Post-Election Buy Alert: 2 Excellent Recovery Plays

With the elections over, economic recovery could proceed without delay. For growth investors, it’s time to take positions in the Ballard Power Systems stock and TFI International stock. Both top-performing growth stocks are excellent recovery plays.

The TSX had a mild rally following Justin Trudeau’s re-election on September 20, 2021. Canada’s primary stock market index rose three trading days in a row before retreating to 20,402.70 to close the election week. While the Liberals didn’t capture the majority, there’s optimistic the economic outlook would improve further.

According to Sadiq Adatia, chief investment officer at BMO Asset Management, the market welcomed the status quo. He said, “Investors are happy to see that the economy will continue to move forward.” Adatia adds the reopening plans will continue to move in the direction that’s already in place.

Meanwhile, in post-election, investors looking for excellent recovery plays could include two top-performing growth stocks in their shopping lists. Ballard Power Systems (TSX: BLDP)(NASDAQ: BLDP) and TFI International (TSX: TFII)(NYSE: TFII) are among the chosen few in the recently released TSX30 List. The respective businesses should thrive as economic recovery shifts to high gear.

Consistent TSX30 member

Ballard Power Systems has been a consistent member of the distinguished list since the TMX Group launched the program in 2019. The industrial stock ranked 12th and 2nd in the first and second editions, respectively. In 2021, Ballard is in the fourth spot owing to its +495% three-year performance.

Ballard’s goal is to accelerate the adoption of fuel cell technology. The $5.55 billion company is a provider of innovative energy fuel cell solutions. It’s known worldwide as the leader in developing and commercializing proton exchange membrane (PEM) fuel cell power systems.

Apart from Burnaby in British Columbia, Ballard has facilities in Denmark and China. The Chinese market, in particular, is huge, so pursuing technology transfer and licensing opportunities with local partners is an ongoing concern. Management’s goal is to localize the manufacture of Ballard-designed fuel cell modules and stacks for heavy-duty motive applications.

While net loss magnified 67% to US$39.7 million in the first half of 2021 versus the same period in 2020, Ballard continues to make progress in the execution of its strategy. Its President and CEO, Randy MacEwen, said the global policy announcements supporting decarbonization should move at a record pace. The fuel cell market is expected to grow to US$4.5 billion by 2027.

Exponential business growth

TFI International is a new entrant in the 2021 TSX30 List. The $12.5 billion company hails from Saint-Laurent and provides transportation and logistics services in Canada, Mexico, and the United States. Current investors are more than delighted with the stock’s performance thus far in 2021.

At $134.71 per share, the year-to-date gain is 106.7%. The industrial stock also pays a modest 0.87% dividend. Before the pandemic, TFI was an obscure name on the TSX. Its business, as well as the stock, gained momentum at the onset of the pandemic. On March 18, 2021, the share price was only $33.43.

Had you invested $25,000 then, your money would be worth $100,740.35 today. The capital gain was 303%. In the first half of 2021, the adjusted EBITDA, operating income, and net income growths versus the same period in 2020 were 45.8%, 125.9%, and 199.4%. The numbers prove TFI’s business is thriving.

Post-election scenario

The post-election is the period to fulfill the campaign promises. Also, Canadians must close ranks to focus on a swift economic recovery. Last, growth-oriented entities like Ballard Power Systems and TFI International will likely to deliver massive gains to investors.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends TMX GROUP INC. / GROUPE TMX INC.

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