The volatility of the stock market is a perpetual rollercoaster that is riddled with innumerable peaks and troughs, despite the most favourable of circumstances. If your interests lie in discerning the best stocks to buy right now in Canada, then fret not, for this blog exists to extend its aid.
As a result of plummeting sales, certain stocks have experienced an unprecedented decrease, whereas others have catapulted to unprecedented heights, thereby creating a favourable environment for the finest Canadian stocks to materialize. Canadian investors must be cognizant of the economy’s current state of affairs when electing to purchase stocks, as the market can be quite capricious.
One potential strategy would be to invest in the stocks of enterprises that have experienced a momentous decline, as the economy is likely to rebound, thus leading to a substantial return on investment. Conversely, if you believe that enterprises that are currently experiencing consistent growth will continue to do so and attract long-term investors, then investing in them would be an astute decision.
This blog is equipped with an arsenal of information concerning the most lucrative Canadian stocks to purchase at present.
1. Best Stocks to Buy Right Now in Canada
1.1. Parkland Fuels
A veritable tour-de-force in the world of speedy petroleum supply and top-tier convenience store operation, one cannot overlook the prowess of this independent fuel retail provider in both Canada and the US.
Bursting onto the scene with its rapid-fire expansions and acquisitions, the majority of this juggernaut’s expansion has been fueled by a series of strategic purchases, with the most recent addition being Chevron’s downstream fuel company in Canada, securing its position as the country’s sole distributor of these coveted fuels.
But let’s not forget the true ace up its sleeve, which comes in the form of an expansive distribution network that spans far and wide, catering to a diverse range of clients across North America.
And while the pandemic did manage to throw a wrench into the mix, causing a few hiccups along the way, this indomitable entity has more than proven its mettle and resilience, bouncing back with a vengeance and boasting a market cap that cements its place among the top Canadian companies that are ripe for investment in the here and now.
Tracking the trajectory of this mighty behemoth, we can see that the aggregate stock price has experienced only the slightest of fluctuations since the start of 2021, hovering steadily at around the $32.2 mark. So if you’re looking to get in on the action and join the ranks of savvy investors, there’s no time like the present to dive headfirst into the world of Parkland Fuels.
1.2. Power Corporation of Canada
This esteemed management and holding business named Power Corporation of Canada company operates in North America, Europe, and Asia and this company offers financial services.
One of the biggest independent enterprises, it focuses on platforms for alternative investments as well as businesses related to insurance, retirement, wealth management, and investments.
An in-depth analysis reveals that the mean average stock value has been increasing since October 2020. These figures come to a respectable $33.3 as of February 2022. This company stands out for a number of reasons, including both its overall performance and its capacity to produce dividend growth in the midst of a global financial crisis.
With its strong returns on equity, it now rates as one of the top Canadian companies for investing in and it has the best Canadian dividend stocks.
1.3. Bank of Montreal
The Bank of Montreal is undoubtedly one of the top Canadian banks for investing in right now because of its lengthy history and steady customer. It has consistently maintained its momentum and cemented its place in line with its rivals throughout the years.
Private and business insurance, credit cards, mortgages, and loans are its core areas of emphasis. According to statistics, the aggregate stock price has steadily climbed since May 2020, reaching an astounding $118.2 in February 2022, despite the economic downturn brought on by the COVID-19 epidemic.
It appears doubtful that there will be unpleasant shocks at this point because there haven’t been any significant value declines throughout what is perhaps the worst financial crisis in history.
BMO has also put in place a strategic contingency strategy to reduce risks. Because of this, they are eventually in a very advantageous position to handle any future losses and conflicts, leading to some of the top Canadian stocks.
1.4. Shaw Communications
Another market-leading provider of TV, phone, and internet access is Shaw Communications. In a period when staying in contact with others is more crucial than it has ever been, Shaw Communications offers dependable and secure connections to meet the needs of both small and big enterprises.
