The 2 Best TSX Stocks I’d Buy With $100 for 2021

It’s time to look forward to 2021 and buy these high-quality TSX stocks to outperform the broader market.

| More on:

It has been one of the most volatile years that I have ever seen. However, as the year comes to an end, it’s time to look forward to 2021 and find high-quality investment opportunities in the stock market. As the COVID-19 vaccine is most likely to be distributed in 2021, economic activities could return to the pre-pandemic levels and give a significant boost to the corporate earnings and, in turn, their stock prices. 

We’ll focus on two top TSX stocks that should be on your radar to outperform the broader markets. Notably, you need just $100 to buy these high-growth stocks. 

goeasy

goeasy (TSX:GSY) is one of the top stocks that I have been recommending for a while. It has surged over 371% from its March lows. Meanwhile, the vaccine distribution in 2021 could lead to a significant recovery in economic activities and significantly boost the shares of this subprime lender. 

goeasy’s fundamentals remain strong. Its same-store sales have consistently increased for the past 42 quarters. Meanwhile, the company has reported positive net income in the last 77 consecutive quarters. Despite the challenges from the pandemic, goeasy’s EPS jumped 52% in the first three quarters of 2020. Its EPS has increased at a CAGR of approximately 30% in the last two decades. 

With the economic reopening, goeasy could witness an increase in consumer demand. Meanwhile, its loan origination volumes are likely to improve. Further, its focus on cost reduction, strong payment volumes, and channel expansion is likely to cushion its margins. 

goeasy stock also offers solid dividends. The Dividend Aristocrat has been increasing dividends for the past six years. Meanwhile, its quarterly dividend of $0.45 per share translates into a decent yield of 1.8%. 

Given its strong fundamentals, expected improvement in consumer demand, and robust earnings growth, investors could expect the company to continue to boost its dividend payments in the coming years.  

Docebo 

Docebo (TSX:DCBO)(NASDAQ:DCBO) has dwarfed most of its peers in terms of returns in 2020. Its stock is up approximately 281% year to date, thanks to the robust demand for its corporate e-learning platform amid the pandemic. 

Notably, shares of Lightspeed and Shopify have increased by 106% and 191%, respectively, this year. 

While the pandemic drove demand for Docebo’s cloud-based learnings platform, I believe the momentum could sustain in 2021 and beyond, thanks to the growing emphasis on corporate learning. 

Docebo’s customer base is growing fast. Meanwhile, its average contract value is increasing at a healthy pace suggesting strong growth in its top line and annual recurring revenues. Docebo is slowly heading toward being profitable and reported positive EBITDA in Q3, which should act as a strong growth catalyst in the coming years. 

The company’s large addressable market, expansion of products, up-selling opportunities, and accretive acquisitions should continue to support the bull run in Docebo stock. 

Final thoughts    

Shares of both these companies have recovered sharply and have generated exceptional returns in 2020. With strong fundamentals and expected improvement in demand, both goeasy and Docebo stock is likely to outperform the broader markets in 2021 by a wide margin.  

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. The Motley Fool owns shares of Lightspeed POS Inc.

More on Bank Stocks

dividends can compound over time
Bank Stocks

Is TD Bank Stock a Buy for Its 5.2% Dividend Yield?

TD Bank stock offers a rare 5.2% dividend yield—can it rebound from challenges and reward contrarian investors? Here's what to…

Read more »

analyze data
Bank Stocks

Is BMO Stock a Buy for its 4.7% Dividend Yield?

Bank of Montreal is up 20% since late August. Are more gains on the way?

Read more »

calculate and analyze stock
Bank Stocks

4% Dividend Yield? I Keep Buying This Dividend Stock in Bulk!

If you find the perfect dividend stock, you never have to worry about investing again. And that's what you get…

Read more »

Investor reading the newspaper
Bank Stocks

Is Canadian Imperial Bank of Commerce Stock a Good Buy?

Let's dive into whether Canadian Imperial Bank of Commerce (TSX:CM) is a top buy, sell, or hold right now.

Read more »

Man data analyze
Bank Stocks

Where Will BNS Stock Be in 3 Years?

Bank of Nova Scotia is primed for growth with a bold U.S. expansion, steady dividends, and a value focus that…

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Stocks for Beginners

TFSA 101: Earn $1,596.60 per Year Tax-Free!

Investors don't have to buy some risky stock if they want tax-free high income. Instead, buy this top stock instead.

Read more »

data analyze research
Bank Stocks

TD Bank: Buy, Hold, or Sell Now?

TD is underperforming its large Canadian peers this year. Is a rebound on the way?

Read more »

data analyze research
Bank Stocks

A Dividend Bank Stock I’d Buy Over TD Stock Right Now

TD stock has long been a strong dividend and growth provider. However, recent issues could cause investors to think twice.

Read more »