3 Hot Canadian Stocks on a Breakout

Top Canadian stocks that recently broke above their usual range. These three offer decent growth prospects in the short and in the long term.

| More on:
potted green plant grows up in arrow shape

Image source: Getty Images

The second-quarter earnings season has been quite encouraging so far and has underlined the firm recovery. The momentum in the stock market could continue, driven by solid financial growth for the next few quarters. Here are three top Canadian stocks that recently broke above their usual range. These three offer decent growth prospects in the short as well as in the longer term.


Canada’s fast-growing fintech player Nuvei (TSX:NVEI) saw a breakout recently after its superior Q2 performance. The stock is up a massive 185% since last September, beating even top growth stocks by a wide margin.

Nuvei has been quite aggressive since its IPO last September. Notably, the e-commerce segment has substantially contributed to its organic growth. Its revenues grew by a strong 114% in Q2 2021 against the same quarter last year. At the same time, the company’s net income surged to US$39 million in Q2 2021 against US$14 million in Q2 2020.

Nuvei’s extensive geographical presence, scale, and diverse verticals could bode well for its earnings growth in the long term. Along with providing conventional payment gateways to merchants, the company also caters to sports wagering and cryptocurrency platforms.

After a strong Q2, the management has increased its guidance for 2021. This could further boost investor sentiment and fuel the stock higher.


Canada’s popular theatre chain operating company Cineplex (TSX:CGX) reported its Q2 2021 earnings on August 12. CGX stock surged 7% on August 12, despite widened losses.

Cineplex’s revenues almost tripled during Q2 compared to Q2 2020. While the company could take a while to turn back to being profitable, reopening hopes have notably cheered investors, at least for now. It announced that on July 17, the entire chain of Cineplex theatres started operating. That means Cineplex could see even steeper revenue growth in Q3 considering loosening restrictions in the country.

However, Cineplex continued to burn a massive amount of cash during the quarter. Its net cash burn came in at $72 million during Q2 2021. Notably, it came down from $27 million per month in Q1 2021 to $24 million in Q2 2021.

Cineplex operating with full capacity and patrons returning are undoubtedly some of the positive factors for the company. However, how fast it can turn profitable and plug the cash burn remains to be seen.


After trading rangebound around $6 for months, lithium miner stock Orocobre (TSX:ORL) broke out this month. The stock is currently trading at $9 and is up more than 210% in the last 12 months.

Orocobre is a $3 billion Australia-based lithium carbonate supplier. The demand for lithium carbonate substantially increased in the last few years, mainly due to massive investments in the EV space.

It produces both EV-grade and industrial-grade lithium carbonate in its marker Olaroz facility in northern Argentina. It is also building a lithium hydroxide plant in Japan in partnership with Toyota Tsushe Corporation.

Orocobre and peer Galaxy Resources announced their merger in April this year to create the fifth-largest lithium chemicals company globally. Interestingly, an EV boom is to stay here for the next decade, and Orocobre looks well placed to cater to the swelling demand.

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 recommends CINEPLEX INC. Fool contributor Vineet Kulkarni has no position in any of the stocks mentioned.

More on Tech Stocks

Woman has an idea
Tech Stocks

2 No-Brainer Stocks to Buy With $500 Right Now

Given their solid financials, healthy growth prospects, and attractive valuation, I am bullish on these two TSX stocks.

Read more »

Business success with growing, rising charts and businessman in background
Tech Stocks

A Bull Market Is Coming: 1 Growth Stock Down 33% to Buy and Hold Forever

Here's why quality growth stocks such as Aritzia are compelling long-term bets for TSX investors.

Read more »

Shopping and e-commerce
Tech Stocks

1 Tech Stock You’ll Be Glad You Bought When the Bull Market Starts

Historically, tech stocks have done well during bull markets. Here’s one you’ll be happy you bought before the next bull…

Read more »

A person builds a rock tower on a beach.
Dividend Stocks

3 Stocks to Anchor Your Portfolio in a Rocky Market

Three stocks are solid anchors in any portfolio today for their outperformance in a weak market and defiance of the…

Read more »

edit Sale sign, value, discount
Tech Stocks

2 Cheap Tech Stocks to Buy Right Now

Many tech stocks offer exceptional returns compared to other stock sectors when the market is bullish. You can add to…

Read more »

Hands shaking over a business deal
Tech Stocks

Got $5,000? These 2 Growth Stocks Are Smart Buys

Are you looking to invest $5,000 in the stock market? Here are two of the best growth stocks you can…

Read more »

man sitting in front of 3 screens programming
Tech Stocks

2 Best Software Stocks to Buy in 2023 and Beyond

Salesforce (NYSE:CRM) and Constellation Software (TSX:CSU) are the two best software stocks to buy this year and beyond.

Read more »

consider the options
Tech Stocks

Is it Too Late to Buy Shopify Stock?

Shopify is one of the most popular stocks on the market. Is it too late to buy shares?

Read more »