Deadline: 3 TSX Stocks I'd Buy Before Earnings

Deadline: 3 TSX Stocks I’d Buy Before Earnings

With earnings coming in for these three TSX stocks, there is an opportunity to be had to create huge returns in the near future.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published March 1, 2023 11:00 am EST

| More on: CPXKXSNFI

Earnings continue to come out, and while some may see shares drop, there are others that I would pick up as the deadline looms closer. This week, there are several TSX stocks that are coming out with earnings reports. And I’d pick them up now before they hit.

Hourglass projecting a dollar sign as shadow — Source: Getty Images

Kinaxis

Kinaxis (TSX:KXS) has earnings coming out on March 2. The supply-chain management company has narrowly missed the last two earnings calls and yet continues to make partnerships that investors should be seriously interested in.

The digital supply company continues to focus on enterprise-level companies around the world. It’s a TSX stock with a diverse portfolio, with not one company taking up more than 5% of its revenue. Because of this, it’s a safe long-term option with contracts lasting years.

Shares are up about 2% in the last year and up 6% in the last month alone. It’s now one of the few tech stocks analysts believe will actually provide positive earnings. While still expensive, there is a potential upside of 9.5% as of writing to reach 52-week highs. Though analysts believe it will climb even higher in the next year.

Capital Power

Capital Power (TSX:CPX) releases earnings on March 1. This is yet another company that seems to be trading in relatively expensive territory, but I would still consider it as earnings come in. The company continues to beat out quarter after quarter, and also provides a dividend yield at 5.42% as of writing.

Beyond this, it’s a TSX stock in the renewable energy field. This is significant, as it provides a growth opportunity for investors in the future. Yet right now, that opportunity is also available. Capital Power stock continues to create deals, partnerships, and acquisitions that are set up for years and sometimes decades!

With that in mind, I would certainly consider picking this up with other TSX stocks, as earnings come in. Shares are up 17% in the last year, though down 7% year to date. It now offers a 24% potential upside to reach 52-week highs.

NFI Group

Finally, NFI Group (TSX:NFI) also has earnings coming out on March 1, and the company recently hit headlines. It was all positive, with Vice President Kamala Harris coming to visit the company. While this could be brushed off as some public relations stuff, don’t brush this off.

NFI stock is involved with creating electric buses, and it continues to expand the use of these buses around the world. With the visit of Harris, it shows that the White House is backing this transition. And where the White House goes, money follows.

So, as earnings come in, definitely pay attention to NFI stock. It narrowly missed last quarter’s earnings and remains a strong buy recommendation by analysts. Shares are down 47% in the last year and down 11% in the last month. It now has a potential upside of 93% to reach 52-week highs!