2 Mid-Cap Stocks To Buy & Book Profit In 2021

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Canadian transport and utility were among the hardest hit industries due to the COVID pandemic crisis in 2020. However, two mid-cap stocks from each of the above industries withstood the test of trying times. In this article, we explore how investors see them moving post-pandemic.

The first mid-cap stock is a Canadian freight aircraft firm. Cargojet Inc. (TSX: CJT) witnessed a massive upsurge last year due to a rise in the demand of its essential delivery services, which was led by the e-commerce wave. The company expanded its client base, and its stock was hot enough to serve good returns.

Second is a mid-cap utility stock AltaGas Ltd. (TSX: ALA), which has operations across North America. It generates most of its income from the United States. The pandemic impacted both its utility operations as well as the stock price. However, the scrips have now bounced back to the pre-COVID level.

Let us check out both mid-cap stocks’ performances in detail:

 

Cargojet Inc. (TSX: CJT)

 

The cargo carrier has an attractive one-year return of almost 88 per cent. After its bull-run last year, the stock has continued to trade in the green, propelled by rising e-commerce and healthcare shipments.

The delivery jet stock fueled up more than four per cent on Friday, as investors expect strong fourth quarter earnings. The company is likely to release its 2020 full financial results today before the markets open. A positive top line can be expected from the delivery giant, which continued to operate amid lockdowns.

Cargojet’s revenue improved to C$162.3 in the third quarter of 2020, compared to C$ 117.4 million in Q3 2019.

Its 52-week high is C$ 250.01 per piece, up against its current share price of C$ 191.07. However, the stock is up approximately 182 per cent from its 52-week low of C$ 67.87 per common share.

The firm pays a consistent quarterly dividend of C$ 0.234 per stock and holds a dividend yield of 0.49 per cent. It also has a lucrative 3-year dividend growth of 7.05 per cent.

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AltaGas Ltd. (TSX: ALA)

 

The utility company reported robust fourth quarter and full 2020 numbers on Friday, February 26. The normalized earnings per share (EPS) was C$ 1.42 in 2020, a 14 per cent year-over-year increase. In Q4 2020, it was C$ 0.53.

Its normalized earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at C$ 392 million for Q4 2020 and C$ 1.310 billion for 2020, marginally up versus C$ 1.302 billion in 2019.  

The power stock is up three per cent year-to-date (YTD). The previous close was at C$ 19.29 against its 52-week high of C$ 21.82 per share.

AltaGas is distributing a monthly cash dividend of C$ 0.083 per cent, with a tempting dividend yield of 5.182 per cent.

The above constitutes a preliminary view, and any interest in stocks should be evaluated further from an investment point of view.