Business & Investment

Three Top TSX Stocks to Buy in 2022

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TSX rose slightly and closed at 21,236.50 on the first trading day of the year. However, despite the high trading volume on January 4, 2022, many investors continue to look for the top stocks of the year. If you have a limited budget TransAlta Renewables (TSX: RNW), Absolute software (TSX: ABST)(NASDAQ: ABST), When cascade (TSX: CAS) It is a price-friendly stock that can be scooped up this month.

All three shares are trading for less than $ 20 per share, but decent Dividend yield.. In addition, prices could rise in 2022, which could lead to higher overall earnings.

Growth oriented

TransAlta in the renewable energy sector was not offered in 2021 (-9.92%), although clean energy companies rebounded this year. The $ 499 million company boasts operational and highly contracted renewable energy power plants such as wind, hydro and gas.

The main focus of management is to increase renewable energy assets. The Canadian facility is company-owned, but TransAlta has economic benefits to Australian and US assets. Consolidated revenue for the nine months ended September 30, 2021 was $ 332 million, an increase of 7.79% compared to the same period in 2020.

Net income of $ 97 million over the period represents an increase of 148.72% over the same period last year. TransAlta is one of Canada’s largest wind turbines, but seasonal fluctuations impact performance. The largest wind power was in the first and fourth quarters, and hydropower assets recorded the highest air volumes in the second and third quarters.

To Dividend front, TransAlta pays a large dividend of 5.02%. The current stock price is $ 18.44.

A world where you can work from anywhere

Absolute Software is trading at a discounted price given that its current stock price is 25.38% lower than it was a year ago. However, market analysts predict that prices could rise 69.22% to $ 19.02 in 12 months.Please note this Tech stocks Is a dividend payer (2.77% dividend) — rare in this sector.

The $ 559.98 million company is proud to have the industry’s first self-healing zero trust platform (endpoint resilience). Absolute’s platform guarantees maximum security and uncompromising productivity. Revenues for the first quarter of 2022 (the quarter ended September 30, 2021) increased by 53% compared to the first quarter of 2021. However, the company’s net loss is US $ 7.6 million.

According to Christy Wyatt, President and CEO of Absolute, the acquisition of NetMotion has helped the company make significant strides in the milestones of product integration. The company is in a good position to succeed in a world where you can work from anywhere.

Consistent demand

The nature of business is essential in today’s world, but cascades fly under radar. The $ 1.39 billion company offers sustainable, innovative, value-added packaging, hygiene, and recovery solutions. We also have a wealth of recycling experience.

Net income for the third quarter of 2021 was down 34.69% compared to the third quarter of 2020, while operating profit was up 35.19% to $ 73 million. “Our third-quarter results reflect the ongoing dynamic nature of the North American macro environment,” said Mario Plourde, President and CEO of Cascades.

Still, the demand for packaging and tissue products remains undiminished, thus guaranteeing business stability. Cascade trades at $ 14.01 per share and pays a significant dividend of 3.43%.

A sure choice

As Canada approaches a full recovery phase, three price-friendly stocks are a solid choice to start 2022. Each company has tangible growth potential.

Three Top TSX Stocks to Buy in 2022 Three Top TSX Stocks to Buy in 2022

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