Without question, technology is a vital part of our daily life, both for leisure and work-related tasks. Shaw Communications is one of the greatest stocks to purchase in Canada right now because of the need for such services, which is unlikely to decline in the future.
This is supported by official statistics, which show that intrinsic dividend stock price has fluctuated at a low level ever since spiking in March 2021.
The mean average stock value was $30.2 in February 2022. In the upcoming years, it would be great if many investors anticipate thus that consistent rates will persist.
1.5. Lithium Americas Corp
One of the leading low-cost suppliers of lithium-based batteries for electric cars is Lithium Americas Corp. The majority of its products are produced by two of its large ongoing projects, which are both based in the United States and Argentina.
The corporation recently announced ambitions to grow by adding three more production locations, albeit the precise location is yet unknown.
Since October 2020, the mean stock value has been rising steadily, hitting a high of $52.2 in November 2021. The median price did experience a little decline in the months that followed, reaching a low of $32.7 during February 2022.
In any event, Lithium Americas Corp is still important and continues to provide some of the top Canadian stocks to purchase at the moment. Investors shouldn’t be concerned about its stock value declining much in the near future if you take into account its impending growth and future development plans.
1.6. Descartes Systems Group
This multinational company serves over 20.000 clients globally with supply chain productivity and cloud-based logistics software.
In plain English, it’s a software startup that helps businesses expand their network reach by assisting manufacturers in delivering their products to shop displays or the front door.
It’s no secret that modern supply chains and commerce are accelerating at an unprecedented rate to meet customer demand. Descartes provides a practical means of appeasing clients as well as adapting to the quickly shifting regulatory and business situations.
Descartes Systems Group stocks haven’t seen any notable gains or losses in terms of numbers, only a small shift in their overall worth. At $71.4, the current price puts it among the top stocks in Canada to keep an eye on in the upcoming years.
1.7. Bell Canada Enterprises
Bell Canada Enterprises is the biggest telecommunications provider in Canada, offering TV, phone, and internet providers to every residence in the nation.
Generally speaking, it is wise to invest in businesses that offer necessary services since those services will constantly be in demand, regardless of the situation. It’s quite doubtful if these stocks will decline anytime soon given the hybrids or work-from-home setups that the majority of individuals have chosen recently.
If you’re interested in the details, the intrinsic market share of BCE’s stocks increased significantly as of 2021 before dropping to $71.15 by February 2022.
These figures are anticipated to increase going forward because the majority of us depend on reliable network connections almost constantly. As a consequence, BCE has emerged as one of the top Canadian growth companies right now.
1.8. Royal Bank of Canada
Royal Bank of Canada is a multinational company that provides services in more than 40 different nations. It specializes in market capitalization, asset management, insurance, and financial management for both people and companies.
When all of this is taken into account, RBC is deserving of a place among the best Canadian growth stocks now trading. The bank has seen a continuous increase in its total revenue growth and profitability despite the economic downturn that began in March 2020.
Also, there has been a large increase in stock value, which increased about $54.4 just at the time to an outstanding $108.2 by February 2022. These statistics give important information about how the bank performs under pressure.
Because of its stringent controls that reduce the risks associated with financial downturns and reduced interest rates, the Royal Bank of Canada has been able to maintain reasonably stable stock prices. It’s undoubtedly one of the top Canadian firms to invest in given the long-term potential of such partnerships.
The Bank of Canada raised the interest rate to 4.25% on December 7, 2022, to cap off an exciting year. According to an updated prediction from Royal Bank of Canada (RBC) economists, the Canadian economy will experience a recession in the first quarter of 2023.
By mid-2023, the economy would see two-quarters of negative growth, as the bank originally projected in July. According to Claire Fan and Nathan Janzen analysts at RBC, the mean person’s purchasing power will decrease by almost $3,000 in 2023.
