I’m a firm believer that all investors should have a watchlist. Creating a list of companies you’re interested in buying gives you the opportunity to do research on each stock. Once you’re satisfied with the amount of research you’ve conducted, you can then compare the pros and cons of each company and decide which stock is the best to buy at that moment. A watchlist is also great to have, since it’s an easy way to keep tabs on companies that have interested you but not enough to buy just yet. Here are three top stocks to put at the top of your watchlist.
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A stock market hero in 2020, largely forgotten in 2021
The telehealth industry was one of the hottest areas to invest in last year. This may have been due in large part to the COVID-19 pandemic. Whatever the true reason for its popularity last year, there’s no denying that companies operating within the industry saw massive gains. One company that Canadians should have noted is WELL Health Technologies (TSX: WELL). The company operates 76 primary healthcare clinics and offers a suite of software solutions to healthcare professionals.
In 2020, WELL Health stock gained more than 400%! However, the stock is down nearly 14% so far this year. This lack of continued success in the stock market may be deterring investors to continue holding shares in the company. However, when considering the potential growth within the wider telehealth industry, investors could realize that WELL Health could see a lot of growth from here. The global telehealth industry is expected to grow at a CAGR of 26.5% from 2020 to 2026. If WELL Health manages to remain in the mix, shareholders could see massive gains.
The growth of the e-commerce industry will drive this company forward
One of my favourite areas to invest in is the e-commerce industry. I believe investors that are exposed to leading companies within that industry are setting themselves up for success. The e-commerce industry may have already grown significantly over the past few years. However, we’re still very much at the start of the story. With that in mind, investors should consider adding Goodfood Market (TSX: FOOD) to their watchlists.
Goodfood is an online grocery and meal kit company. It’s estimated that the company holds a 40-45% share of the Canadian meal kit industry. From 2017 to 2021, Goodfood has managed to scale its business tremendously. Over that time, the company has increased its production facilities from one to nine and its number of grocery SKUs from zero to 1,000. Goodfood remains focused on growth in the years ahead. It plans to continue increasing its total SKUs to 4,000 and bring same-day deliveries to its Ottawa, Vancouver, and Quebec City markets.
E-commerce can’t operate without companies like this one
As amazing as the e-commerce industry may be, its growth can’t happen without the help of payment-processing companies. These are companies that allow businesses to complete online transactions. On the TSX, the leading player in that space is Nuvei (TSX: NVEI). The company is present in 204 global markets, accepts 480 payment methods and is compatible with 150 currencies and 40 cryptocurrencies.
Nuvei has been able to grow at a rapid pace, due in large part to its aggressive merger and acquisition strategy. In the past month alone, Nuvei has announced that it has completed the acquisition of Simplex and an upcoming acquisition of Paymentez. The latter continues Nuvei’s expansion into Latin America — an area expected to grow at a rapid rate over the coming years due to a growing middle class. Finally, Nuvei could start to see massive gains, as it completes its American IPO. On October 4, the company announced it had begun the process to list on the NASDAQ.
