2 Stocks Primed for a Huge December

These two TSX stocks could set you up for massive gains this month after declining from soaring heights.

| More on:
stock analysis

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

There is a market downturn underway, as the S&P/TSX Composite Index is down by 4.62% at writing from its November 12, 2021, levels. Despite the significant decline in the last few weeks, the Canadian benchmark index is up by 18.45% year to date after a year full of massive gains.

At writing, the index is back up by 1.45% from its December 1, 2021 low, and investors seeking Canadian growth stocks might have a more hopeful outlook about allocating their investment capital. Today, I will discuss two TSX stocks that have been under significant pressure for some time now but could be well positioned to provide you with massive returns through capital appreciation.

Remember that there is an inherent risk involved in investing in any growth stock, but these two equity securities could be worth having on your radar as we move closer to 2022.

Goodfood Market

Goodfood Market (TSX:FOOD) is a stock worth keeping an eye on right now. The meal-kit company has not had a good year on the stock market during 2021. At writing, it is trading for $4.37 per share, and it is down by over 62% year to date. However, it might be a good stock to pick up at its current levels.

Several factors impacted its performance on the TSX this year, including supply chain difficulties and rising labour and food prices due to inflation rates hitting their highest figures in 18 years in October. Reopening economies and fewer lockdowns also led to reduced revenues, pushing its share prices further down.

However, analysts expect the stock to outperform the broader market and have set a target price of more than twice its share price at writing. The success of its new on-demand services will play a major role in whether it could rally on the stock market soon.


Bombardier (TSX:BBD.B) is a $4.14 billion market capitalization Canadian business jets manufacturer, and it looks well positioned to thrive, as the airline industry has seen improving conditions. The airline company received a bailout from the Canadian government before the pandemic was even in the picture. It has since focused on its more profitable ventures instead of carrying forward its less-lucrative segments.

The company’s latest earnings report was impressive. Bombardier stock generated $1.4 billion in revenues through its business aircraft manufacturing business, up by 17% from the same period last year. Fewer travel restrictions and higher vaccination rates might make things even better for the company. However, there is a degree of risk involved with the new COVID-19 variant that could be challenging for the company.

At writing, Bombardier stock is trading for $14.07 per share. Provided that economies keep reopening, it could set you up for significant wealth growth through capital gains.

Foolish takeaway

Goodfood Market stock and Bombardier stock might be well positioned to provide you with significant investment returns through capital gains as the year inches closer to an end. However, it remains to be seen how the advent of another contagious variant of the COVID-19-causing coronavirus might impact global equity markets in the coming weeks.

If all goes well, and global economies can keep it under control, December could turn out to be a massive month for investors who hold these two companies in their investment portfolios. If you choose to invest in the companies, remember that there is a degree of capital risk involved due to potential headwinds caused by the pandemic.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Goodfood Market Corp.

More on Investing

potted green plant grows up in arrow shape
Stocks for Beginners

1 Canadian Growth Stock That Could Double Your Money in an Economic Recovery

The market downturn is an opportunity to lock growth during the economic recovery. This stock is a blend of value,…

Read more »

Bank sign on traditional europe building facade

RRSP Investors: Here’s the Best Canadian Bank Stock for Your Buck

Bank of Montreal (TSX:BMO)(NYSE:BMO) stock is getting far too cheap to ignore after the latest spill in the big Canadian…

Read more »

analyze data
Dividend Stocks

2 Safe Dividend Stocks That Could Help You Fight Inflation

A dependable stream of passive income is one way to help offset rising inflation rates. Here are two top dividend…

Read more »

edit Person using calculator next to charts and graphs
Dividend Stocks

Stay Invested in a Recession: Increase Positions in 2 Value Stocks

The suggestion of market analysts is to increase positions in two value stocks if you want to stay invested amid…

Read more »

Diagonal chain made of zeros and ones. Cryptocurrency and mining.

Is This the End for Crypto?

Bitcoin (CRYPTO:ETH) is in the midst of its worst crash in years. Is this the end?

Read more »

Business success with growing, rising charts and businessman in background

4 Growth Stocks That Could Make You RICH by 2030

Canadians should take advantage of discounted growth stocks like goeasy Ltd. (TSX:GSY) and others in this summer bear market.

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Dividend Stocks

3 Dividend Stocks to Buy as Inflation Surges in Canada

If you're worried about how surging inflation may impact your portfolio, here are three of the best dividend stocks to…

Read more »

You Should Know This
Dividend Stocks

High Inflation: The Good and the Bad for Canadians

Consider tucking away some of your long-term savings in quality dividend stocks like Brookfield Infrastructure in this correction.

Read more »