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4 Top TSX Stocks That Are Finally Bouncing Back

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It seems like we’ve been living in this pandemic forever, but everything must come to an end. It seems that many Motley Fool investors have already noticed. Some of the top TSX stocks that have traded downwards for years are starting to show signs of life. So, today, I’m going to look at four that investors should at the very least keep their eye on.

Bombardier

For years, Motley Fool investors waited around wondering when, or even ifBombardier (TSX:BBD.B) would rebound. Investing in Bombardier stock in that time felt like investors were due for a crash landing. However, since entering penny-stock territory, it looks like Bombardier stock may actually start trending upwards. In fact, there are real signs of life, with the company ordering 10 business jets worth US$451.8 million. That’s the biggest sale of the year!

Shares of the company are up 231% in the last year alone and 200% year to date! Of course, that’s still a long climb to the highs seen in 2018, and it still only puts shares at about $1.50. But analysts believe more growth could be in the future. While the stock remains volatile, Bombardier stock is still one of the TSX stocks I would consider watching for now.

Alimentation Couche-Tard

The economy is reopening, and Alimentation Couche-Tard (TSX:ATD.B) is able to take global advantage. The company continued its growth-through-acquisition strategy, even during the pandemic with revenue down. Now, commuters and travellers are returning. This could lead to immense growth in the near and far future. Convenience and gas sales have already started increasing, leading to share increases as well.

Total merchandise and service revenues jumped by 15.2% during the last earnings report to US$3.7 billion, and net earnings rose 10.6% during that time. With offices and shops reopening across the country, and Alimentation continuing to buy up businesses in Europe and Asia, this is definitely one of the top TSX stocks to watch.

Cenovus Energy

Motley Fool investors I believe continue to underestimate the growth potential of Cenovus Energy (TSX:CVE)(NYSE:CVE). The energy company turned into an energy giant when it merged with Husky Energy, creating $1 billion in synergies from the move. It is now the country’s largest oil sands producer and third-largest energy producer, already generation $1.1 billion in adjusted funds flow.

Shares are up 87% in the last year but still trade at just $11 per share. That’s a bargain considering its price-to-book ratio of one and price-to-sales ratio of 1.2! And on top of that, analysts predict the stock could double in the next year, making this one of the TSX stocks you’re likely to want to buy even a small stake in to see what happens.

Cameco

Finally, while investors hum and haw about the future of clean energy, Cameco (TSX:CCO)(NYSE:CCJ) has been screaming, waving its arms that it has the solution right now! In fact, President Joe Biden has already stated his administration would include nuclear energy in its US$2 trillion clean energy plan. That alone could see Cameco — one of the world’s largest nuclear energy producers — shares rise.

Since the new president came into office, shares of Cameco have risen by 32%. And that’s only the United States. There are dozens of nuclear reactors being built around the world, especially in China, where there is a massive move away from coal. This could see shares in the company explode over the next few years. After years of poor performance, this is one of the TSX stocks that could be a multi-bagger in the years to come.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends ALIMENTATION COUCHE-TARD INC.

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