The S&P/TSX Composite Index was up 163 points in mid-morning trading on May 3. This is a nice start for Canadian stocks after a choppy finish to the previous month. Today, I want to look at three TSX stocks that are worth buying for Canadians that have some extra cash on hand. Let’s dive in.
Why this energy stock is worth nabbing today
In late February, I’d discussed why investors should target energy stocks, as oil and gas prices were on the rise. The spot price of Western Canadian Select (WCS) is trading above $50/barrel compared to under $20/barrel this time last year. ARC Resources (TSX:ARX) is a Calgary-based company that explores, develops, and produces crude oil, natural gas, and natural gas liquids in Canada. Shares of this TSX stock have climbed 29% in 2021. The stock is up 37% from the prior year.
The company released its last batch of 2020 results on February 10. ARC Resources delivered record annual production of 161,564 boe per day in 2020. Funds from operations fell 4% for the full year but jumped 47% in the fourth quarter to $212 million or $0.60 per share.
This TSX stock still offers favourable value compared to its industry peers. Moreover, ARC Resources last paid out a quarterly dividend of $0.06 per share. That represents a 3.1% yield.
An exciting TSX stock to own in your portfolio
PyroGenesis (TSX:PYR)(NASDAQ:PYR) is a Montreal-based company that designs, develops, manufactures, and commercializes advanced plasma processes and systems in Canada and internationally. This TSX stock has climbed 59% in the year-to-date period at the time of this writing. Its shares have soared 770% from the prior year.
Investors got a look at its fourth-quarter and full-year 2020 results on March 31. Revenues jumped 269% year over year to $17.7 million while net earnings and comprehensive income surged $50.9 million from the prior year to $41.7 million. In short, it was a good year for PyroGenesis. These successes opened the door for a listing on the NASDAQ in the first quarter of 2021.
For its 2021 outlook, management pointed out its solid balance sheet and its strong organic growth prospects. Moreover, its outlook stated that it did not need to rely on tax credits or subsidies for its product lines. Still, these will provide a solid tailwind going forward. This TSX stock still boasts a P/E ratio of 23, putting it in favourable value territory compared to industry competitors.
One more TSX stock to buy right now
In April, I’d recommended that investors scoop up bank stocks as the economy recovers. Canada is lagging far behind the United States when it comes to its vaccine rollout and economic reopening. However, it has still posted an impressive economic rebound when we take these setbacks into account. Canada’s banks are also benefiting from a red-hot real estate market that is fueling a good chunk of this growth.
Laurentian Bank (TSX:LB) is a regional bank worth snatching up right now. The TSX stock has climbed 41% year over year. It released its first-quarter 2021 results on March 3. Adjusted net earnings rose to $47.6 million, or $1.03 per share, compared to $36.9 million, or $0.79 per share, in the prior year. Higher revenues at Laurentian were powered by higher prepayment penalties on residential mortgage loans and improved funding costs.
Shares of this TSX stock possess a favourable P/E ratio of 16. It offers a quarterly dividend of $0.40 per share. That represents a 3.7% yield.