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There is nothing quite like Black Friday shopping. The retail holidays have great deals on the products you might want – and just in time for Christmas, nothing less. While this doesn’t quite match the deals you’ll find during Boxing Week, there’s no doubt that you can find some great deals on Black Friday.
And what’s true for retail is true for stocks. This year, Canadian stocks are on the rise, thanks to the economic recovery from COVID-19. Numerous TSX stocks remain cheap despite the gains. Others are not that cheap but offer really explosive growth. In this article, I’ll explore three TSX stocks that are on my personal Black Friday shopping list.
Shopify (TSX: SHOP) (NYSE: SHOP) is a stock that I have watched for a long time. I like the business, but I find the share price a bit high. Like I always said, I would buy it if it was less than $ 1,500. SHOP is certainly not cheap, but it is experiencing rapid growth. In its most recent quarter, revenues rose 46% and GAAP EPS climbed to $ 9, by far the highest profit figure on record. From the second quarter of 2020 to the first quarter of 2021, SHOP recorded a legendary growth streak, with four consecutive quarters of revenue growth exceeding 90%. The company has profited from the COVID-19 pandemic as store closings have caused an increase in online shopping. Growth has slowed considerably since then, but SHOP remains an attractive purchase at the right price.
The Toronto-Dominion Bank (TSX: TD) (NYSE: TD) is a TSX stock that I already own and may buy more in the future. It’s a cheap bank stock that trades at just 10 times earnings. It also has a dividend yield of 3.4%. Like many TSX banks, TD has rebounded this year as the risk factors for COVID-19 began to subside. Thanks to the economic recovery from COVID-19, TD managed to generate 56% profit growth in its final quarter. This is, of course, 56% growth from a very low base, but it is still encouraging that the bank is recovering. Additionally, TD’s long-term (five-year) CAGR earnings growth rate (13.1%) is excellent for a bank. So this is a solid financial game with a lot of potential for dividends and capital gains.
Last but not least, we have Canadian National Railway (TSX: CNR) (NYSE: CNI), another stock that I already own and could buy more of. Like banks, railways are recovering from the damage they suffered from COVID in 2020. In its final quarter, CNR delivered:
- $ 3.59 billion in revenue, up 5%.
- $ 1.34 billion in operating income, down 2%.
- $ 2.37 in diluted EPS, up 72%.
- $ 1.52 in adjusted diluted EPS, up 10%.
As you can see other than operating profit they were all solid indicators. And they should continue to be strong in the future. Railways provide economically essential goods like grain, coal, and oil, so they tend to grow with the economy. By improving operational efficiency, they can grow much more than gross domestic product. Over the years, CNR has generated modest but steady returns for investors. He should continue to do so.