1.9. Transat A.T. Inc.
Investors should consider its stocks given that it is the top leisure airline in Canada. Transat A.T. Inc. has been able to compete with its rivals despite suffering a significant loss in stock value as a result of the various foreign travel restrictions and rules imposed by the epidemic.
The mean stock value has fallen from $16.18 to $4.58 since the world went into lockdown in mid-March 2020. These stats have quite a lot of promise even if they aren’t particularly encouraging.
In reality, given that individuals are gradually but certainly resuming their usual travelling patterns, they rank among the most potential Canadian growth companies.
Investors have high expectations for their Transat equities given the forthcoming summertime and the constant increase in consumer demand.
Shopify is the only platform you need to consider if you intend to launch and expand your company. With the help of this subscription-based service, you may create an online store and sell any sort of goods.
Depending on the cost, every subscription plan has a distinct set of advantages and extras. People have started purchasing the majority of their items online as off-again, on-again lockdowns have stopped them from going on regular shopping sprees.
It makes sense that Shopify is among the finest stocks to purchase right now in Canada given that it is essentially one giant shop that allows you to buy almost everything.
The Shopify stocks’ overall value has increased gradually but steadily since November 2018. In November 2021, it rose to a record-breaking high of $1.762. Stocks in Shopify have lately decreased marginally, reaching $1.217 by January 2022.
2. Variety of Sectors to Invest in Canadian Stocks
Popular Canadian stocks to purchase include those in technology and software, gold, natural gas and energy, and finance sectors, which account for large portions of the market. The technological industry in Canada is also expanding, and a few domestic stocks are potentially worthwhile investments.
2.1. Technology and Software Sector
Everything has changed as a result of the COVID-19 epidemic, including how we work, how we shop, and how our kids learn. Remote employment is becoming far more common as a new norm starts to take shape. In fact, Shopify, Canada’s top software provider, said that starting in 2020, it will operate exclusively online.
Businesses that offer business software and digital services are anticipated to have strong demand in this modern generation of remote access. These businesses are at the vanguard of the digital change taking place in the IT industry.
2.2. Gold, Natural Gas, and Energy Sector
The preferred investment during times of market turbulence is often gold and renewable energy stocks. It’s an excellent approach to diversifying your investment portfolio as well.
The greatest Canadian gold mining companies may be chosen from a variety of homegrown Canadian businesses. Stocks of energy infrastructure companies are a significant component of the Canadian stock market.
You might also think about Canadian natural resources stocks, renewable energy stocks, and gold exchange-traded stocks mostly in the gold and energy industries. The equities feature a broad portfolio of regulated renewable energy and utility assets, making gold stocks and energy stocks excellent for beginning investors.
2.3. Financial Sector
Investments in industries with a solid stock performance track record offer reasonable hopes for future returns. Finance is among the most resilient industries with the best-performing stocks.
Financial institutions like the Bank of Montreal, Canadian Imperial Bank, Royal Bank, Canadian National Bank, and Toronto Dominion Bank or Toronto Stock Exchange (TSX stocks) have thrived despite previous financial crises.
They can be consistent predictors of your stock portfolio because they have shown their long-term usefulness. The banks will continue operating despite the current financial pressures of possible failed mortgages and small company bankruptcy.
Particularly after the COVID-19 epidemic, you should have at least a portion of your investment in a sector that should be growing rapidly. Also, these companies provide dividends to owners, which serves as an additional inducement to buy.
3. Reducing Risk in Stock Investments
Since the stock markets are moving so quickly, determining the value of a firm can be challenging. You may determine whether a company is cheap and hence predicted to do better in the future using analyst reports.
Alternatively, a stock may be seen to be extremely overpriced after seeing a strong surge during the present crisis that may quickly level out. Check at how firms were performing before the COVID-19 epidemic.
Were their revenues solid, and were they well-positioned to distribute dividends? A corporation may well be better situated on the opposing end of the pandemic if it has solid fundamentals prior to the crisis.
