 62.6% on top of the dividends. A $700 investment will go a long way if you add these two outperformers to your 2021 portfolio.
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.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Lightspeed POS Inc, and Shopify. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.