2 Top Breakout TSX Stocks to Buy Right Now

The Capstone Mining stock and NuVista Energy stock are two of the screaming buys right now. Both are non-dividend payers but their breakouts could result in explosive gains.

The purpose of investing in stocks is to make money or make a meager capital multiply. It would help if people who are new to the Toronto Stock Exchange (TSX) to understand the two market cycles: the bull and bear markets. The former connotes rising stock prices, while the latter is when the value of securities is falling.

Currently, investors’ sentiment in Canada’s main stock exchange is bullish. The index is showing resiliency so far amid a global pandemic. Its year-to-date gain is 15.78%, and all 11 primary sectors are in positive territory.

Whether you’re a newbie or have experience buying and selling stocks, now is an excellent time to allow your money to work. You don’t have to spend much on Capstone Mining (TSX: CS) and NuVista Energy Limited (TSX: NVA), as both high-flyers could cap the year with explosive returns.

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“New oil”

All eyes are on copper following a 130% price growth to US$10,512 per metric ton in May 2021. Some analysts even describe the multi-functional and red-colored metal as the “new oil.” In early May, Michael Widmer, commodity strategist at Bank of America, said copper prices could rise to US$13,000 before it doubles to US$20,000 per metric ton by 2025.

Capstone Mining, a $2.28 billion base-metals producer from Vancouver, has two producing copper mines. The locations are in Arizona, U.S.A. (Pinto Valley Mine) and Zacatecas, Mexico (Cozamin Mine). Santo Domingo in Chile is its top quartile copper-iron-gold project.

Investors in this mining stock couldn’t be more pleased with the 133.19% gain thus far in 2021. The trailing one-year price return is 460.61%. Market analysts recommend a strong buy rating. They see a potential upside of 44.38% to $8.03, given the depleting copper inventory in the coming years.

In Q1 2021 (quarter ended March 31, 2021), Capstone’s net income was $127 million on $204.1 million revenue. The top line increased by 189.91% versus Q1 2020. Last year, the company reported a $21.9 million net loss. The $95 million operating cash flow during the quarter was Capstone’s most potent in 15 years. President and CEO Darren Pylot proudly announced too that Capstone is now debt-free.

Hotter than the industry giants

Energy is the TSX’s hottest sector in 2021 following a forgettable year. It outperforms the broader market (+42.68%) by a mile. Popular stocks like Enbridge, Pembina Pipeline, and TC Energy are back in the limelight. However, small player NuVista Energy (+293.62%) outshines them all, with its 239.62% year-to-date gain,

The current share price of $3.70 is 400% higher than it was a year ago. Also, had you invested $5,000 in this energy stock on year-end 2020, your money would be worth $19,680.85 today. This $835.62 million oil and natural gas company isn’t a dividend player, unlike the industry giants.

Nonetheless, the capital gain could more than compensate for the non-payment of dividends. Market analysts believe the stock price could still rise between 24.32% and 102.7% in the next 12 months. Things are looking good for NuVista after Q1 2020. In the three months ended March 31, 2021, net income was $15.4 million compared to the $788.7 million net loss in the same period last year.

Time to buy

Capstone Mining and NuVista should be in growth investors’ radars by now. Snag them before the prices soar even higher in 2021 and beyond.

Bank of America is an advertising partner of The Ascent, a Motley Fool company. Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends PEMBINA PIPELINE CORPORATION.

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