Spreading out the investment over time is one way to reduce risk. Do you wish to invest all of your funds in the stock market at this uncertain time? Do you like to start small for the time being? The solution could be dollar-cost averaging. This entails making regular market investments of a certain sum of money.
Let’s use the example of having $24,000 that you wish to invest in the market. If you put aside $2,000 every month for a year, you will only lose a portion of the $24,000 investment if markets decline at some point in the next year. Also, your investment may have a recovery over a longer period of time than that of a year.
It pays to take the present economic difficulties into account while looking for the finest Canadian stocks to consider buying now. Although equities in the financial and energy sectors are always in demand, what industry or company might genuinely profit from the present market conditions?
The real estate sector made immediate promises. Real estate investment trusts (REITs), which have planned infrastructure projects from coast to coast, are a wonderful opportunity while the housing market receives a lot of attention.
Of course, the age-old piece of advice to diversify still holds true. Yet still, conduct research!)
4. Future of Canadian Stocks
The GDP is anticipated to increase on the median by 0.6% and 1.7% between 2023 and 2024 respectively. It is a smart idea to invest in certain Canadian shares for broader exposure even while American businesses like Amazon.com, Inc., Colgate-Palmolive Corporation, and PepsiCo, Inc., continue to draw investors’ attention.
In addition, a Bloomberg survey of 26 experts carried out in November 2022 anticipated that the beginning of 2023 will see the Gross Domestic Product undergo consecutive quarterly declines, which is referred to as a technical recession.
Next year, it is anticipated that the Canadian economy would decrease by an annualized 0.5 percent during the first quarterly period and 0.6 percent in the second. The majority of economists, according to the study, continue to believe that Canada will start growing again during the second half-yearly period of 2023.
5. Cons of Investing in Candian Stocks
The ability to commence with small deposits and progressively start building up the portfolio over time is one of the advantages of stock market investing. Small-cap or mid-cap firms can be attractive places to start investing in since they frequently offer more opportunities for development and the possibility for better returns.
Stocks have a crucial quality called liquidity, which makes them very simple to acquire and sell. When you want to buy or sell a stock, it is easy to find an enthusiastic buyer or seller because a competitive stock market suggests that there are numerous individuals who are interested in it.
On the other hand, less liquid assets, such as real estate, may sell more swiftly even though they may also take longer to sell due to the lower number of buyers and sellers.
5.3. Diversifying the Portfolio
You may diversify your portfolio by making investments in the stock market, which is one of the main advantages. As a result, your assets will likely consist of a wide range of various securities, including stocks, bonds, gold, real estate, and so on. All of them may provide various potential benefits, however, some of them may be more unpredictable than others.
5.4.Creating a Long-Term Wealth
Having stock market investments gives you the opportunity to steadily build your wealth, which is another advantage. This indicates that investing money in stocks or other assets will increase the worth of your property.
This can result in significant savings and increased financial stability over time. So, it aids you in achieving your objectives, such as retirement, children’s education, home construction, etc.
The most important thing to remember is to make good research before investing. There are multiple easy ways to buy stocks in Canada. The stock market is subject to rapid fluctuation. You won’t be able to predict the future or the way the markets will behave using a crystal ball.
Each stock has a certain amount of danger along with it but also has a big potential for development and profit. In any event, it’s wise to conduct your personal research ahead of time and speak with a financial expert to ensure that you’re making the best decisions for your specific circumstances.
Frequently Asked Questions
Q1. Are Foreigners allowed to purchase stocks in Canada?
Non-residents may purchase stocks in Canada through authorized brokers and through Canadian-domiciled stock exchange-traded funds (ETFs).
Q2. How Much Cash is Required to Buy Canadian Stocks?
Since many Canadian brokerage firms don’t really have account minimums, you may start buying stocks with just $1 if your broker enables fractional investing.
Q3. Can I Receive PR if I Invest in Canada?
The quick response is that you’re not investing in citizenship; rather, you are investing in a Canadian company.