Business & Investment

Forget the stock market crash: Here are the three top TSX stocks to buy in January 2021

Many fear that valuation expansion and uncertainty can lower the market as stocks continue to soar. I’m hoping for a healthy fix in the market, but I don’t think it’s likely to crash in 2021.

On the contrary, 2021 could be a promising year, especially in terms of corporate profits. Large-scale vaccine distribution and increased economic activity can help boost demand, help companies make profits and report positive cash flow.

Despite uncertainty, a fundamentally strong upward trend in stocks may continue, Expanded highs in 2021..

Lightspeed POS

Lightspeed POS (TSX: LSPD)(NYSE: LSPD) 2020 was an exception. Stock prices plummeted as the market sold out, but soared more than eight times from their March lows. In particular, the company achieved approximately 129% growth over the past year and was able to maintain this recovery in 2021 against the backdrop of strong industry trends.

The company offers an omni-channel payment platform, which is growing as consumer demand grows and SMEs are shifting from traditional sales models to e-commerce platforms.

The structural shift to a multi-channel sales model has provided Lightspeed with multi-year growth opportunities. We expect to see strong organic growth in 2021 due to rising demand. On the other hand, recent acquisitions have the potential to grow in size, expand our customer base and geographic reach, and open up new growth opportunities.

We believe that long-term tailwinds, ongoing innovation, and gradual acquisitions provide a solid foundation for Lightspeed to achieve massive growth.

Good food market

Good food market (TSX: FOOD) Over the last three years, we have consistently outperformed a wide range of markets and provided exceptional returns. In particular, Goodfood Market inventories have skyrocketed by nearly 266% over the past year. Canada’s leading online grocery companies are benefiting from the growing demand for consumers as they shift to e-commerce platforms.

The blockade in the pandemic has accelerated demand for Goodfood’s e-commerce platform, a trend that is due to its powerful delivery capabilities, rapid consumer shift to e-commerce, and ease of shopping. I think it will continue. The Goodfood Market continues to add new subscribers quickly, with over 306,000 active subscribers on its platform.

Margins can be increased by adding new customers, expanding shipping capabilities, and increasing order size. On the other hand, a positive long-term trend and a strengthened sales footprint may support an increasing inventory trend.

goeasy

goeasy (TSX: GSY) Is Necessities In your portfolio, thanks to its strong fundamentals and large addressable market. Inventories have increased by only 42% over the past year, but have seen solid growth over the last few years.

Non-prime lenders’ earnings are consistently increasing at a high double-digit rate. Meanwhile, the resumption of the economy and the recovery of demand are expected to drive the loan portfolio and support revenue growth. goeasy is also expected to benefit from product expansion and a larger footprint.

Its high-quality earnings and strong cash flow support higher dividend payments. The company has raised dividends over the last six years, but the continued earnings momentum allows it to continue to increase dividends in 2021.

The company’s strong fundamentals and strong dividend payments make it a stock of the highest value and income.

Final idea

These stocks have recently recovered, but I look even better. The continued strength of organic businesses, additional acquisitions, and favorable industry tailwinds provide a strong foundation for future growth.

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Stupid contributor Snehanahata There are no positions in any of the listed stocks. Motley Fool owns a stake in Lightspeed POS Inc. The Motley Fool recommends the Goodfood Market.

Forget the stock market crash: Here are the three top TSX stocks to buy in January 2021

https://www.fool.ca/2021/01/05/forget-a-stock-market-crash-here-are-3-top-tsx-stocks-to-buy-in-january-2021/ Forget the stock market crash: Here are the three top TSX stocks to buy in January 2021

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