There is a market downturn underway, as the S&P/TSX Composite Index is down by 4.62% at writing from its November 12, 2021, levels. Despite the significant decline in the last few weeks, the Canadian benchmark index is up by 18.45% year to date after a year full of massive gains.
At writing, the index is back up by 1.45% from its December 1, 2021 low, and investors seeking Canadian growth stocks might have a more hopeful outlook about allocating their investment capital. Today, I will discuss two TSX stocks that have been under significant pressure for some time now but could be well positioned to provide you with massive returns through capital appreciation.
Remember that there is an inherent risk involved in investing in any growth stock, but these two equity securities could be worth having on your radar as we move closer to 2022.
Goodfood Market Goodfood Market (TSX:FOOD) is a stock worth keeping an eye on right now. The meal-kit company has not had a good year on the stock market during 2021. At writing, it is trading for $4.37 per share, and it is down by over 62% year to date. However, it might be a good stock to pick up at its current levels.
Several factors impacted its performance on the TSX this year, including supply chain difficulties and rising labour and food prices due to inflation rates hitting their highest figures in 18 years in October. Reopening economies and fewer lockdowns also led to reduced revenues, pushing its share prices further down.
However, analysts expect the stock to outperform the broader market and have set a target price of more than twice its share price at writing. The success of its new on-demand services will play a major role in whether it could rally on the stock market soon.
Bombardier (TSX:BBDb) Bombardier (TSX:BBD.B) is a $4.14 billion market capitalization Canadian business jets manufacturer, and it looks well positioned to thrive, as the airline industry has seen improving conditions. The airline company received a bailout from the Canadian government before the pandemic was even in the picture. It has since focused on its more profitable ventures instead of carrying forward its less-lucrative segments.
The company’s latest earnings report was impressive. Bombardier stock generated $1.4 billion in revenues through its business aircraft manufacturing business, up by 17% from the same period last year. Fewer travel restrictions and higher vaccination rates might make things even better for the company. However, there is a degree of risk involved with the new COVID-19 variant that could be challenging for the company.
At writing, Bombardier stock is trading for $14.07 per share. Provided that economies keep reopening, it could set you up for significant wealth growth through capital gains.
Foolish takeaway Goodfood Market stock and Bombardier stock might be well positioned to provide you with significant investment returns through capital gains as the year inches closer to an end. However, it remains to be seen how the advent of another contagious variant of the COVID-19-causing coronavirus might impact global equity markets in the coming weeks.
If all goes well, and global economies can keep it under control, December could turn out to be a massive month for investors who hold these two companies in their investment portfolios. If you choose to invest in the companies, remember that there is a degree of capital risk involved due to potential headwinds caused by the pandemic.
The post 2 Stocks Primed for a Huge December appeared first on The Motley Fool Canada.
Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Goodfood Market Corp.