It looks like we can finally say it: we’re in recovery. Not only that, we know the kind. The COVID-19 pandemic created a K-shaped recovery. While some industries continue to climb, others have either remained stagnant, or continue to fall. That’s why it’s important for investors to demand strong performance from their stocks, and at a valuable price.
So if you’re looking for strong growth in 2021, without a major investment, these three stocks are great places to start for superior returns.
StorageVault StorageVault Canada Inc. (TSX:SVI) was a company barely affected by the pandemic. In fact, it continued to deliver strong revenue throughout the year. During its latest earnings report for the fourth quarter and yearly results, StorageVault reported a 6% year over year increase in net operating income for the quarter, and a 15% growth for the year. The company achieved $232.7 million in acquisitions, and have already hit their 2021 target of $100 million in acquisitions by adding 15 new locations. That brings the total to 217.
The company proved itself as a necessity, driven by death, downsizing, divorce and dislocation. This is always going to be a case, and pretty much guarantees everyone will need this company at some point in their lives. So you get solid revenue, and stable returns. While shares are up 2,700% in the last decade, those shares still only cost about $4 as of writing. That’s a compound annual growth rate (CAGR) of almost 40%!
NorthWest Healthcare NorthWest Healthcare Properties REIT Units (TSX:NWH.UN) proved it was a clear necessity this year. The company owns a diverse range of health care properties around the world. Revenue soared after the pandemic, jumping from a 1% year over year increase to around 10% for the last few consecutive quarters. This was drive by low interest rates, delivering an average lease agreement of 14.5 years for its properties, and a 97% occupancy rate.
Yet again, while shares are up 93% in the last five years for a compound annual growth rate (CAGR) of 14%, and 21% in the last year, those shares still trade around $12.75 as of writing. The company also offers a solid dividend yield of 6.4%, and a bargain P/B ratio of 1.5 as of writing. The company’s stable strategy of growth through acquisition makes it practically a must if you want growth this year and beyond.
Goodfood Market Goodfood Market (TSX:FOOD) continues to outpace the market this year and beyond. In just a year the stock doubled as the pandemic created a surge for meal kit delivery. Yet the $860 million market cap company still has so much room to grow compared to its billion-dollar market cap peers. The customer base continues to grow rapidly, as does the need for online grocery delivery. So there’s still more expansion this company can do.
All of this demand means the share growth of 357% in the last year 275% in the last three years is only the beginning. That CAGR of 55% could continue for years to come, offering incredible growth in this recovering economy. The stock is going through a pullback at the moment as investors worry about the peak, making it the perfect opportunity to potentially see your shares double yet again in this next year.
The post Bargain Buyers: 3 Top Stocks to Buy Under $20 for Superior Returns appeared first on The Motley Fool Canada.
Fool contributor Amy Legate-Wolfe owns shares of Goodfood Market and NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool recommends Goodfood Market and NORTHWEST HEALTHCARE PPTYS REIT UNITS.
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