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Highlights
- Midcap stocks can help investors if secured with little research and analysis.
- Midcap companies can have greater growth exposure than large-cap players.
- Some TSX midcap stocks can benefit from the clean energy transition and growing e-commerce industry.
Some investors generally tend to prefer big companies like bluechip to safely invest their money. However, midcap stocks can help investors if secured with little research and analysis.
One primary reason to invest in midcap companies is that they have greater growth exposure than large-cap companies, which can make them suitable for growth-focused investors.
Let’s explore two TSX midcap stocks that investors can research and analyze if planning midcap investing.
TransAlta Renewables Inc (TSX:RNW)
TransAlta Renewables is a utility firm with diversified renewable power production operations, including hydroelectricity, wind, solar, natural gas plant and pipeline, and battery storage projects across North America and Western Australia.
The renewable power company recently announced the extension of its current power purchase agreement with New Brunswick Power Corporation for an additional ten years till December 2045.
The utility company recorded 1,310 Gigawatt hours (GWh) of renewable energy production in the latest quarter compared to 1,109 GWh in the same period a year earlier. The green energy company also said its revenue surged to C$ 143 million in the first three months of 2022, greater than C$ 126 million in Q1 2021.
TransAlta Renewables also pays a monthly dividend of C$ 0.078 per share to its shareholders.
Also read: Tonix (TNXP) stock soars after monkeypox-related patent. Buy call?
Lightspeed Commerce Inc (TSX: LSPD)
Lightspeed Commerce introduced a new B2B network that will the company said, help brands and retailers integrate B2B orders directly into the point of sale on June 2.
On the financial front, Lightspeed Commerce reported a year-over-year (YoY) surge of 78 per cent in total revenue in Q4 FY2022. The software technology company noted a significant 77 per cent and 88 per cent growth in its subscription and transaction-based revenue in Q4 2022 compared to Q4 2021.
However, the tech company saw a net loss of US$ 114.5 million in the latest quarter compared to C$ 42 million in Q4 2021.
Bottomline
Some TSX midcap stocks can provide significant growth to investors with the increasing role of the clean energy transition and the e-commerce industry in the economy. Notably, TransAlta Renewables Inc also provides monthly dividends, expanding your income source.
Also read: WSP to acquire Wood’s Environment and Infrastructure unit. Buy alert?
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
