October 2021 revealed alarming news for Canadians, as the country reported its highest inflation rate in almost two decades. The energy crisis that is gripping the world and the advent of another contagious variant of the COVID-19 virus combined with other factors led to the inflation rate rising to 4.7%.
Depending on how the situation changes with the pandemic in light of recent developments, traditional energy prices might still be possible to surge to new all-time highs because of a disparity between demand and supply worldwide. The renewable energy industry is growing, but it is not yet at levels that match demand.
If you’re just starting investing, it might be a challenging time to enter the stock market. However, the TSX boasts several names that could possibly benefit from rising energy prices and the broader situation with the pandemic.
Today, I will discuss two popular TSX stocks that could be worth keeping an eye on right now.
Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) has benefitted greatly from the increasing digitization. The company has been on a rough run in recent weeks due to negative investor sentiment about Lightspeed Commerce. A short-seller has accused Lightspeed Commerce of inflating its performance metrics, particularly its addressable market, customer count, and average revenue per user.
Lightspeed Commerce’s management vehemently denies the accusations. However, the short-seller report has done its job of shaking investor confidence in the company. At writing, Lightspeed stock is trading for $61.66 per share, and it is down by a staggering 61.20% from its September 2021 levels.
The growing number of COVID-19 cases might present another push to the digital economy, possibly providing Lightspeed Commerce with the boost it needs to overcome its current challenges.
Enbridge (TSX:ENB)(NYSE:ENB) and its peers in the traditional energy industry have significantly benefitted during 2021. The reopening of economies led to a surge in energy demand without the supply to match. Rising energy prices have resulted in rising inflation rates, and they might reach 5% by 2022.
Enbridge stock has been through a similar situation in 2003 when increasing energy prices caused inflation rates to rise. The move saw Enbridge stock surge through to the next year. We might see a similar situation in the coming months. Enbridge’s pipeline network will likely play a crucial role in transporting natural gas and oil in North America, especially during the peak winter months.
At writing, the stock is trading for $47.87 per share, and it boasts a juicy 6.98% dividend yield that you could lock into your portfolio today.
Lightspeed Commerce stock and Enbridge stock look attractive at current levels. However, the Christmas month might bring about some challenging scenarios that could lead to more short-term trouble for investors holding these equity securities in their portfolios. Provided that you can stomach the volatility, Lightspeed stock and Enbridge stock could provide you with significant long-term shareholder returns when things return to relative normalcy.