It may be an understatement to say that the past couple of years haven’t been the greatest for the stock market. Fortunately, all bear markets eventually end, giving bull markets their time in the sun. It’s very important to keep track on whether the stock market is bullish because investors can capitalize on different stocks in those conditions. For example, growth stocks perform very well in bull markets, but terribly during downturns.
In this article, I’ll discuss three stocks to buy if you’re anticipating a bull market.
This is my favourite TSX stock
If you think a bull market is just around the corner, then an investment in Shopify (TSX: SHOP) may be a good idea. During the last bull market, Shopify stock soared. It gained more than 6,000% over six years. Along the way, Shopify also became Canada’s largest company by market cap. Unfortunately, the recent bear market caused this stock to plummet. Although Shopify stock has gained more than 25% this year, the stock still sits more than 70% lower than its all-time high.
I firmly believe that Shopify could perform very well in the next bull market thanks to continued growth, and its leadership positioning, within the global e-commerce industry. Shopify is uniquely positioned, relative to its peers, because it has managed to establish a very formidable enterprise partnership network. That allows Shopify merchants to put their stores in front of as many consumers as possible.
Another great growth stock to consider
If you’re bullish on the ecommerce industry, then consider buying shares of Nuvei (TSX: NVEI). This company provides a platform that merchants can use to consolidate their sales transactions. Using its platform, merchants can accept in-store, mobile, online, and unattended payments. That breadth in Nuvei’s offering is what separates it from other payment processing companies.
Nuvei shareholders have been on quite a roller-coaster ride since its initial public offering (IPO). The stock opened its days on the TSX as the largest tech IPO in Canadian history. It then continued to impress over the next year by gaining more than 200%. Unfortunately, the stock has since suffered, being hit by a short report and the current economic conditions. In its most recent earnings presentation, the company reported that its revenue continues to grow. I believe brighter days are ahead for Nuvei.
Invest in this renewable utility company
Finally, investors should consider adding Brookfield Renewable (TSX: BEP.UN) to their portfolio. This company is one of the largest producers of renewable utilities in the world. Its portfolio consists of assets with a production capacity of 25 gigawatts (GW). Brookfield Renewable also boasts a development pipeline that could add an additional 110 GW of generation capacity, further cementing its position atop the renewable utility industry.
Brookfield Renewable stock has gained more than 16% this year, thanks to an economic environment that continues to improve. Investors could still pick up shares at a massive discount, however, as the stock sits more than 30% lower than its all-time high.
