Don’t Miss the Bus: 3 Great Buys for Year-End 2021

Three growth stocks that made the TSX30 list three years in a row are the top choices if you want great buys to cap 2021.

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The 2021 TSX30 list is the third edition of TMX Group’s flagship program that showcases the top growth stocks. But what do Ballard Power Systems (TSX: BLDP)(NASDAQ: BLDP), Wesdome Gold Mines (TSX: WDO), and Cargojet (TSX: CJT) have in common? All three names made the list in all three years.

If you want great year-end buys, snag the stocks now or miss the bus heading for 2022. You can consider them elite because they have meteoric gains, like Shopify. The tech superstar is also on the list from 2019 to 2021. No other company achieved the milestone like these four high-growth stocks.

Global leader

Ballard delivers fuel cell power globally, particularly to public transit. Fuel cell electric buses powered by Ballard attain over 35,000 hours of revenue service. The $6.68 billion company has spent around $1 billion to develop fuel cell products over the past four decades.

Today, top brands like ElDorado (transit bus), Siemens (light rail), Mahle (truck), Audi (Automotive), ABB (marine), and Plug Power (material handling) use Ballard fuel cell solutions or stacks. Among its strategic shareholders are Weichai (automotive and equipment manufacturing) and Anglo American (mining).

Performance-wise, Ballard’s total return in the last three years is 379.8% (68.48% CAGR). The share price is $22.43 if you invest today.

Top-notch gold miner

Wesdome aims to build Canada’s next mid-tier gold producer. The $1.57 billion company operates two major properties: the Eagle River Complex (underground mine, open-pit mine, and a mill facility) and Kiena Complex. It has been in gold mining operations for more than 30 years, focusing on Canadian projects only.

In Q2 2021, Wesdome’s gold production grew 21% versus Q2 2020, while the cash margin increased 18% due to higher ounces sold. Because of the company’s capex at its two core properties, free cash flow went down to $9.1 million. However, the quarter’s highlight was the 445% increase in net income to $87.8 million compared to Q2 2020. This top-notch mining stock trades at $11.13 per share

The market price of gold is what drives Wesdome’s profitability. Currently, the threats to the business are the foreign exchange rate volatility, the level of inflation, and spread of new COVID cases. This top-notch mining stock trades at $11.13 per share.

Canada’s cargo airline

Cargojet was doing well in 2019 but rose to prominence in 2020 due to the global pandemic and supply chain disruptions. The $3.41 billion company dominates air cargo services in Canada. After three quarters in 2021, the company has returned to profitability with its net earnings of $65.4 million. It reported a net loss of $67.3 million in the same period last year.

Regarding stock performance, the total return in the last three years is 141.82% (34.15% CAGR). The current share price of $197.05 is a good entry point, given the -8% year-to-date loss. Market analysts recommend a strong buy and rating and project a 38% upside in 12 months. The overall return should be slightly higher if you include the modest 0.53% dividend.

Changing rankings

Ballard ranks fourth this year from second last year and 13th in the inaugural list. Wesdome placed 10th in 2021 and seventh and 19th in the previous two editions. Cargojet is 23rd in the latest list, coming from 10th and 20th before. I suppose the stocks are in most investors’ watchlists by this time.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends CARGOJET INC. and 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.

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