3 Stocks Primed for a December Bump

The share prices of three exciting stocks are likely to spike in December 2021 and deliver superior gains to would-be investors.

| More on:

The holiday season is an opportunity to scoop some of the best stocks that experience bumps, usually in December. Three TSX stocks are the top prospects if you want to take advantage and realize superior gains. Maple Leaf Foods (TSX:MFI), Spin Master (TSX:TOY), and Aritzia (TSX:ATZ) should be in your buy lists.

Essential business

Maple Leaf isn’t a typical seasonal stock, because providing food is an all-year-round business. It’s a Canadian historic food company with the motto, “Raise the Good in Food.” This consumer discretionary stock also appeals to income investors for its decent 2.48% dividend. Based on analysts’ forecasts, the share price of $29.06 could climb 37.16% to $39.86.

The $3.7 billion carbon-neutral company aims to become the most sustainable protein company on the planet. Besides the Maple Leaf, it carries other leading or famous brands, like Schneiders and Greenfield Natural Meat. Despite the material headwinds in the pandemic, Maple Leaf fared well, as food is an essential service.

In Q3 2021, total sales increased 12.43% versus Q3 2020, although net earnings dropped 32.58% to $44.5 million. After three quarters in 2021, Maple Leaf’s balance sheet remains strong. Management expects to end the year with single-digit sales growth.

Children’s top sandbox

Spin Master outperforms the TSX (+21.31%) thus far in 2021 with its 66.18% gain. The $4.93 billion children’s entertainment company distributes its products in more than 100 countries. It boasts a diverse portfolio of innovative toys, entertainment franchises, and digital games. Award-winning PAW Patrol is among the most popular brands globally.

Christmas shopping isn’t in full swing yet, and Spin Master is doing well already in 2021. In the nine months ended September 30, 2021, revenue growth versus the same period in 2020 was 25%. Its net income jumped 56% to US$135.4 million year over year. The financial results indicate the progress of the company’s desire to develop evergreen entertainment franchises.

Management launched Spin Master Ventures, its investment arm, in October 2021. The initial US$80.8 fund should help accelerate growth in all the company’s divisions. Spin’s co-founder and board chairman Ronnem Harrary said, “Spin Master Ventures will establish us as the partner of choice for entrepreneurs looking for capital to start and grow a business in the kids’ space.”

Accelerating momentum

Aritzia investors didn’t lose in 2020, despite the fallout from the pandemic. The stock delivered an overall return of 35.4%. In fiscal 2021 (year ended February 28, 2021), it reported 12.5% and 78% drops in revenue and net income versus fiscal 2020.

However, things are turning around for this $5.7 billion design house and fashion boutique company and its investors. Year to date (six months ended August 29, 2021), net revenue soared 91.6% to $597 million compared to the same period in fiscal 2021. Net income reached $57.75 million.

Brian Hill, Aritzia’s founder, CEO, and chairman, said the outstanding performance in Q2 fiscal 2022 reflects the accelerating momentum across geographies and channels. He adds that expansion in the U.S. should drive growth. Meanwhile, current investors enjoy a 100.47% year-to-date gain. The share price is $51.70 if you invest today.

Exciting buys

There are roughly four weeks left before the curtain closes in 2021. Maple Leaf, Spin Master, and Aritzia are exciting and profitable buys this December.

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 Spin Master Corp.

More on Investing

dividend growth for passive income
Dividend Stocks

How Canadians Can Transform $10,000 Into Steady Passive Income for 2025

Investing in TSX dividend stocks such as Exchange Income should help Canadians derive outsized gains over the next two years.

Read more »

Income and growth financial chart
Tech Stocks

Why Celestica Stock Jumped 10% Last Week

Celestica stock surged 10% after earnings, so let's get into why.

Read more »

Nickel ore is mined from the ground.
Metals and Mining Stocks

The Smartest Small-Cap Gem to Buy With $1,500 Right Now

Here's why The Metals Company (NASDAQ:TMC) is a top option for long-term investors seeking a speculative growth name right now.

Read more »

grow money, wealth build
Dividend Stocks

How I’d Invest $7,000 in My TFSA for Capital Preservation and Growth

To grow your TFSA, consider investing in a mix of GICs, market-wide ETFs, and quality stocks via a balanced approach.

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

Best Dividend Buy: 2 Canadian Stocks for May 2025

Two Canadian stocks are the best dividend buys in May 2025 for their low-risk profiles and payout stability.

Read more »

Dividend Stocks

Monthly Income Alert: 2 Canadian Dividend Stocks Yielding Over 6% Today

Canadian investors should consider owning monthly dividend stocks such as Whitecap and CT REIT to generate passive income.

Read more »

Silver coins fall into a piggy bank.
Energy Stocks

This Overlooked Energy Stock Down 43% is a Dividend Investor’s Dream

Peyto is a natural gas stock with a rapidly growing dividend, strong cash flows, and a strong position in the…

Read more »

sale discount best price
Dividend Stocks

Is This Correction Your Chance? The Top 3 Canadian Dividend Stocks on Sale Now!

These dividend stocks all had recent analyst upgrades and remain stellar options during a market dip.

Read more »