Even with a global pandemic continuing to wreak havoc, there’s plenty of optimism in the stock market today. The S&P/TSX Composite Index is on pace to end an incredible year at a gain above 20%.
A new COVID variant caused a selloff in November, but the market is showing its strength with a strong recovery. The market is still trading below all-time highs but that may change in the last week of the year.
Heading in 2022, there’s no reason why this bull run couldn’t continue onwards. The eventual reopening of the country could send the market soaring even higher.
Now’s the time to be loading up on Canadian stocks. Investors should have these two top picks at the top of their watch lists next year.
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goeasy
goeasy (TSX:GSY) has quietly been one of the top-performing stocks on the TSX in recent years. Shares are up a market-crushing 80% year to date and more than 600% over the past five years. The Canadian stock is also a 30-bagger over the past decade.
For a financial services company, goeasy has delivered exceptional growth to its shareholders. And ahead of the country’s eventual reopening, I’m not expecting the market-beating growth to end anytime soon. The country’s reopening, followed by an increase in consumer spending, could very likely lead to an increase in demand for goeasy’s services.
goeasy provides all kinds of different loans to Canadian consumers, with home and auto being two of the company’s main business categories.
Considering goeasy’s track record of growth, the Canadian stock is trading at bargain prices. Shares are down close to 20% from all-time highs and are valued at a very reasonable forward price-to-earnings multiple of 15.
Brookfield Renewable Partners
It definitely has not been a great year for renewable energy stocks. After a dominating performance in 2020, many leaders in the space are largely trailing the market’s returns this year. Not only that, but many of those companies are even trading at losses in 2021.
Shares of Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) are down 20% year to date. Still, the Canadian stock is up a market-crushing 110% over the past five years.
And that’s not even factoring in the company’s impressive dividend. At today’s stock price, the Canadian stock’s annual dividend of $1.55 per share yields above 3%.
The rise in demand for renewable energy is a trend that we’ve been witnessing for a few years now. It’s also a trend that looks like it will be continuing for the foreseeable future. That’s why I’d urge any long-term investor to own at least one green energy company in their portfolio.
At a $12 billion market cap, Brookfield Renewable Partners is a Canadian leader in the growing renewable energy space. It also boasts a strong international presence, offering its global customers a range of different renewable energy solutions.
Investing in Canadian stocks in 2022
For anyone looking to earn market-beating growth next year, these two Canadian stocks are solid choices. Both companies are riding strong tailwinds that I firmly believe will lead to many more years of outstanding gains.
With both stocks trading at discounts today, investors will want to act fast. It won’t be long before these two companies are back to all-time highs.
