4 TSX Stocks With Jaw-Dropping Returns in 2021

Two energy stocks and a pair of crypto stocks have delivered enormous returns in 2021, beating the year-to-date gains of the sector and Bitcoin.

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This year, TSX’s energy sector and Bitcoin have shown resiliency, although the former didn’t swing wildly during dips, unlike the latter.  The year-to-date gains of each are now 73.88% and 96.7%, respectively. However, the gains aren’t jaw-dropping if you compare them to two energy constituents and a pair of crypto-related assets.

NuVista Energy (TSX:NVA) and Crew Energy (TSX:CR) have gained between 440% and 560% thus far. HIVE Blockchain Technologies (TSXV:HIVE)(NASDAQ:HVBT) is up 102.51%, while HUT 8 Mining (TSX:HUT)(NASDAQ:HUT) investors are content with their 320.22% year-to-date (YTD) gain.

The four stocks outperform the broader market and their respective sectors. Had you invested in year-end 2020 in any of them, you would have derived enormous returns. Only HUT 8 trades above $15, but you won’t spend more than $6.25 per share for the rest. Also, their upwards trajectories could continue in 2022, so you can consider taking positions this year-end.  

Energy high-flyers

High-flyers NuVista and Crew were never on investors’ radars until crude prices started to rebound early in 2021. The energy stocks trade at $6.19 (+558.51% YTD) and $3.06 (+446.43% YTD) per share, respectively. Their magnificent turnarounds reflect in the stock performances.

NuVista’s net loss in the first three quarters of 2020 was over $900 million. But in the nine months ended September 30, 2021, management reported $563.9 million in total revenue, a year-over-year growth of 87.1%. Notably, net income reached $151.51 million.

Like other industry players, Crew Energy benefits from rising commodity prices. According to President and CEO, Dale Shwed, the company captured value from its world-class resource because of the positive market developments. In Q3 2021, net income was $176.18 million compared to the $21.13 million net loss.

After three quarters this year, net income reached $154.39 million versus the $237.84 net loss in the same period in 2020. Moreover, adjusted funds flow (AFF) climbed 210% to $26.5 million year-over-year. Management projects its AFF in 2022 to be around $190 to $210 million.

Safer alternatives to Bitcoin

Bitcoin remains highly volatile, so be careful parting ways with your money. The price peaked at US$67,566.83 on November 8, 2021, but has fallen since. As of December 1, 2021, the crypto is down 15.6% to US$57.056.70. HIVE and HUT 8 are the next-best alternatives if you want exposure to Bitcoin.

HIVE trades at $4.84 per share, while you can purchase a HUT share for $15.59. Apart from the lower prices, the crypto stocks trade on a global stock exchange, therefore, are regulated. Also, the problem with cryptocurrencies is the lack of fundamental value. If it’s a tree, it doesn’t produce or bear fruits.

While HIVE and HUT 8 are crypto miners, investors can review or evaluate them based on the quarterly financial results. For example, HIVE‘s gross revenue from digital currency mining grew 466% in Q1 fiscal 2022 (quarter ended June 30, 2021) versus Q1 fiscal 2021. The net income of US$18.6 million during the quarter was also a record.

HUT 8, one of the pioneers in digital assets mining, achieved a record-breaking quarterly revenue in Q3 2021. Revenue growth was 774.7%, while net income was $23.37 million compared to the $900,000 net loss a year ago.

Momentum should continue

Expect the four stocks to maintain momentum heading into 2022 if the TSX shakes off its current slump.

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 has no position in any of the stocks mentioned.

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