We’re six months into the year, and the S&P/TSX Composite Index is already up 15%. It’s anybody’s guess as to how long this incredible bull run will last, but I’m definitely not selling any of my positions ahead of the country’s reopening.
Some investors may be looking to trim some of their winning positions while the market is at an all-time high. As a long-term investor myself, my focus is instead on loading up on top TSX stocks, regardless of the market’s price today.
Prices across the entire Canadian stock market seem high today, but that doesn’t mean there’s nothing worth paying a premium for.
High-priced growth stocks led the way for investors in 2020. But through the first few months of 2021, we saw many expensive growth stocks cool off. Over the past month, though, we’ve witnessed a surge in many top growth stocks across the TSX.
For long-term investors that aren’t concerned with starting positions while the market is at an all-time high, here are two Canadian companies that should be on your radar for the second half of the year.
TSX stock #1: WELL Health Technologies
Telemedicine was, unsurprisingly, one of the hottest areas of the market in 2020. The pandemic created a surge in demand for virtual doctor appointments, which led to massive growth for telemedicine stocks.
Many of the high-flying telemedicine stocks of 2020 have seen share prices come back down to reality this year. So, if you’re looking for a stock to deliver multi-bagger growth over the next year, you may have missed the boat with telemedicine stocks.
But if you’re a patient investor looking to earn market-beating returns over the long term, telemedicine is one area of the market you’re going to want to have exposure to.
At a market cap still below $2 billion, WELL Health Technologies (TSX:WELL) has plenty of growth potential ahead of it in the coming years. The company has already established a strong position in the industry and has a growing presence in the U.S., too.
Shares were up a market-crushing 400% in 2020 alone. The stock has been trailing the market year to date and is still trading below all-time highs.
If your portfolio is in need of some growth, this is a top stock you’ll want to buy while it’s trading at an opportunistic discount.
TSX stock #2: Lightspeed
At one point this year, Lightspeed (TSX:LSPD)(NYSE:LSPD) stock was down more than 20% year to date. The tech company, along with many of its peers, had a hard time at the beginning of 2021 continuing to deliver the type of growth that investors saw in 2020.
Valuations were also starting to get high towards the end of 2020, even for high-risk growth investors. So, it did not come as a complete surprise when the tech sector began lagging the broader market’s returns earlier this year.
Over the past month, there’s been a renewed interest in tech stocks. Shares of Lightspeed are up a market-beating 20% in the past month alone, putting it at close to a 25% gain on the year.
The tech company still commands a steep price, as it’s trading at a price-to-sales ratio above 60. Not many other TSX stocks are priced that high, but I also don’t think many can match the growth potential of Lightspeed over the next decade.
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 Nicholas Dobroruka owns shares of Lightspeed POS Inc. The Motley Fool owns shares of and recommends Lightspeed POS Inc.