4 TSX Profit Stocks Under C$6 To Buy In 2021

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Summary

• These stocks have rapidly moved up the ladder and could quadruple in 2021.
• Their low price and potential for high return give them the winning edge.
• The new trends in a post-COVID world would give them the environment to excel.

These four Canadian stocks can be of great value in 2021. Many investors are already aiming at these stocks and the buzz is high in the markets. Their value has been rising at a breakneck pace.

What makes them attractive is the value proposition and the potential return they can give you in a short span. Hence, this could be a good time to own these stocks before they get expensive.

Although the blue-chip stocks would continue to play their charm-offensive, these new rabble-rousers in the stock markets will not give up without a fight. And they have come a long way in proving themselves.

So, here are the four stocks that might be a smart choice if you are looking to add more firepower to your stock portfolio in 2021.

Pic Credit: Pixabay.

Crescent Point Energy Corp. (TSX:CPG)

This Canadian oil and gas company has been one of the top performers in the sector. It has proven oil reserves of 469 million barrels. In Q4, the company reported an adjusted funds flow of C$220.2 million, and the year ended December 31, 2020, it registered a cash flow of C$874.4 million.

As of December 31, 2020, the company’s net debt stood at C$2.1 billion.

Besides, Crescent Point’s recent purchase of Kaybob Duvernay assets for C$900 million is expected to generate regular cash flow in the months ahead.

The CPG stock has been steadily adding value over the past few months. The stock was priced at C$4.81 a piece at the end of market close on Thursday. It rose 90 per cent in the past three months and 100 per cent in the past 12 months. Crescent Point’s current market capitalisation is C$2.5 billion.

Baytex Energy Corp. (TSX:BTE)

Baytex is another Canadian energy company drawing investors’ attention in recent times. Not only the company has huge growth potential, but the price of the stocks is also low, which makes them attractive. The operations of this Calgary-based company are concentrated in North America.

It holds some of its assets in Duvernay, Lloydminster Peace River, and Viking. The company also has natural gas assets in Western Canada. Its US assets are in Eagle Ford, Texas.

In Q4 ended December 31, 2020, Baytex reported a net loss of C$221,160.

Its stocks were priced at C$1.23 at market close on Thursday. Like some of its peers, Baytex stocks have been adding value, rising nearly 80 per cent in the past six months.

Baytex has a market cap of C$690 billion.

CareRx Corporation (TSX:RRX)

CareRx Corporation is a Canadian health care company and provides pharmacy services to old-age persons. It serves thousands of individual customers as well as care and retirement homes.

This health care stock has been drawing investors’ attention of late for its significant growth over the past few months. Its value rose 41 per cent and 13 per cent in the past three months and six months.

In Q3 ended September 31, 2020, it reported incomes of C$45,633, which was an increase of 45 per cent compared to the same period in the previous year. It reported a net loss of C$6,407 in the same period. CareRx has a market cap of C$143 billion.

Whitecap Resources Inc. (TSX:WCP)

Whitecap Resources Inc. is another Canadian oil and gas company that has been drawing investors’ attention. The C$3.5-billion company has extensive oil and natural gas exploration projects in Western Canada. It buys assets that are drill-ready or have proven reserves, which give help then save money on logistics.

Whitecap stocks were trading at C$5.87 per share at market close on Thursday. These stocks have also seen steady growth, gaining 42 per cent and 132 per cent in the past three months and six months, respectively. The stock holds a dividend yield of 2.884 per cent.

In Q4, it reported a net loss of C$331,951, up by 62 per cent, compared to the corresponding period in the previous year. Its total loss in 2020 was 1.8 million.