3 Top Stocks to Buy and Never Let Go

Looking for a value investment? If so, Canadian Utilities Limited (TSX:CU), Toronto-Dominion Bank (TSX:TD)(NYSE:TD), and Open Text Corporation (TSX:OTC)(NASDAQ:OTEX) are prime options.

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As long-term investors, we are always on the lookout for high-quality companies whose stocks are trading at discounted levels. Well, I have come across three very attractive options from three different industries, so let’s take a quick look at each to determine if you should buy one of them today.

1. Canadian Utilities Limited

Canadian Utilities Limited (TSX:CU) is one of the largest utilities and energy companies in North America.

At today’s levels, its stock trades at just 17.1 times fiscal 2015’s estimated earnings per share of $1.88 and only 14.6 times fiscal 2016’s estimated earnings per share of $2.21, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 17.9.

I think Canadian Utilities’s stock could consistently command a fair multiple of at least 18, which would place its shares around $40 by the conclusion of fiscal 2016, representing upside of more than 24% from current levels.

In addition, the company pays a quarterly dividend of $0.325 per share, or $1.30 per share annually, which gives its stock a 4% yield.

2. Toronto-Dominion Bank

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is the largest bank in Canada with approximately $1.1 trillion in total assets.

At today’s levels, its stock trades at just 10.6 fiscal 2016’s estimated earnings per share of $4.83 and a mere 10 times fiscal 2017’s estimated earnings per share of $5.15, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 13.1.

I think Toronto-Dominion’s stock could consistently command a fair multiple of at least 13, which would place its shares around $67 by the conclusion of fiscal 2017, representing upside of more than 30% from current levels.

Also, the company pays a quarterly dividend of $0.51 per share, or $2.04 per share annually, which gives its stock a 4% yield.

3. Open Text Corporation

Open Text Corporation (TSX:OTC)(NASDAQ:OTEX) is one of the world’s leading providers of enterprise information management.

At today’s levels, its stock trades at just 12.7 times 2016’s estimated earnings per share of US$3.56 and only 12.1 times fiscal 2017’s estimated earnings per share of US$3.73, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 27.2.

I think Open Text’s stock could consistently command a fair multiple of at least 15, which would place its shares around $56 by the conclusion of fiscal 2017, representing upside of more than 24% from current levels.

In addition, the company pays a quarterly of US$0.20 per share, or US$0.80 per share annually, which gives its stock a 1.8% yield.

Should one of these stocks be a core holding in your portfolio?

Canadian Utilities, Toronto-Dominion Bank, and Open Text Corporation represent three of the best long-term investment opportunities in their respective industries. All Foolish investors should strongly consider initiating positions in one or more of them today.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joseph Solitro has no position in any stocks mentioned. The Motley Fool owns shares of Open Text. Open Text is a recommendation of Stock Advisor Canada.

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