Yahoo Finance Prediction: These 2 Stocks Could Skyrocket in the Next Bull Market
Written by Adam Othman at The Motley Fool Canada
Owing to losses across the board, the S&P/TSX Composite Index dropped sharply by almost 4% between July 31 and August 18. As market volatility remains high, there are constant fears of a full-blown market crash. That said, a rebound is always on the cards for the Canadian stock market.
Even if the stock market goes through further declines in the coming weeks, a bull market is only inevitable. Due to the cyclical nature of the market, it is widely believed to be a matter of when and not if there will be another bull run. When that happens, several TSX stocks can outperform most of the rest of the market.
Today, we will look closely at two TSX stocks that can soar when the next bull market arrives.
SNC-Lavalin Group
SNC-Lavalin Group (TSX:SNC) is a $7.12 billion market capitalization headquartered in Montreal. It provides engineering, procurement, and construction services to businesses across several industries. Being a key player in the likes of oil and gas, environment and water, infrastructure, clean energy, and mining and metallurgy sectors, it plays a pivotal role in the economy.
Despite weakness in the broader market, it has managed to deliver strong results in 2023. In the second quarter (Q2) of fiscal 2023, the company’s net income from operations grew by an enormous 3,888% compared to the same period last year. Revenue from its services jumped by almost 22%, and it boosted its workforce by 2,400 in the last year.
As the U.S. government increases infrastructure spending, it will likely pursue more opportunities across the border to fuel its growth and increase shareholder value. As of this writing, SNC stock trades for $40.45 per share. It can be an excellent addition to your portfolio at current levels.
Stella-Jones
Stella-Jones (TSX:SJ) is a $3.76 billion market capitalization company that produces and sells lumber and wood products. Stella-Jones has firmly established itself as the leading producer of pressure-treated wood products in North America. The company is also a major supplier of electric utility and telecom companies for utility poles made of wood.
The company’s president and chief executive officer Eric Vachon has announced that the company is executing a three-year growth plan, owing to the higher pricing for its products amid the current economic environment. The company’s growth strategy is bearing fruit. In the first two quarters of fiscal 2023, its operating income and sales increased by 22% and 8%, respectively, from the same period last year.
During the same period, its net income jumped by 14%. As of this writing, Stella-Jones stock trades for $64.80 per share. Boasting a 1.42% dividend yield, it can be a good addition to your portfolio before it soars amid broader economic growth.
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Foolish takeaway
As of this writing, the TSX is still in the middle of a bear market. Despite the broader economic issues, SNC-Lavalin and Stella-Jones stock continue outperforming the market. When the market goes through an uptick, one can only imagine how high the stocks can skyrocket. While not without risks, it might be a good time to invest in these two TSX stocks before they soar.
The post Prediction: These 2 Stocks Could Skyrocket in the Next Bull Market appeared first on The Motley Fool Canada.
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Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Stella-Jones. The Motley Fool has a disclosure policy.
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