3 of the Best TSX Stocks That Could Fly in This Quarter

Here’re three of the best TSX stocks that could stage a big rally this quarter and beyond.

| More on:
5G chip

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

The TSX Composite Index has started the third quarter on a slightly mixed note after consecutively rising in the previous five quarters. The Canadian market benchmark is currently trading with less than 1% quarter-to-date gains after inching up by nearly 16% in the first half of the year. Nonetheless, some stocks still look cheap as their improving financials could help them surge in the second half of this year.

Let’s take a closer look at three of such stocks that I expect to fly this quarter and beyond.

Magna International stock

Magna International (TSX:MG)(NYSE:MGA) could be one of the best stocks to bet on right now as its financials are rapidly improving this year. The company faced several challenges last year due to a sudden and sharp decline in automobile demand amid the pandemic. That’s why its sales fell by 17% in 2020.

On the positive side, a sharp recovery in vehicle demand globally boosted Magna’s first-quarter revenue by nearly 18% on a year-over-year basis. As the ongoing automobile demand recovery continues in the coming quarters, the company’s sales are likely to improve further. It could be one of the reasons why analysts expect a more than 25% YoY rise in its 2021 sales.

Magna International’s stock has risen by 26% this year so far. I expect its ongoing rally to extend to the second half of the year.

National Bank of Canada stock

National Bank of Canada (TSX:NA) is another great Canadian stock you may want to buy in July. Last month, its stock fell by 2.4% after consistently rising for the previous five months in a row. With this, the stock is still trading with solid 30.4% year-to-date gains.

As the improving economic environment is becoming more conducive to business growth, it’s a wise decision to add a banking sector stock to your portfolio right now. Despite facing COVID-19 driven operational challenges, the National Bank of Canada’s total revenue rose by 7% YoY to $8.2 billion in the fiscal year 2020. Moreover, the bank’s revenue growth rate improved further in the last couple of quarters.

Its strong credit quality, solid wealth management segment performance, and improving core banking operations could help the National Bank of Canada stock rally in the second half.

BlackBerry stock

BlackBerry (TSX:BB)(NYSE:BB) has been one of the top-performing stocks on the TSX this year. In the last nine months, the stock has risen by nearly 150% against a 25% increase in the TSX Composite benchmark. The ongoing Reddit trading mania partly helped it rally in the first half of the year. In my opinion, its improving fundamentals are another big reason for driving its stock higher.

BlackBerry has been preparing to benefit from the fast-growing electric and autonomous vehicle demand. The company has increased its focus on developing useful technologies for futuristic vehicles — that could help it gain big from the upcoming self-driving and electric car revolution, I believe.

Apart from these positive factors, the rising demand for its cybersecurity solutions could help BB stock yielded solid returns.

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 and Magna Int’l. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Tech Stocks

grow money, wealth build
Tech Stocks

How to Create $100,000 by Investing $500/Month

These two TSX stocks will aid you in building wealth of $100,000 over the next 8.5 years.

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Tech Stocks

This Battered Growth Stock Could Soar Over the Next 3 Months

Docebo (TSX:DCBO)(NASDAQ:DCBO) is a top work-from-anywhere stock that may be in for a sizeable move to the upside in coming…

Read more »

financial freedom sign
Tech Stocks

3 Selloff Stocks That Could Set You Up for Life

Are you hoping to take advantage of the stock market selloff? Here are three stocks that could set you up…

Read more »

question marks written reminders tickets
Tech Stocks

Docebo (TSX:DCBO) Stock Is Still Down 63%: Should You Buy it?

The growth potential of many new tech stocks that joined the TSX during the pandemic may have been exaggerated, and…

Read more »

Plant growing through of trunk of tree stump
Tech Stocks

2 Growth Stocks Investors Should Buy Today

Are you looking for stocks to add to your portfolio? Buy these two growth stocks today!

Read more »

Male IT Specialist Holds Laptop and Discusses Work with Female Server Technician. They're Standing in Data Center, Rack Server Cabinet with Cloud Server Icon and Visualization
Tech Stocks

3 Tech Stocks I am Buying During a Correction

High-growth tech stocks such as Docebo and Shopify should remain part of your buying list right now.

Read more »

exchange-traded funds
Tech Stocks

2 Tech Sector ETFs to Buy for a Recovery

Individual tech stocks might not fit the risk appetite of many conservative investors. Though, gaining exposure to the entire sector…

Read more »

Growing plant shoots on coins
Tech Stocks

3 Growth Stocks Are Back in the Game: Up to 83% Upside to Come!

Buying a basket of diversified growth stocks can accelerate your retirement plan. Alternatively, you can use profits for a nice…

Read more »