TSX stocks at large might seem a tad exhausted after a steep rally since last year. However, the following three names stand remarkably tall among them. Moreover, these Canadian stocks have recently gathered momentum and could continue to trade strong in the long term.
Nuvei (TSX:NVEI) stock has been on a roll this year. It is up a handsome 140% since last September and still has a lot of steam left. Its recent second-quarter earnings indicate a large underlying potential.
Canada’s fast-growing fintech company Nuvei managed to increase its revenues by a robust 114% in Q2 2021 compared to the same quarter last year. E-commerce has yet again been the biggest growth driver for the company, contributing almost 84% of the total revenues.
Its net income zoomed to US$39 million in Q2 2021 against US$14 million in Q2 2021. Nuvei continues to clock healthy gross profit margins of close to 82% in the recently reported quarter. After a recent strong performance, Nuvei management has raised guidance notably for the year 2021. It now expects revenues of approximately US$700 million for 2021, double from last year.
Nuvei provides payment gateways to financial service providers, online retail, and cryptocurrency and sports-wagering platforms.
NVEI stock might continue to soar higher after its superior quarterly earnings and upped guidance. So, even though the stock looks overvalued at the moment, it looks like an attractive investment proposition for long-term investors.
Bragg Gaming Group
Here’s an under-the-radar TSX growth stock for aggressive investors. Since February, Bragg Gaming Group (TSX:BRAG) stock has fallen almost 65% and is still sitting at a sizeable gain of 180% for the last 12 months. The stock has seen a breakout recently, gaining more than 35% since last week.
Bragg is a $230 million global B2B online gaming solution provider company. It recently expanded its reach in Greece after receiving a licence to supply exclusive content via its game servers. In May 2021, it announced an acquisition of Spin Games, which could expand its presence in the U.S.
It operates in regulated or licensed markets and earns revenues on a sharing basis from the operators. Its customers include online casinos, sports wagers, virtual games, and lotto. Importantly, Bragg’s customer base has tripled in the last two years and serves 128 customers as of May 2021.
The pandemic and ensuing lockdowns were catalysts for online gaming companies. Bragg’s decent top-line growth highlights that. Though it’s a loss-making venture at the moment, superior revenue and customer growth could drive the stock notably higher.
Canadian banks will report their fiscal third-quarter earnings later this month. While almost all the top bank stocks look well placed amid the economic recovery, I particularly like Toronto-Dominion Bank (TSX:TD)(NYSE:TD).
Mainly because of its relatively better cash position and decent dividend yield, I think TD Bank could continue to outperform Canadian bank stocks at large.
Canada’s second-biggest bank TD will report its earnings on August 26. While the revenue and earnings growth could drive the stock higher, any leads on the probable dividend hike will likely notably boost investor sentiment.
TD Bank stock has returned 45% since last year. Despite the rally, the stock looks discounted against peers and could keep trading strong post-earnings.
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 has no position in any of the stocks mentioned. Fool contributor Vineet Kulkarni has no position in any of the stocks mentioned.