Investing is inherently a very personal endeavour. There will always be companies that certain investors think will do very well and others that think those same companies are destined for failure. As such, it can be difficult for everyday investors to decide which companies to include in their portfolios. In this article, I discuss my three top TSX stocks for the rest of 2021. I believe these companies are set up to succeed this year but also in the years to come.
This is my largest TSX holding
My top pick among all TSX-listed companies is Shopify (TSX:SHOP)(NYSE:SHOP). The company is listed on the TSX 60, which is a list of 60 large Canadian companies that lead important industries. Despite its large size, Shopify has the potential to grow significant amounts from here. In its two most recent quarterly earnings presentations, Shopify has reported year-over-year increases in revenue of 110% and 57%, respectively.
What’s interesting is that Shopify’s stock price seems to move alongside its revenue. As the company’s revenue continues to increase, investors can expect to see similar moves in its stock price. Shopify has gained about 5,300% since its IPO in May 2015, but this stock still has a lot of room to grow.
A stock that has shown resilience
In 2020, Docebo (TSX:DCBO)(NASDAQ:DCBO) was one of the most impressive stocks on the TSX. Since hitting its lowest point during last year’s market crash, the company saw its stock gain about 650%. Because of that massive growth, investors expected very big things from the company this year. However, it struggled early. In the first quarter this year, Docebo stock fell about 40%. However, since the start of April, Docebo has rebounded gaining about 90%!
The company has a lot of traction, which should keep it trading at all-time highs barring any major economic catastrophe. At the end of last year, Docebo announced that it had secured a multi-year partnership with Amazon. The company also listed on the NASDAQ exchange, giving it more access to capital. This is a top stock with lots of momentum and a very long growth runway ahead.
A reliable compounder is gaining momentum
Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) has been on my watchlist for a very long time. It is one of the most reliable stocks in Canada. Since August 1995, Brookfield stock has managed to produce an average annual return of nearly 16%. For perspective, that would have turned a $10,000 investment into nearly $470,000. Over the same period, the TSX has gained about 6% per year.
Although its business isn’t the most exciting, Brookfield does know how to make money. The company invests in and operates assets within the real estate, infrastructure, and utility industries. Last month, Brookfield announced that it would be partnering with Tesla to develop North America’s largest sustainable neighbourhood. With innovative plans like that in place and a top-notch management team behind the company, investors should rest assured that Brookfield is destined for success over the long run.
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.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Jed Lloren owns shares of Docebo Inc., Shopify, and Tesla. The Motley Fool owns shares of and recommends Amazon, Brookfield Asset Management, Docebo Inc., Shopify, and Tesla. The Motley Fool recommends Brookfield Asset Management Inc. CL.A LV and recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2023 $1,140 calls on Shopify, short January 2022 $1,940 calls on Amazon, and short January 2023 $1,160 calls on Shopify.