Rising stars: 5 Canadian stocks to look out for in 2021

Summary

• These five stocks saw high price gains in the last three months.
• The companies have navigated the pandemic with strong business models
• The five rising Canadian stocks that has the potential to do well in the coming days

Canada’s economic recovery is on the slow track, with the gross domestic product expected to be around six per cent this year, lower than previous estimates, as per Bank of Canada. However, stock markets have defied all trends and continued to rise, breaking records one after the other.

With quarterly earnings season around the corner, analysts expect the figures may be robust as the country moves steadily to vaccinate all its citizens.

Here are five rising Canadian stocks that has the potential to do well in the coming days, as the economy lifts itself and normalcy slowly restores.

1. New Found Gold Corp. (TSXV: NFG)

Stocks of Canada-based this gold exploration company closed at C$ 10.65 apiece on July 21, 2021. The stock gained nearly 271 per cent in last six months.

The gold production of the company posted a record high by 16.5 per cent month-over-month in June 2021. The revenue in June 2021 also went up by C$ 11.9 million or 11.4 per cent compared to revenue in May 2021.

The company’s net loss narrowed to C$ 5.39 million in Q1 FY2021 from C$ 6.61 million same quarter last year. The loss was accrued due to the increase in exploration and evaluation expenses.

The price-to-book (P/B) ratio is 23.67 times.

As per the management’s commentary, the company's operations have not been materially impacted by the outbreak of the pandemic so far, with all its key projects trending positively.

2. Standard Lithium Ltd (TSXV: SLI)

The next company on our list is Standard Lithium Ltd (SLI), another metal and mining company that develops and explores lithium brine properties in the United States.

The company has a market cap of C$ 1.03 billion and 141.92 million outstanding shares.

The mining scrip has been trading nearly 17 per cent down from its 52-week high of C$ 8.86 (July 13, 2021) and nearly 620 per cent above its 52-week low of C$ 1.02 (September 04, 2020).

The stock went up by nearly 88 per cent within a month. In the last one year, it climbed by nearly 562 per cent.

Owning to the pandemic and strict protocols in place the company incurred a net loss of C$ 9.8 million for quarter ending March 31, 2021, an increased loss of C$ 5.7 million on December 31, 2021

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3. Reconnaissance Energy Africa Ltd. (TSXV: RECO)

Oil exploration company Reconnaissance Energy Africa Ltd (RECO) explores and develops oil and gas in regions like Namibia and Botswana.

As a part of ESG activities, the company provides safe drinking water in many Namibian communities and invests capital in such projects.

It has a market cap of C$ 1.82 billion and 163.84 million outstanding shares.

The stock is trading nearly 1,891per cent above its 52-week low of C$ 0.56 (August 24, 2020) and has rocketed by a whopping 1,387 per cent over the past year.

In first quarterly report for FY2021, Reconnaissance net loss widened to C$2.89 million from C$ 1.38 million in Q1 FY2020. Owing to the pandemic and strict lockdown in place, operations were temporarily suspended, which resulted in this loss.

The company has a market cap of C$ 1.83 million and 163.84 million outstanding shares. The recent price-to-book (P/B) ratio stands at 26.54x  

4. Hive Blockchain Technologies Ltd. (TSXV: HIVE)

Hive develops infrastructure solutions for the blockchain industry and is first crypto miner to be publicly traded on TSX.

It strives to bridge the gap between the traditional capital market and the emerging blockchain space while adhering to the ESG norms.

The company’s income from digital currency mining is reported as US$ 13.7 million in Q3 FY2021, up 174 per cent year-over-year.

The recent cryptocurrency rally and increased production of Bitcoin were the main reason for the increase in the revenue this quarter. The net income for the quarter stands at US$ 17.2 million

On the valuation metrics, the price-to-earnings (P/E) ratio stands at 25.60x, and the price-to-book (P/B) ratio stands at 15.83x and whereas the EPS is 0.11.

5. CloudMD Software & Services Inc (TSXV: DOC)

CloudMD Software & Services Inc (DOC) offers SAAS-based healthcare solutions across Canada. The company has invested in technologies like telemedicine and uses Artificial Intelligence (AI) in healthcare.

The company has a market cap of C$ 449.02 million and 231.38 million outstanding shares as on July 22, 2021. The healthcare scrip rose by 11 per cent in the last one month and nearly 238 per cent over the past year.

The total revenue posted is C$ 8.8 million in Q1 FY2021, up by 187 per cent year-over-year (YoY). The net loss stood at C$ 5.3 million.

The price-to-book (P/B) ratio stands at 2.57 times.