My 3 Favourite TSX Stocks Today

These three TSX stocks are my favourite based both on past performance and future growth. And each is still super cheap!

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Investors continue to be hungry for growth after the insane amount we saw in 2020 from TSX stocks. After a huge crash and a pandemic to boot, Canadians learned to save — a lot. In fact, analysts have stated that, on average, Canadians saved more in the last year than they have in the last three decades! While paying down debt should definitely be a top priority, investing didn’t seem to be as high. And that’s a massive mistake.

To create a stable passive-income stream, investing should also be a top priority. It doesn’t have to be risky, but you can still see that incredible growth you saw in 2020. It just might take a bit more time. And that’s good! Rather than seeing the volatile fluctuations we’ve practically grown used to, you can invest in stocks that are due for massive growth for years to come.

Right now, these are my three favourite TSX stocks that should do just that.

goeasy

It’s practically impossible to find tech stocks that have been around for decades, but goeasy (TSX:GSY) is one of them. The loan provider and rent-to-own company has seen immense growth in the last few decades when it came on the market. In fact, the company has seen share growth of 20,606% since coming on the market in 1990.

But the company’s shares haven’t diminished in that time. In fact, it continues to see record performance! goeasy stock was one of the top-performing TSX stocks this year, reporting record revenue. It also saw share growth of 219%. This comes in large part from its loan originations, which increased to $1.28 billion during the last quarter — up 10% from the previous year.

Yet goeasy stock isn’t slowing down for Motley Fool investors. It completed an acquisition of LendCare Holdings back in April, and its risk profile has also improved thanks to recent diversification. Furthermore, it still has a lot of room to expand within its addressable market of creating loans under $50,000. And above all, it remains cheap with a price-to-earnings (P/E) ratio of 11.05, making it a favourite that Motley Fool investors should definitely consider.

Onex

Since 2017, Onex (TSX:ONEX) was in a free fall. The company reached all-time highs and then started a downward trend that didn’t seem to be stopping anytime soon. The private equity firm that specializes in enterprise-level acquisitions dropped by 61% from peak to trough from July 2017 to March 2020. But then, the climb resumed.

It wasn’t just the climb out of the pandemic crash. In fact, recently analysts have seen a breakout underway for Onex stock. The company is now back at not just pre-crash prices, but share prices not seen since January 2020. This indicates it may be heading back towards all-time highs.

The company has a diverse range of assets, and an airline is one of them. Sure, it wasn’t a great buy before the pandemic, but it’s now back to revenue growth that can support its WestJet acquisition. This comes from its hiring spree, which supports its expansion in credit. The company aims to hit $295 billion in worldwide loans this year, mainly through private companies. This would be the highest level on record.

Shares of the stock are up 55% in the last year and climbing. So, Motley Fool investors should add this to their TSX stocks watchlist.

Aurinia

Finally, while some healthcare sectors soared during the pandemic, others faltered. Pharmaceuticals was certainly one of them. Revenue dropped for TSX stocks like Aurinia Pharmaceuticals (TSX:AUP)(NASDAQ:AUPH) with production coming to a crashing halt. But analysts predict that’s all about to change.

The company developed the first FDA-approved oral therapy for lupus nephritis. This would be a game changer and is expected to increase revenue substantially. In fact, analysts give Aurinia an average potential upside of 148% as of writing for the next year!

As production increases for pharmaceutical companies, each one is a great one to consider. But Aurinia is one of my favourites, as it already has a proven revenue stream ready to get into action. So, this is by far one of the TSX stocks to consider before earnings next month.

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 owns shares of Aurinia Pharmaceuticals. The Motley Fool has no position in any of the stocks mentioned.

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