Not all stocks on the TSX suffer losses during volatile market conditions. Some companies can thrive under harsh circumstances due to the tailwinds created by uncertainty. The S&P/TSX Composite Index has been going up and down daily as various factors continue to increase uncertainty in global financial markets.
Russia’s invasion of Ukraine on February 24, 2022, has stirred up a significant degree of volatility. As investors flee risk, many assets traditionally considered as high growth stocks are suffering massive losses by being sold off in droves.
But the volatility is not bad for all growth stocks. Suppose that you are willing to stomach the risk that comes with investing in growth stocks. In that case, you can find opportunities on the TSX, provided you know where to look.
Today, I will discuss two TSX stocks that have been performing well in recent weeks and can deliver superior returns as the uncertainty continues.
Nutrien Ltd. (TSX:NTR)(NYSE:NTR) is a $68.09 billion market capitalization fertilizer company headquartered in Saskatoon. It is the largest potash producer worldwide and the third-largest company among global nitrogen fertilizer producers. The company plays a critical role in helping people grow crops worldwide through its products.
Potash is one of the key ingredients used by growers. Russia and Belarus are the second- and third-largest potash producers after Canada. Considering the current geopolitical situation and the sanctions resulting from them, Nutrien stock could see a massive surge in demand for its products.
Nutrien stock trades for $124.00 per share at writing, and it boasts a 1.96% dividend yield. Its shares are up by over 35% year-to-date, and we could see its valuation soar further in the coming weeks.
Various commodities see a substantial surge in prices during volatile market environments. People look to safe-haven assets as a hedge against inflation and uncertainty. Gold and other precious metals are considered excellent stores of wealth during such times, and Wheaton Precious Metals Corp. (TSX:WPM)(NYSE:WPM) is a stock that can benefit from rising gold prices during uncertain market environments.
Wheaton Precious Metals stock is a $27.18 billion market capitalization precious metals streaming company headquartered in Vancouver. The company is not a traditional mining stock, but it stands to benefit significantly when gold prices rise.
The company offers upfront financing to precious metal mining companies in exchange for getting access to their products at a discounted rate. As gold prices look set to rise further due to the current geopolitical climate, it might make for a good investment.
WPM stock trades for $60.29 per share at writing, and it boasts a 1.27% dividend yield. It is up by 13.71% year to date and looks well-positioned to post further gains.
It is crucial to understand that no investment comes without capital risk. Identifying the companies that can thrive under certain circumstances impacting the market right now and how things could shape up for them in the future can help you find investments that boast the most promise.
Nutrien stock and Wheaton Precious Metals stock are two such assets that could showcase significant strength and deliver stellar shareholder returns in the current environment.