3 Top Canadian Stocks to Buy Before Summer Ends

Three top Canadian stocks could deliver substantial windfalls in the next 12 months. Buy Jamieson Wellness stock, Village Farms stock, and Alcanna stock before summer ends.

| More on:

Canada’s primary stock market index has posted four straight weeks of gains after closing at 20,518.10 on August 13, 2021. The TSX’s all-time high is 20,554, achieved only two trading days earlier. Besides strong corporate earnings, higher energy and petroleum products prices could be why the index edged higher again.

For growth investors, three Canadian stocks are worth buying before summer ends. Jamieson Wellness (TSX:JWEL), Village Farms International (TSX:VFF)(NASDAQ:VFF), and Alcanna (TSX:CLIQ) are potential multi-baggers that could fill your pockets with considerable capital gains.

Positive growth opportunities

Health and wellness aren’t a growing trend anymore. It’s now firmly entrenched in the consciousness of everyone due to the pandemic. Jamieson Wellness should benefit significantly from this changing consumer behaviour for years to come. In Q2 2021, the $1.39 billion company reported an 18.6% and 91.7% increase in revenue and net earnings.

Mike Pilato, Jamieson’s president and CEO, said it was another outstanding quarter of growth across the business. Because of the impressive earnings growth, management increased the quarterly dividend (20%). The current share price of the manufacturer of natural health products is $34.96, while the dividend yield is 1.72%.

Jamieson expects to end fiscal 2021 with an annual growth of between 7.8% and 10.2%. The positive business outlook stems from the continuing strong growth in domestic brands. However, management said a strong Canadian dollar would impact the volume growth of international brands.

Future long-term market leader

At $11.17 per share, Village Farms is down 13.34% year to date. Nonetheless, market analysts recommend a strong buy rating. They forecast an 85.89% potential return, as the federal legalization of marijuana in the U.S. draws near. Pure Sunfarms, a 100%-owned premier cannabis supplier, is the primary growth driver.

The specific goal is a 20% market share in the domestic dried flower market. While the net loss in the first six months of 2021 ballooned to US$11.7 million compared to the US$492 net income in the same period in 2020, the 54% increase in total sales is noteworthy.

Village Farms, through Pure Sunfarms, aims to be the long-term market leader in Canada’s cannabis market. If you want exposure to the cannabis sector, this vertically integrated greenhouse grower has a competitive advantage over the bigger industry players.

Value segment strategy

Alcanna flies under the radar, although it deserves to be on your watchlist. On July 14, 2021, national cannabis retailer Nova Cannabis graduated to the TSX. Alcanna is the majority owner of Nova. This $244.02 million company has a strong position in liquor retailing and should soon win a significant share of the cannabis market.

Management’s advocacy is the art of responsible retail, especially in highly regulated controlled substances. Alcanna combined its retail cannabis business with YSS Corp. to form Nova Cannabis. The goal is to replicate Alcanna’s success in capturing the value segment in Alberta’s liquor retail market.

In Q1 2021 (quarter ended March 31, 2021), Alcanna’s net earnings grew exponentially to $47.6 million compared to the $9.3 million net loss in Q1 2020. Like Village Farms, Alcanna is well positioned for the cannabis market. Nova Cannabis should deliver massive profits in a couple of years.

Substantial capital gains

The one thing in common with Jamieson Wellness, Village Farms, and Alcanna is the long growth runway. All three are screaming buys before summer ends. The capital gains in the near term should be substantial.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Village Farms International Inc and Village Farms International, Inc.

More on Dividend Stocks

woman checks off all the boxes
Dividend Stocks

CPP Collectors: Here Are 3 More Red Flags the CRA is Watching

Worried about the CRA? Stop immediately by taking these steps and investing wisely.

Read more »

Person holding a smartphone with a stock chart on screen
Dividend Stocks

This 7.4% Dividend Stock Is My Top Pick for Immediate Income

With a solid 7.4% dividend yield, a proven history of dividend growth, and strong fundamentals, it offers both stability and…

Read more »

Hand Protecting Senior Couple
Dividend Stocks

How Should Canadians Calculate the Perfect Retirement Income for Maximum Benefits

Here's how Canadians should calculate the perfect retirement income for maximum benefits.

Read more »

Train cars pass over trestle bridge in the mountains
Dividend Stocks

1 Canadian Railway Stock That’s Built for the Long Haul

A Canadian railway stock with solid growth fundamentals and a network that connects a continent is built for the long…

Read more »

dividend stocks are a good way to earn passive income
Dividend Stocks

1 Dividend Stock Down 14% to Buy for Lifetime Income

Buy it when it drops, hold it for forever. That's the kind of stock every investor should want.

Read more »

Canadian dollars are printed
Dividend Stocks

This 5.5% Dividend Stock Is a Cash Flow Machine

Are you worried about the future? Worry no more with this top dividend stock.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

I’d Put My Entire TFSA Into This 5.8% Dividend All-Star

If you're looking at a place to pop your TFSA contribution, stop right now and consider this dividend all-star.

Read more »

Person holds banknotes of Canadian dollars
Dividend Stocks

A 4.9% Dividend Stock Paying Cash Every Single Month

Do you need cash on a regular basis? Then pick up this one while it's still a great price.

Read more »