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.

Christopher Liew, CFA

Christopher is a CFA Charterholder and a former financial advisor at RBC.

Published December 3, 2021 1:07 pm EST

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.

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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.