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3 Top TSX Stocks to Buy in December

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Do you plan to buy a few TSX stocks in December? Here are three TSX stocks that you might want to add to your shopping list.

Air Canada

The pandemic had led many governments around the world to impose travel restrictions, which have weighed heavily on airlines, including Air Canada (TSX:AC). Its passenger volumes fell 96% and 88% year over year in the second and third quarters, respectively. The company also burned $2.54 billion in cash over the same period.

Airlines are asking for federal help, which includes low-interest loans or reduced airport fees. Although Air Canada’s financial situation is healthy, federal assistance could greatly benefit the company.

Plus, a vaccine could increase passenger demand and prompt governments to lift travel restrictions, thereby boosting its lucrative international travel. Encouraging news about the vaccine has already led Air Canada stock to soar by about 60% this month. Despite the rise, the company is still trading about 50% lower than its 52-week high, which is proving a great buying opportunity.

With the possibility of a bailout underway and a promising vaccine, things don’t look too gloomy for the beaten-down airline stock. While the recovery may be easier said than done, the rally in Air Canada stock might be far from over.

Aritzia

Aritzia (TSX:ATZ) was one of the top TSX stocks I’d suggested investors buy in November. I believe it’s still a top stock to buy in December.

Aritzia was on an impressive growth streak before the pandemic hit the entire retail industry. But since Aritzia is a robust company with strong consumer loyalty, the stock has weathered the storm very well. The retailer stock is up more than 2% since the start of the year.

While Aritzia had to close stores during lockdowns, online sales helped to maintain the company afloat. Its e-commerce business grew by 82% during the second quarter. Overall sales will increase in the next quarters, as the fashion retailer has reopened all its stores. And as the Christmas season is the most important sales period, we’ll likely see a boost in sales in the next quarter.

Aritzia is in great shape not only to weather the storm but also to potentially increase its market share through the pandemic.

Aphria

Aphria (TSX:APHA)(NASDAQ:APHA) stands out from other pot companies, as it remains the only consistently profitable large-cap Canadian producer.

This pot company is not only dominating the Canadian recreational and medical cannabis markets but is also generating strong sales from overseas. Through its acquisition of CC Pharma, the company has been able to tap into the German cannabis market and should see further growth potential in Europe.

Aphria has now found its entrance into the U.S. market. The Canadian cannabis manufacturer completed the acquisition of Atlanta-based SweetWater Brewing Company earlier this month for around US$300 million. The transaction not only gives it access to a solid distribution network in businesses, bars, and restaurants in the United States, but the company will also be able to sell certain products of its new subsidiary in Canada.

Aphria has so far maintained a rock-solid balance sheet, but it needs to expand to continue growing. If Aphria can grow revenues and establish brand recognition in the United States market, this will benefit the company for years to come. Aphria stock has soared by more than 4% year to date.

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Fool contributor Stephanie Bedard-Chateauneuf has no position in any of the stocks mentioned.

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