1 TSX Stock to Buy Immediately in 2021

If you haven’t made a sizeable investment in 2021, and your TFSA or RRSP savings are yet to be parked in a good asset, there is one stock you might want to consider.

| More on:

There are two common methods for saving for investing. Some people save whatever’s left at the end of the month after meeting all the usual (and discretionary) expenses. Other, more serious, and goal-oriented investors take the savings out of the equation at the beginning and try to spend the rest of the month on whatever money they have left.

This allows them to develop a predictable and reliable saving pattern. Such investors find it easy to max out their TFSA and even their RRSP (if that’s part of their savings plan). But a strict saving pattern doesn’t mean you should also designate a time to invest your savings. Having enough capital at your disposal gives you the freedom to make a move at the optimal moment and buy when the opportunity is perfectly ripe.

One such opportunity might be the relatively new insurance company Trisura Group (TSX:TSU).

The company

The company Trisura Group is made up of three wholly owned subsidiaries: a guarantee insurance company, a specialty insurance company, and international insurance. It operates in the insurance segments of surety, risk solutions, corporate governance, and reinsurance. The group was founded in 2017, and since its inception, it has grown its market value by over 400%.

The underlying companies are relatively older, especially the Canadian side of the business, which has a 15-year operating history. The U.S. business is about three years old. The company draws its revenue from three different insurance segments: specialty, excess and surplus lines market, and property and casualty insurance.

The stock

Trisura has a strong balance sheet, and its revenue has been steadily increasing for the last five years. But 2020 has been especially good for the company’s financials. That’s probably the reason why the share price has grown over 195% since the start of 2020. The growth has also made the insurance company a bit overpriced. But even with a heavy price tag, Trisura might be a good long-term growth bet.

The company has been growing steadily — both its financials and its international presence. It has also been sensible about investing its capital, and about 54% of it is tied to secure bonds. Both the company and its investments have relatively stellar ratings, making it a relatively secure long-term investment.

The stock has been hovering around $115 and $125 per share for a while now, but it has been slightly dipping for the last few days. If it keeps going in that direction, you might be able to buy it at a more favourable price.

Foolish takeaway

Even after consolidation, Trisura Group is nowhere near the scale of the insurance giants in the country, but it might share their stability. Plus, it has a strong U.S. and international presence, and if it keeps growing its outside exposure, it might achieve new growth heights in the near future. It hasn’t started paying dividends yet.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends TRISURA GROUP LTD.

More on Investing

rising arrow with flames
Investing

2 Riskier Stocks With High Potential for Canadian Investors in November

Risky stocks such as Well Health Technologies have the potential to provide life-changing long-term returns.

Read more »

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »

senior man and woman stretch their legs on yoga mats outside
Dividend Stocks

TFSA: 2 Canadian Stocks to Buy and Hold Forever

Here are 2 TFSA-worthy Canadian stocks. Which one is a good buy for your TFSA today?

Read more »

Canada day banner background design of flag
Investing

Got $500? 5 Top Canadian Stocks to Buy and Hold

These top Canadian stocks have solid fundamentals with potential to outperform the benchmark index by a wide margin.

Read more »

man touches brain to show a good idea
Energy Stocks

1 No-Brainer Energy Stock to Buy With $500 Right Now

Should you buy a cyclical energy stock at its decade-high? Probably not. But read this before you make a decision.

Read more »

Asset Management
Stocks for Beginners

TFSA: 4 Canadian Stocks to Buy and Hold Forever

Thinking about what to buy with the new TFSA contribution space in 2025? These four Canadian stocks are worth holding…

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

Top Canadian Renewable Energy Stocks to Buy Now

Here are two top renewable energy stocks long-term investors can put in their portfolios and forget about for a decade…

Read more »

ETF stands for Exchange Traded Fund
Investing

Here’s the Average TFSA Balance at Age 54 in Canada

Here are two ways to optimize your TFSA for either growth or income via ETFs.

Read more »