Do you have 1,000 dollars? 3 Top TSX Stocks to Buy Right Now
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TSX Stocks as a whole are up nearly 30% over the past 12 months. As markets linger around all-time highs, stock valuations will play a crucial role going forward. Reasonably priced stocks are likely to continue to rise in 2021. Here are three top TSX stocks that offer decent upside potential.
Canada’s fast growing fintech company nuvei (TSX:NVE) reported another strong quarterly performance on May 10th. Revenue rose a whopping 80% year over year to $149.9 million. The company posted its best quarterly growth yet, driven by a strong contribution from its e-commerce business.
Nuvei, an $11 billion payments processing company, went public last September and has since returned 80%.
Barring stronger quarterly earnings, Nuvei issued an upbeat guidance for 2021. The company now expects revenue of $610 million to $640 million in 2021. That points to steep annual revenue growth of 67%.
Nuvei appears to be on a takeover spree. It announced the acquisition of Simplex for $250 million last week. Simplex provides fiat infrastructure to the cryptocurrency industry. Last month, Nuvei announced the acquisition of Mazooma, a US-focused sports betting payment platform provider.
Nuvei offers remarkable growth prospects with its organic and recent inorganic growth. The stock could well rally to $100 on recent acquisitions, strong quarterly performance, and upbeat guidance.
Algonquin Power & Utilities
In addition to growth, you should also have defensive stocks in your long-term portfolios. Consider top utility stocks Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN). It yields 4.3% and pays ever-growing dividends.
The utility derives a large portion of its total revenue from regulated operations, which provides earnings and dividend stability. Algonquin generates nearly 30% of its total revenue from renewable assets.
Utilities are recession-resistant stocks and offer shareholders stable return potential in almost every market. Even in economic downturns, their low-risk operations generate visible revenues that ultimately boost investors’ dividends.
AQN stock has returned just 6% over the past 12 months. Over the long term, however, it has significantly outperformed the broader markets. Over the past decade, AQN has returned 525% while TSX stock has returned 50% overall.
Air Canada (TSX:AC) The stock has traded subdued over the past few weeks. However, hopes of a lifting of travel restrictions could push the stock higher. 39% of the Canadian population has received at least one dose to date. In the US, the figure is 35%. Buoyed by widespread vaccination and strong airline demand, Canada may soon ease its air travel restrictions.
AC stocks could rally in this case, which will ultimately help start the earnings recovery and minimize cash burn. Air Canada’s net cash burn for the first quarter of 2021 was $1.3 billion. While cash burn appears remarkably high in absolute terms, it is much lower than other global companies.
TD Securities updated Air Canada stocks amid hopes for normal travel patterns. It has given AC stock a price target of $30 for the next 12 months, which represents a 20% upside potential.
Recovery prospects have improved following the Canadian government’s soft loans. Air Canada’s leading market share, operational efficiencies and disciplined cost management could result in a relatively faster post-pandemic recovery.