After a volatile year, cannabis and tech stocks in Canada could be priming for another run in 2019, with commodities leading the charge, Haywood Capital Markets equity research team writes in a note to clients.

Canadian investors should focus on energy stocks because of their “deep value,” look at gold miners with the metal “breaking out” and keep an eye on real estate investment trust, or REITs, for a “strong uptrend,” the team writes.

North American stock markets have seen their fair share of volatility in 2018, and the broker thinks that there could be more in the short-term. However, the team notes that if this market is in the late stage of the current economic cycle, commodities could outperform, and Canadian stocks could see a strong reversal.

The broker thinks that the tech sector has weakened in Canada after an “extraordinary” ten-year run, creating a buying opportunity for some equities. The marijuana sector will continue to remain volatile in 2019, but the Canadian licensed producers that are performing well “operationally and within its supply chain” will be the winners, the team added.

Haywood’s top picks for Canada in 2019, sector-by-sector:

  • Energy: Leucrotta Exploration Inc., Petroshale Inc., Whitecap Resources, Inc.
  • Mining: B2Gold Corp., Lundin Mining Corp, NexGen Energy Ltd., Pure Gold Mining Inc., Semafo Inc., Uranium Energy Corp.
  • Special Situations: CannTrust Holdings Inc., Organigram Holdings Inc., PRO Real Estate Investment Trust
  • Technology: Solium Capital Inc., AcuityAds Holding Inc.

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