5 Rising TSXV stocks to buy & hold for long term

Sumamry

• These TSXV stocks posted significant price gains in the last three months.
• Junior energy companies dominate this list of TSXV stars.
• Read on to know more about the best performing TSXV stocks in the last three months.

Good stock generates exponential return and stellar growth. Every investor finds a reason and an opportunity to spend their hard-earned money and invest in performing stocks. The TMX Group has put forth a list of top Toronto Stock Exchange (TSXV) stocks, ranking the top 50 performers as ‘Rising Stars’ across sector and industries. These stocks are listed based on most significant gains in price in the past three months*. Here’s a quick glimpse at these companies and their stock fundamentals:

1. Highwood Oil Company Ltd (TSXV:HOCL)

Highwood Oil Company Ltd (HOCL) is a Canadian-based oil and gas company with operations spanning in the Western Sedimentary Basin of Canada and daily production and installed capacity of 1300 barrels.

The investors of Highwood Oil Company Ltd (HOCL) have lots to cheer for. The company is among the top listed stocks in TMX’s rising star category. Trading at a price of C$17, the energy stock has a market capitalization of over C$108 million. The stock has gained over 142 per cent this year and still trading nearly 11 per cent below its 52-week high of C$19 (attained on June 29, 2021), providing an entry point for investors.  The company posted total revenue (net of royalties) of C$4.1 million, down 74 per cent year-over-year (YoY) in the quarter ending March 31, 2021, after its operations were hit due to covid restrictions. But the net loss reduced to C$0.7 million from C$3.7 million a year ago.

2. Spartan Delta Corp. (TSXV:SDE)

Another energy stock that has been gaining on rising crude prices is Spartan Delta. This Canada-based company explores petroleum and develops natural gas based properties in Alberta region.

SDE stock is trading at C$5.85, up 96 per cent year-to-date. The stock is currently down 5.65 per cent from its 52-week high C$ 6.2, which it hit last week.

The company delivered a stellar financial performance with total revenue of C$ 99.7 million in December 2020, up from C$1.627 million a year ago. After four consequitive years of losses, the company entered profitable territory, posting a net income of C$ 47.66 million. The company aims to strengthen the core business with assets acquire in Simonette and Gold Creek areas in Canada. The company is evenly poised with an EPS of C$ 1.78 and a P/E ratio of 3.20x.

3. Reconnaissance Energy Africa Ltd (TSXV:RECO)

Energy companies are ruling TMX’s Rising Star list. The third stock is Reconnaissance Energy Africa Ltd. – yet another stock from the oil and gas industry.

RECO stock skyrocketed by over 440 per cent and is currently trading at C$ 11.98. It’s 52-week high and low are C$ 13.84 and C$ 0.56, respectively. The EPS is C$ -0.09 and P/E ratio is -127.20x, down due to losses incurred by the company.

The company’s operations were severely impacted last year. As per interim financial statements for the quarter ending March 31, 2021, net loss increased to C$ 2.89 million, up from C$ 1.37 million a year ago.

However, it was listed as the top performing company in the energy sector in the 2021 TSX Venture 50, based on its stock price appreciation, rise in market capitalization, and trading volume.

Image: © Kalkine Image 2021

4. Topicus.com Inc. (TSXV:TOI)

The fourth on the list is an entrant from the tech industry. Topicus.com was spun out of Constellation Software Inc. (TSX:CSU) – a top Canadian tech stock, and is ranked among the top stock performers in the junior tech segment by TMX Group. The stock is trading over C$89.90, up 16 per cent in the last one month and over 5+ per cent in the last three months.

It is down by over 5 per cent from its 52-week high if C$94.8, suggesting room for investors to make an entry in the stock. The C$3.5-billion dollar company provides vertical market software solutions.

The tech firm’s revenue jumped by 50 per cent YoY to €179.6 million in Q1 2020, while earnings decreased to a net loss of €2,436.1 million from an income of €17.5 million a year ago.

5. Filo Mining Corp. (TSXV:FIL)

Filo stock catapulted by over 430 per cent this year and is currently trading at little over C$ 89 apiece. In the last three months, stocks of the mineral exploration company advanced by over 200 per cent, making it among the top performing stocks of TMX’s junior basic minerals list. The C$1.1-billion company holds a price to book ratio of 146.

The company’s net loss increased to C$10.4 million for the three months ended March 31, 2021, up from C$11.8 million in 2020.

*All details as on Friday, July 6, 2021