Concerns about rising new COVID variant-related cases have taken a toll on investors’ sentiments in the last few weeks. However, these concerns might not last long as the economic recovery continues amid improving vaccinations rate across the developed world. The economic recovery trend can clearly be seen in the recent consumer demand data. That’s why long-term investors should focus on buying some fundamentally strong cheap right now instead of worrying about short-term fear-driven market corrections.
Here’s a list of three of the best Canadian stocks that could skyrocket in the coming months as the ongoing economic recovery boosts their financials.
Air Canada stock
Air Canada (TSX:AC) stock is continuing to witness roller coaster ride this year. Its stock is currently trading at $24.88 per share with only about 10% year-to-date gains. Despite significantly reduced travel restrictions, the airline company has failed to regain investors’ confidence due to uncertainties about the travel demand. These uncertainties could be the main reason why even the Canadian government’s financial support package hasn’t helped its stock recover this year so far after it lost nearly 53% of its value in 2020.
On the positive side, many airline companies — including Air Canada — confirmed a recent notable rise in advanced bookings during their latest quarterly events. The Canadian flag carrier has already started preparing for the upcoming holiday season by adding new international flight routes. I believe these factors could help Air Canada post a sooner than expected financial recovery in the coming quarters. That’s why its stock could start a sharp recovery in the coming months.
Lightspeed stock
Lightspeed POS (TSX:LSPD)(NYSE:LSPD) is a Montreal-based tech firm that provides omnichannel commerce software to businesses. In the last couple of years, the company’s have seen massive sales growth that depends highly on small- and medium-sized businesses.
Last year, its sales rose by 83.8% year over year (YoY) to US$221.7 million, even as the pandemic badly affected small companies across the globe. However, Lightspeed’s sales are expected to more than double this year. The growth is likely to be supported by reopening economies and improving growth prospects for small- and medium-sized businesses. This expectation clearly reflected in Lightspeed’s recently released quarterly results, as the company posted more than 200% in YoY sales growth. That’s why you may want to add LSPD stock to your portfolio before it’s too late.
BlackBerry stock
BlackBerry (TSX:BB)(NYSE:BB) is another great tech company that could see a solid financial growth trend in the coming quarters as the global economy continues to reopen.
Last year, the demand for its QNX software dropped as the global pandemic badly affected automobile demand and production. Nonetheless, vehicle demand has already started surging this year. This continued positive demand trend could boost BlackBerry’s sales and earnings growth in the coming quarters.
Moreover, the Waterloo-based tech firm has been investing heavily in advanced technologies for autonomous and electric vehicles lately. This move could help BlackBerry become one of the key players in the electric and self-driving car technology segment in the near term. That’s why I find BB stock not only good for the short-term but also for the long-term.
