You’ve found the correct article if you’ve been searching for the best stock to buy right now in Canada.
Furthermore, your search for the best Canadian stocks demonstrates your conviction that there is worth here at home.
In terms of returns, Canadian stocks, as well as the Toronto Stock Exchange have a bad image. Many people seeking to learn the way to purchase stocks in Canada avoid the Canadian markets in favour of those in the south, where there is expected to be greater growth.
Why? The United States GDP is first and foremost much bigger than ours. High-flying tech firms like Microsoft (MSFT), META, Apple, Amazon (AMZN), as well as Alphabet, are also represented. (GOOG). You can be sure that indexes like the S&P 500 as well as NASDAQ will provide you with better long-term total returns.
But given the climate, we might be entering, there is money to be made in Canadian stocks as well as the Canadian stock market. This is a recession as well as an economic decline. Businesses will encounter numerous challenges in the future, but Canadian equities are expected to perform better than the majority of them.
1. 10 Best Stock to Buy Right Now in Canada
The list of 10 best stocks to buy right now in Canada are listed below:
1.1 Sunlife Financial
Individuals and businesses in Canada, the United States, as well as Asia, can purchase life insurance, retirement, as well as asset management goods from Sun Life Financial (TSE: SLF).
About 38% of the company’s adjusted profits are contributed by its investment management division. By the end of 2022, it will have more than $900 billion in assets under control.
Even though it belongs to an international company, Canada accounts for about 32% of net profits.
The business has eight years of dividend growth and is a Canadian Dividend Aristocrat. Since the business is currently only allocating about 50% of earnings as well as 39% of its revenue to the dividend, I don’t anticipate the expansion to slow down any time soon either. As a result, over the past five years, the business has been able to increase the dividend at a virtually double-digit annual rate. Despite being less expensive than its rival Manulife Financial, it remains more reliable as shown by its extended growth streak.
Insurers benefit from rising rates, so the business ought to be able to thrive in the current climate. Analysts concur, anticipating mid to high-single-digit revenue and earnings growth in 2023. Definitely not a record-breaking rate of increase. Sunlife Financial serves as a large-cap blue gem in Canada, but this must be remembered.
If you had kept the dividends over the previous ten years, it has traditionally produced strong, double-digit annualized returns with reduced overall volatility.
Payment technology options are offered by Nuvei (TSE: NVEI) to partners and merchants. Mobile payments, payments via the Internet, and in-store payments are the solutions offered. North America, Europe, the Arabian Peninsula, Africa, Latin America, as well as the Asia Pacific region, make up its geographical parts. Its income is primarily produced in North America as well as EMEA.
In August 2020, the tech stock began trading publicly. It offered a few of the greatest returns on the TSX Index prior to a nasty short report released by an organization along with an upsurge in payment processing companies.
The brief report had a negative impact on the company’s stock price, which fell from the $175 mark to as low as $63 per share. However, a number of influential analysts defended Nuvei, claiming that the report was inaccurate and that the share price of the business now has significant upside potential.
The product line from Nuvei supports both in-person and internet transactions. Its rivals include Shift4 Payments, WorldPay, Global Payments, Fiserv, Lightspeed Commerce, and Stripe.
Revenue at Nuvei increased by more than fifty percent in 2020 and by 64 percent in the year 2019. The following year, 2021, was exceptional, with a top-line increase of 80% from the previous year. Analysts anticipate that the potential recession will cause revenue development to significantly slow down in 2023. It is nevertheless anticipated to record significant development.
1.3 Parkland Fuels
One of the largest and most rapidly expanding privately held sellers of fuel as well as petroleum products in North America is Parkland Fuels (TSE: PKI). In both Canada as well as the United States, Parkland provides services to customers, businesses, and wholesalers in addition to drivers.
The company’s expansion is mainly fueled by acquisitions, as shown by its acquisition of Chevron Canada’s downstream fuel business, which made them the sole distributor of fuels bearing the Chevron brand.
Speaking of purchases, the firm recently bought M&M Foods to enter the frozen food industry. The purchase presents Parkland with a brand-new development opportunity. The outcome will be thrilling to see.
Another advantage of the business’s acquisition-heavy approach is that it can distribute its goods to a diverse range of marketplaces across North America.
Parkland had experienced exceptional development prior to the pandemic. It was one of the fastest-growing mid-cap companies in the nation. However, the pandemic had a significant impact on the company, as travel activity plummeted due to shutdowns. It definitely harmed its refining business, as the cost of crude oil fell as a result of the lack of travel.
Despite improvements from many other industry players, such as Alimentation Couche-Tard, Parkland remains considerably beneath its pre-COVID valuations at the time of writing. The market is having difficulty valuing this company. Long-term buyers will undoubtedly find it appealing. Parkland Fuel’s price per share is being held back by the company’s debt. However, it has already navigated this sort of rate of interest environment numerous times.
