Value for Money: 2 TSX30 Winners to Own for Less Than $7

Growth investors can take advantage of the low prices of two 2021 TSX30 members. Capstone Mining stock and EcoSynthetix stock are great buys if you’re chasing superior returns in the near term.

| More on:
Value for money

Image source: Getty Images

The highly anticipated TSX30 list for 2021 is out. Growth investors have a wide selection of investment prospects entering the fourth quarter of this year. It’s the third edition of TMX Group’s flagship program that showcases Canada’s top-performing growth stocks.

Shopify, number one in 2020, slid to second place, although it remains a solid choice, because it could dominate the e-commerce space soon. However, the tech stock is expensive at $1,828.89. Capstone Mining (TSX:CS) and EcoSynthetix (TSX:ECO) are viable choices for frugal investors. You can own them for less than $7 per share.

Transformational growth

Capstone Mining is in the top five due to its 433% return in the last three years. Also, the current share price is only $5.04. The $2.87 billion company prides itself as an innovative copper producer positioned for transformational growth. It has two producing copper mines (U.S. and Mexico) and owns a large-scale, fully-permitted copper-iron-gold project (Santo Domingo) in Chile.

Management impressed investors with Capstone’s production and financial results after two quarters in 2021. Total revenue jumped 136.2% in the first half of this year versus the same period in 2020. From a net loss of 417.6 million, the company posted $176.4 million in net income.

In Q2 2021, Capstone generated a record $110 million in operating cash flow. Year to date, the total operating cash flow was $205 million, according to its SVP & CFO, Raman Randhawa. The net cash balance increased to $172 million. Notably, Capstone had $225 million in the undrawn corporate revolving credit line.

Regarding the year-to-date copper production and sales, Capstone reported increases of 23.1% and 35.1%, respectively. Randhawa added, “Cashing up at the forefront of our transformational growth phase will allow Capstone to execute on Santo Domingo and many other robust, high-impact projects.”

Capstone’s current share price is 238.3% higher than a year ago, and the mining stock is up 111.8% year to date. Market analysts recommend a strong buy rating and forecast a potential upside of between 22% and 57% in the next 12 months.

Investing for growth

EcoSynthetix in the basic materials sector flies under the radar. This stock made it to the TSX30 list (rank no. 14) owing to its +243% three-year performance. The current share price is $6.16, which is good for a 66.9% gain thus far in 2021. However, had you invested $10,000 a year ago, your money would be worth $28,127.85 today.

The $353.05 million renewables energy company specializes in bio-based materials. EcoSynthetix’s flagship commercial products reduce their customers’ use of harmful materials like formaldehyde and styrene-based chemicals.

Ecosphere biolatex is widely used globally in the paper and paperboard packaging industries. The product is a suitable replacement for petroleum-based Styrene Butadiene latex binders. EcoSynthetix customers use DuraBind biopolymer, a no-added formaldehyde binder system to produce wood composite panels.

Jeff McDonald, EcoSynthetix’s CEO, said, “Our primary focus is delivering meaningful growth in the wood composites end market as part of our multiple shots on goal product strategy.” The company is investing for growth and hopes its green technology platforms help customers reduce their carbon footprints significantly.

Value for money

Capstone Mining and EcoSynthetix deserve to be on the TSX30 list. The stocks’ performances in 2021 reflect their business growth. You get value for money when you invest in one or both. Also, the potential returns could be better than Shopify’s.

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 Shopify. The Motley Fool recommends TMX GROUP INC. / GROUPE TMX INC. and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.

More on Metals and Mining Stocks

Gold bars
Metals and Mining Stocks

Why Alamos Gold Jumped 7% on Wednesday

Alamos (TSX:AGI) stock and Argonaut Gold (TSX:AR) surged after the companies announced a friendly acquisition for $325 million.

Read more »

Nuclear power station cooling tower
Metals and Mining Stocks

If You’d Invested $1,000 in Cameco Stock 5 Years Ago, This Is How Much You’d Have Now

Cameco (TSX:CCO) stock still looks undervalued, despite a 258% rally. Can the uranium miner deliver more capital gains to shareholders?

Read more »

Super sized rock trucks take a load of platinum rich rock into the crusher.
Stocks for Beginners

Cameco Stock and More: 3 TSX Commodity Titans to Watch in 2024

Cameco stock and these others will provide you with growth that goes beyond just a year or two, with all…

Read more »

Handwriting text writing Are You Ready For Tomorrow question. Concept meaning Preparation to the future Motivation Stand blackboard with white words behind blurry blue paper lobs woody floor.
Stocks for Beginners

3 Reasons to Buy Lundin Stock Like There’s No Tomorrow

Lundin stock (TSX:LUN) has been killing its production of copper and plans on blowing its records out of the water…

Read more »

Gold bars
Stocks for Beginners

TSX Materials in March 2024: The Best Stock to Buy Right Now

Materials have been quite volatile, though the price of gold has surged to all-time highs. That makes this stock a…

Read more »

Gold bars
Metals and Mining Stocks

Will Gold Stocks Rally in 2024?

Down almost 30% from all-time highs, Franco-Nevada is a gold mining stock trading at a discount to consensus price target…

Read more »

A miner down a mine shaft
Stocks for Beginners

Canadian Mining Stocks: Buy, Sell or Hold?

Canadian mining stocks have seemed like such a strong investment, but with shares down significantly this year, what should we…

Read more »

Gold king in chess game face with the another silver team on black background (Concept for company strategy, business victory or decision)
Stocks for Beginners

Great News for Gold Stock Investors!

Gold has hit an all-time high! Which is good news for some gold stocks, and really good news for others.

Read more »