The S&P/TSX Composite Index rose to over 25,000 in intra-day trading on November 12, 2024. While Canada’s primary benchmark keeps posting new record highs, some TSX stocks continue to soar higher with no signs of losing steam.
As of this writing, Propel Holdings (TSX:PRL), Aecon Group (TSX:ARE), and Hut 8 (TSX:HUT) handily beat the broad market. The first two are dividend payers, while the third is a crypto-related stock. These rising stocks have delivered enormous gains despite strong headwinds. Their prices could rise to $50 or above sooner than later.
Best of finance and technology
Propel Holdings has become popular thanks to its online lending platform powered by proprietary artificial intelligence (AI). The $1.3 billion financial technology company provides credit solutions primarily to consumers with limited or without access to credit. It commits to credit inclusion and profitable growth.
The business is thriving, evidenced by the record Q3 2024 financial results. In the three months ending September 30, 2024, revenue and loan receivables increased 41% year-over-year to US$117.2 million and US$333 million, respectively. Net income jumped 70% to US$10.5 million compared to Q3 2023.
Its CEO, Clive Kinross, said, “Propel is at an exciting inflection point.” He added that the fintech delivered on its growth objectives: geographic expansion, serving more consumers, and strategic acquisitions. At $36.36 per share, PRL is up 185.3% year-to-date and pays a modest 1.6% dividend.
Resilient business model
Aecon is just a little behind Propel. At $28 per share, current investors delight in the 121.4% year-to-date gain and partake in the decent 2.7% dividend yield. The $1.8 billion infrastructure company caters to private and public sectors and wins projects or contract awards in the infrastructure, energy, and mining sectors. Allied services include development, financing, and project management.
The competitive advantage is in the diversified and resilient business model. Aecon also benefits from the favourable demand environment. Notably, Canada’s infrastructure development industry is seasonal. The pattern is less work in early spring and winter than in fall or summer.
Management said 2023 was a transformative year. Besides capturing unlocked value, Aecon de-risked its portfolio, which drove business growth and strengthened the balance sheet. In the 12 months ending December 31, 2024, revenue declined 1.1% to $4.6 billion versus full-year 2023, while profit climbed 432.6% year-over-year to $161.9 million – enough said.
Cryptos are alive!
The cryptocurrency market is alive, and Bitcoin (BTC-US) is surging following the U.S. presidential elections. Market observers believe the incoming administration is supportive of cryptos. If you want exposure to this risky market, Hut 8 is the logical choice.
This $3.2 billion company is a Bitcoin miner and offers managed services for energy infrastructure development. At $33.27 per share, the year-to-date gain and trailing one-year price return are 88.2% and 115.3%. In the last six months, HUT has gained +203.6%.
The crypto stock’s upward trajectory is superb for pro-crypto investors, but not risk-averse investors. Sharp price fluctuations are common in the space, so the advice is to invest at your own risk. Bitcoin suddenly crashed without warning before, and it could happen again.
Better buys
Propel Holdings and Aecon Group should be better buys than crypto-related investments. Hut 8 is hot but remains risky for regular investors.