Given that the business provides a healthy dividend, Canadians would be remiss not to look into the stock or add it to their watchlist. The business is a Canadian Dividend Aristocrat, increasing dividends for nine consecutive years as well as paying every month, making it even more appealing to Canadian investors seeking a consistent income stream.
We’ll be diligent and let the company recoup from this unprecedented global epidemic as long as it is able to preserve its payment of dividends and remains in a strong position to grow.
1.4 Goeasy Ltd
Alternative lenders are a specific niche market that has emerged in the banking industry over the past five years. among the top Canadian companies in that industry? Goeasy Ltd. (TSE: GSY).
The easy home and easy financial segments of Goeasy Ltd, a small-cap Canadian stock, offer non-prime rental and lending services. Since its inception, the business has made loans totalling more than $5 billion.
Additionally, it works hard to raise Canadian debtors’ credit scores, with sixty percent of clients seeing an improvement less than a year after borrowing.
The business offers loans for a broad range of goods, including appliances, electronics, and furniture. Due to stringent lending restrictions imposed on Canada’s main financial institutions, Goeasy has emerged as a desirable alternative for Canadians.
Many investors consider Goeasy’s business strategy to be exploitative. Don’t invest in something if it doesn’t follow your beliefs. Some investors are unwilling to support businesses that produce such goods, much like they are with tobacco or booze. You cannot, however, dispute that Goeasy’s strategy is effective.
Goeasy’s income has increased at an average yearly growth rate of 12% since 2001. Since 2001, the business has never experienced a year with flat or declining sales. If we look at recent years, the company’s revenue doubled between 2015 and 2020, and in 2021, it continued to expand strongly by double digits. This demonstrates how widely accepted alternative financiers are.
Here in Canada, there are only a few 5G shows. If we want access to 5G prospects with high growth, we are frequently compelled to travel in the south to reach the American markets. Despite not precisely having the greatest future prospects in the world, Telus (TSE: T) is currently the best telecom stock for investors in Canada in terms of both 5G exposure as well as overall growth.
If you want to invest in an additional pure-play telecom company, you should purchase Telus stock, which is one of Canada’s Big 3 telecom companies. Telus is not a media company, in contrast to Rogers Communications as well as BCE, and has made investments in industries that produce higher margins, such as telehealth and security.
In terms of development, the last a period of five years hasn’t been particularly good for Canadian telecommunications. Over the five years prior, Telus’ revenue has only increased by 3.7% annually while earnings have remained largely unchanged.
1.6 Royal Bank of Canada
This roster, which includes The Royal Bank of Canada, is dominated by growth stocks, so it felt strange. (TSE: RY).
But this Canadian bank stock is currently too good to leave off a list of the top Canadian stocks to buy.
With activities in Canada, the United States of America, as well as as we’ll see later on, 40 other nations, Royal Bank is a multinational corporation. There is not a bank with greater access to foreign banking than this one.
It is a well-diversified bank that offers services in the corporate, capital market, insurance, asset management, and personal sectors. For at least six years, the business has been the most valuable brand in Canada. Additionally, it is presently the biggest bank in the nation. During the tech boom of 2020 and 2021, it lost the distinction of being Canada’s largest business to Shopify. But at the beginning of 2022, with a market value of more than $175B, it reclaimed its throne, as it had been doing for a very long time.
Revenue as well as earnings have grown by a factor of two on average over the last five years. Not shabby for the biggest business in the nation. RBC has been one of the top-performing dividend payers in the country, with a 4% dividend yield and 12 years of dividend growth.
1.7 Canadian Natural Resources
We haven’t shown a cyclical choice in our ranking of the best Canadian stocks to buy in a very long time. There is no denying, however, that oil is on the rise, and it is probable that high prices for crude will continue throughout 2023 and beyond.
And if we were seeking to invest in oil, we would be interested in purchasing the most reputable North American producer. That supplier, in our opinion, is Canadian Natural Resources (TSE: CNQ). You’ll struggle to find a big oil stock that has performed better over the past ten years than Canadian Natural Resources.
However, that does not necessarily imply that its performance has been favourable, as the oil and gas industry has historically offered pitiful results. The most effective of a bad group, though. Additionally, given the resurgence of crude, it may recover and rank among the TSX Composite Index’s top-performing stocks.
Recession is the primary worry for 2023 and beyond. We would probably shortly experience more volatility if this were to occur. We seek businesses that can continue to generate income and make profits in the event of a downturn in the economy.
And Loblaw is probably the best company in the nation to do this. (TSE:L). One of Canada’s biggest retailers of general merchandise, prescription drugs, and groceries, Loblaw also operates the greatest number of stores in the province of Ontario and has sizable operations in British Columbia and Quebec.
