After seeing massive volatility in the last few weeks, it is all right to feel wary. But such markets bring a host of opportunities for discerning investors. So, if you are sitting on some extra cash, here are three TSX stocks that could make a fortune in the long term.
B2Gold
After months of subdued performance, the yellow metal began shining amid the geopolitical tensions lately. Investors might continue to turn to safe havens like gold in the near future as uncertainties linger. Canadian miner B2Gold (TSX: BTO)(NYSE:BTG) could be a smart pick to play the gold rally in these times.
A $5.6 billion, B2Gold operates three high-quality mines in Mali, Namibia, and the Philippines. It aims to produce nearly one million ounces of gold in 2022. Current rallying gold prices should boost its Q1 2022 earnings. If the trend continues, gold miners could see handsome earnings gains as they saw in 2020.
B2Gold has a strong balance sheet with a net positive cash position. Apart from above-average financial growth, the company pays a stable dividend that yields 3.8%.
BTO stock is currently trading at $5.4 and has gained 17% so far this year. Moreover, it is trading at 10 times its earnings, which indicates a remarkable discount relative to peers.
Nuvei
Canadian fintech stock Nuvei (TSX: NVEI)(NYSE:NVEI) looks attractive at current levels of $65. Though the stock has had a massive sell-off in the last six months, these levels have acted as crucial support. Thus, patient investors can consider entering at these levels for decent gains in the long term.
Nuvei provides payment technology solutions to its merchants in North America, Latin America, and Asia-Pacific. It caters to merchants across various industries like e-commerce, cryptocurrency platforms, regulated sports betting, etc.
Nuvei stock saw encouraging growth for the most part of last year, driven by handsome financial growth. It will report Q4 2021 earnings next week. How those numbers drive the stock remains to be seen.
Nuvei serves a large addressable market and has huge growth potential. Despite the decent correction, NVEI stock does not look significantly cheap. However, solid earnings growth and discount against its 52-week high could entice aggressive buyers.
Vermilion Energy
Even after doubling since last year, energy stocks continue to look attractive. Not just because of the ongoing crude oil rally, but this could actually be the start of a long-term bull trend.
I think Canadian oil and gas producer Vermilion Energy (TSX: VET)(NYSE: VET) looks attractive at its current levels. The stock has gained 210% in the last 12 months and is trading at five times its earnings.
Vermilion has $4 billion in assets in North America, Europe, and Australia.
The company intends to repay debt with the excess free cash flow. Importantly, the current oil price strength gives sufficient room for energy companies to repay debt and for dividends as well. So, investors might see shareholder payouts rising if energy commodities continue to trade strongly.
Improving balance sheet strength, strong earnings prospects, and soaring crude oil prices place Vermilion on a solid footing. Although the stock is trading at three-year highs, there still seems to be excellent value left for long-term investors.
