There are many great opportunities on the TSX, and they don’t always come from the loudest or most followed stocks. Sometimes, they are the stocks that nobody’s talking about. The growth stories that are building momentum in the background.
Those stocks that nobody’s talking about represent a unique opportunity for investors, provided they discover and invest in those stocks.
Here’s a look at four of those quiet movers to consider buying today.
Source: Getty Images
Option #1: The space-tech powerhouse
The first stock that nobody’s talking about is MDA Space (TSX:MDA). For those who are unfamiliar with the stock, MDA is a space stock that builds satellite systems, robotics, and mission-critical space infrastructure used by both governments and commercial operators.
The demand for both satellites and space-based communications has grown in recent years, and that’s led to MDA’s backlog growing, too.
By way of example, MDA Space is a mission partner for NASA’s Artemis program. The company is also working with NASA on the Lunar Dawn rover program.
Another example is the Globalstar satellite constellation. MDA is tasked as the prime contractor in building 50 next-generation LEO satellites.
Even if nobody’s talking about MDA right now, the company is active and working on a multitude of projects. And as those global investments in space infrastructure expand, MDA is positioned to benefit from a wave of these and other new projects.
Option #2: Building on pent-up automation demand
Another investment that nobody’s talking about is ATS Corporation (TSX:ATS). ATS is an automation company that designs, builds and installs automated manufacturing systems.
ATS serves a wide range of sectors that includes consumer products, clean energy, electric vehicles, and medical devices.
The opportunity for prospective investors here is the shift by businesses around the world to embrace automation as a way to reduce costs and improve efficiency.
As a result, ATS has a global portfolio footprint that includes North America, Europe, Asia, and Oceania. The company has a growing backlog measured in the billions.
But why is it that nobody’s talking about ATS? It doesn’t have the appeal of MDA or a flashy dividend. It’s a boring but profitable industrial company that has massive growth potential.
Option #3: Stability from clean energy
Usually, the stocks that nobody’s talking about are boring. It’s hard not to think about a utility when mentioning boring, so it’s no coincidence the next pick is a utility.
Alberta-based Capital Power (TSX:CPX) is a unique pick. Capital Power is a utility stock, meaning that it has a portfolio of regulated assets that generate stable cash flows. Those cash flows, in turn, allow the company to invest in growth and pay a handsome dividend.
That dividend carries an attractive 4.1% yield as of the time of writing.
But what makes this a stock that nobody’s talking about right now? Capital Power’s portfolio of natural gas, wind, solar, and coal-to-gas conversion assets are expanding.
The company’s growing emphasis on renewables is intriguing, while its utility backbone offers a defensive moat that every portfolio needs.
Option #4: Strong fundamentals, yet still undervalued
The final stock that nobody’s talking about right now and should be is Dream Industrial REIT (TSX:DIR.UN). Dream is an industrial REIT, which translates into logistics, distribution centres, and light industrial assets. This means that Dream benefits directly from e-commerce and supply-chain demand without retail noise.
Interestingly, Dream is shifting some of its focus towards data centres as a value-add to its core industrial focus. This positions the REIT as a forward-thinking option that is evolving with the market.
The company’s portfolio includes assets in Canada, the U.S. and Europe. Dream offers investors a monthly distribution that pays out a yield of 5.1% as of the time of writing.
The stocks nobody’s talking about that you should buy
No stock is without risk, and that includes even the most defensive picks on the market. The four stocks mentioned above each offer unique growth avenues along with some defensive appeal.
Investors who are willing to expand their portfolios should consider adding a position in one or more of these stocks to any larger, well-diversified portfolio.