Among the most important grocery brands are Loblaw, No Frills, as well as Maxi. In addition, its 2014 purchase of the retailer Shoppers Drug Mart gave rise to its pharmaceutical activities. Humans require food, regardless of the state of the economy. We cannot live without food and water. And when circumstances are tough, we have a tendency to be frugal. The clear advantage that Loblaw has over other supermarkets like Empire Company as well as Metro, especially its No Frills brand, is that it has a much greater “discount” element to it. Even though their goods overlap somewhat, a competing bargain store like Dollarama will be unable to capture a sizable portion of the market.
1.9 TFI International
When the COVID-19 pandemic was at its worst, Stocktrades Premium chronicled TFI International (TSE: TFII) in great detail. Off those lows, the business has more than quadrupled.
TFI is a transportation and trucking firm. The business works in four divisions: Logistics, Less-Than-Truckload, Truckload, and Package and Courier. It employs 31,000 people and operates more than 500 facilities across North America.
The company operates in both Canada as well as the United States. In 2021, after it recently acquired UPS’s Less-Than-Truckload freight division, the US will account for nearly 75% of its revenue.
So why, at Stocktrades Premium, were we so bullish on TFI throughout the pandemic, and why are we nevertheless bullish on them in spite of the significant price rise in 2022 and 2023?
TFI International’s stock had been not exempt from the sell-off while there was widespread fear of selling. In March 2020, the stock fell precipitously and reached the $24 range. When 2023 comes around, the stock is currently valued at close to $170. Because of its excellent financial standing, the company set out to discover struggling businesses.
It is a lot, yes. Alain Bedard, the CEO, was extremely occupied putting a strong balance sheet to use. TFI took benefit of the circumstance and purchased assets at a discount, demonstrating the management’s skill and positioning the business to perform well for a long time to come.
Additionally, it will surely promote growth as new acquisition synergies begin to bear fruit. The UPS Freight acquisition is a paradigm changer for the company. As previously stated, TFI International’s focus will now be more on US-based business than it was in the past, when most of its income came from Canada.
TFI International acquired UPS Freight at a breakeven point, with profits of around 1%. Management has indicated that margins will be increased to 10%, resulting in significant revenue and profit growth.
Profit growth ought to enable TFI International to keep increasing its dividend. The business has a 12-year streak of dividend growth and has increased dividends at a 9.9% annual rate over the past five years.
The popularity of defensive stocks has greatly increased in the electrical current economic environment. Dollarama is one of the most well-known consumer defensive companies in the nation. (TSE: DOL).
The business offers a wide selection of general merchandise, seasonal goods, and daily consumer goods, all at affordable set price points. The majority of the company’s product options are made up of both general merchandise as well as consumer goods.
The business has stores all over Canada, most of which are placed in convenient areas like big cities, medium-sized cities, as well as small towns. It is ideal for Canadians seeking to save money in leaner economic times due to its wide exposure and affordable product base. And this has unquestionably been the case lately, as the business continues to grow without showing any indications of slowing down, in spite of many other retailers issuing warnings about product backlogs as well as margin impacts.
Despite warnings from many retailers about sluggish development, Dollarama is anticipated to maintain double-digit growth in 2023. Consumer action is not slowing down, according to it. Even the average basket price is higher than it was prior to the pandemic, indicating that many customers may be choosing Dollarama over other shops for necessities. According to analysts, the company’s sales and earnings will increase at a double-digit rate in both Fiscal 2023 as well as Fiscal 2024.
The stock is, in my view, about fully valued as of this writing. But suppose it keeps doing well while other retailers struggle. In that situation, prospective investors who are looking for a retailer that will be safe during a recession might be even more interested in Dollarama.
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Queries and Answers
Some of the most asked questions regarding the topic “Best stock to buy right now in Canada” are listed below:
1. Who is the world’s best market trader?
The New York Stock Exchange (NYSE) is the world’s largest stock exchange and a well-known stock exchange in the United States. It is situated at 11, Wall Street in New York City.
2. What is the name of the stock market in Canada?
The Toronto Stock Market (TSX) is a Canadian stock market-based in Toronto, Ontario.
The Toronto Stock Exchange (TSX), established in 1861, is Canada’s largest stock exchange, with more than 1,500 publicly traded companies, including those in the power, mining, internet, and real estate sectors among.
3. What is the Canadian stock market in short?
The Toronto Stock Exchange (TSX) is a stock exchange based in Toronto, Ontario, Canada. The Toronto Stock Exchange (TSX), founded in 1861, is Canada’s largest stock exchange, with over 1500 publicly traded stocks in industries such as electricity, mining, the internet, and real estate.
4. Is it legal for me to offer it to Indian customers from Canada?
During the global pandemic, many Indians turned to the Internet for shopping. Canadian companies are able to market a range of products to Indian consumers through e-commerce platforms, preventing the costs and complexities associated with maintaining physical stores in local markets.