2 Top TSX Stocks to Own This Summer

Top TSX stocks like Cineplex Inc. (TSX:CGX) and Air Canada (TSX:AC) are well-positioned as the economy reopens this summer.

| More on:
retirees and finances

Image source: Getty Images

When this year began, Canadians were anxious over the country’s vaccine rollout. It lagged top allies like the United States and the United Kingdom amid concerns that its economic reopening was in jeopardy. Fortunately, Canada managed to secure the necessary supply in the spring.

At the time of this writing, 68% of the Canadian population has received at least one dose, and 36% have been fully vaccinated. Ontario just entered step two of its reopening plan and is set to enter step three by the middle of July. Today, I want to look at two TSX stocks worth owning this summer.

How Cineplex can catch fire this summer

Last month, I’d discussed why stocks like AMC Entertainment and Cineplex (TSX:CGX) had caught fire. The United States has been aggressive with its reopening, which has allowed AMC’s vast movie theatre empire to kick into high gear in time for the summer movie season. Cineplex, on the other hand, is still waiting for the go-ahead in Ontario.

Cineplex CEO Ellis Jacob has not been shy in criticizing Ontario’s plan. However, the government has shown no signs that it will look to ease up on these restrictions before step three arrives. Still, the news is not all bad for this TSX stock. The summer movie slate holds some promise for top cinema operators. In August, cinemas will be able to host releases like The Suicide Squad, Paw Patrol: The Movie, and The Night House.

Shares of this TSX stock have already climbed 99% in 2021 as of close on July 5. It has a shot to climb even higher as Canada hopes to be fully open by the end of the summer season.

This TSX stock may be ready to take off in the second half of 2021

The only sector that may have been hit harder than movie theatres and restaurants is air travel. Heading into 2020, Air Canada (TSX:AC) was coming off record earnings and a terrific growth record for its stock over the 2010s. Shares of this TSX stock have climbed 21% in the year-to-date period. The stock has increased 59% from the prior year.

Last month, I’d gone over a few predictions for Air Canada this decade. Firstly, the airline industry is in a great position to post a big rebound in the first half of the 2020s. Savings rates for Canadians broadly increased during the pandemic, and many consumers will undoubtedly be hungry to travel after over a year-and-a-half of lockdowns and harsh restrictions.

Richard Vanderlubbe, the founder and owner of tripcentral.ca, predicted that a slew of new bookings could push up travel rates in the latter half of 2021 and heading into 2022. He said that his agency had already seen a spike in bookings for trips starting in November or later. Investors should expect a surge in travel as the pandemic moves further into the rear-view mirror.

This TSX stock is still trading in favourable value territory relative to industry peers. I’m still looking to snatch up Air Canada in early July.

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 Ambrose O'Callaghan has no position in any stocks mentioned. The Motley Fool recommends CINEPLEX INC.

More on Investing

Growth from coins
Dividend Stocks

3 Canadian Dividend Stocks That Are Dirt Cheap Right Now

These three Canadian dividend stocks look attractive with their above 6% yields and cheaper valuations.

Read more »

Money growing in soil , Business success concept.
Dividend Stocks

3 TSX Stocks That Could Make You a Millionaire

These three TSX stocks each have outstanding potential while trading undervalued today, creating significant opportunities for investors.

Read more »

supplements vitamins pills
Investing

Got $1,000? Buy These 2 Stocks and Hold ‘Til Retirement

Jamieson Wellness (TSX:JWEL) and Aritzia (TSX:ATZ) are great bargain growth stocks with huge profits.

Read more »

Business man on stock market financial trade indicator background.
Stocks for Beginners

Got 3,000? 3 Simple TSX Stocks to Buy Right Now

Here are three top TSX stocks to buy in these uncertain markets that could compound your long-term returns.

Read more »

Senior couple at the lake having a picnic
Tech Stocks

3 TSX Stocks That Are Great Long-Term Picks

October is a ripe time to buy growth stocks for wealth creation. Use the market downturn to tap the recovery…

Read more »

edit U-turn
Investing

Rebound Rockets: 2 Beaten-Down Stocks You’ll Be Happy You Own in 2027

A stock market decline in 2022 presents buying opportunities on beaten-down Magna International (TSX:MG)(NYSE:MGA) and Shopify (TSX:SHOP)(NYSE:SHOP) stock. Here’s why.

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

TFSA Investors: 3 Dividend Stocks You Haven’t Bought Yet, But Should

I get it, these dividend stocks aren't doing so hot these days. But investors should buy now and think long…

Read more »

analyze data
Investing

What Are the Best Canadian Stocks to Buy Now?

As markets continue to sell off and investments trade at massive discounts, here are the best Canadian stocks to buy…

Read more »