3 of the Best Rallying TSX Stocks to Buy in July 2021

Here’s a list of three rallying TSX stocks that investors can buy in July 2021, as they might continue to rally in the coming months.

| More on:

Canadian stocks ended the second quarter on a positive note. The TSX Composite Index posted solid 7.8% gains in the last quarter — bringing its gains in the first half of the year to 15.7%. Notably, it was the fifth consecutive quarter when the market benchmark inched up. While some stocks might look overvalued right now, many rallying stocks still have room to rally further. Here’s a list of three such rallying TSX stocks that investors can buy in July 2021, as they might continue to rally in the coming months.

Aritzia stock

Aritzia (TSX:ATZ) is a Canadian design house and apparel retailer that owns more than 100 boutiques throughout North America and also sells its products online. Its stocks rose by about 25.7% in June compared to the TSX Composite benchmark’s 2.2% gains for the month.

Last month, the company announced its plan to acquire Reigning Champ — a Vancouver-based brand which mainly designs and makes premium athletic wear for both men and women. With this, Aritzia plans to accelerate its product expansion strategy for men’s wear. This step is likely to help the company grow its overall business faster — raising its earnings growth estimates. These positive factors could keep its stock soaring in the near term.

Shopify stock

Shopify (TSX:SHOP)(NYSE:SHOP) certainly has been one of my favourite TSX stocks to buy in the last couple of months. Despite a solid trend in its financials, its stock underperformed the broader market by a wide margin until the end of May. Nonetheless, its stock rose by 22.5% last month.

In the first quarter, Shopify’s sales more than doubled from a year ago, and its adjusted earnings jumped by more than 950% YoY. While Shopify might report a minor decline in its sales growth rate in the coming quarters, it still is likely to be much higher than most other tech companies. SHOP stock is currently trading with 26% year-to-date gains — which is much lower than its annual gains in the last couple of years. Notably, the stock yielded more than 170% positive returns in 2019 as well as in 2020. Given its stellar sales and earnings growth estimates, I expect that a medium- to long-term rally in Shopify stock has just started.

BlackBerry stock

BlackBerry (TSX:BB)(NYSE:BB) is another great company to bet on in July. Its stock has seen extreme volatility this year so far due to the recent Reddit trading mania. While you may credit Redditors for increasing the BlackBerry stock’s volatility and driving its recent rally, but its gains couldn’t have sustained for long if there was no positive reason for it to go up.

Apart from its growing core cybersecurity business, the company is set to gain big from the upcoming electric and autonomous vehicle revolution. BlackBerry is focusing on developing the technology for futuristic vehicles that would help it become one of the major players in the automotive technology segment, I believe.

BB stock rose by 22.2% in June — bringing its year-to-date gains to nearly 80%. Nonetheless, considering the massive future growth potential of its business, I find its stock attractive.

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.

The Motley Fool owns shares of and recommends Shopify. The Motley Fool recommends BlackBerry and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Tech Stocks

Man data analyze
Tech Stocks

3 Reasons Celestica Stock Is a Screaming Buy Now

These three reasons make Celestica stock a screaming buy for long-term investors.

Read more »

profit rises over time
Dividend Stocks

These 2 Dow Stocks Are Set to Soar in 2025 and Beyond

Two Dow Jones stocks are screaming buys but Canadians must hold them in an RRSP or RRIF to avoid paying…

Read more »

telehealth stocks
Tech Stocks

Well Health Stock: Buy, Sell, or Hold?

Another record-breaking quarter and strong demand sets the stage for continued momentum for Well Health stock.

Read more »

3 colorful arrows racing straight up on a black background.
Dividend Stocks

TSX Stocks Soaring Higher With No Signs of Slowing

Three TSX stocks continue to beat the market and could soar higher in an improving investment landscape.

Read more »

profit rises over time
Tech Stocks

2 Non-AI Tech Stocks to Buy in November for Better Returns

Not all AI stocks are riding the hype train, and for many investors, well-understood and predictable growth stocks might be…

Read more »

worry concern
Tech Stocks

In a Few Years, You’ll Probably Regret Not Owning BlackBerry Stock

Here’s why I believe BlackBerry could be one of the most overlooked Canadian tech stocks right now.

Read more »

A worker uses a double monitor computer screen in an office.
Tech Stocks

Is Constellation Software Stock a Buy for its 0.25% Dividend Yield?

Here's what investors may want to consider when it comes to Dollarama (TSX:DOL) and its relatively low dividend yield.

Read more »

Nurse talks with a teenager about medication
Tech Stocks

Shares of WELL Health Just Zoomed. Is It a Buy?

Given its improving financials and healthy growth prospects, WELL Health could deliver superior returns over the next three years.

Read more »