3 Top TSX Stocks to Buy in December

Air Canada (TSX:AC), Aritzia (TSX:ATZ), and Aphria (TSX:APHA)(NASDAQ:APHA) are three top TSX stocks to buy in December.

| More on:
edit Colleagues chat over ketchup chips

Image credit: Photo by CIRA/.CA.

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.

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

More on Cannabis Stocks

Worker tags plants at an industrial cannabis operation
Cannabis Stocks

Can Canopy Growth Stock Finally Recover in 2024?

Down 98% from all-time highs, Canopy Growth remains a high-risk investment in 2024 given its weak fundamentals.

Read more »

A close up image of Canadian $20 Dollar bills
Tech Stocks

3 No-Brainer Stocks to Buy With $20 Right Now

These three stocks are easy buys for those who don't have all that much to spend, and want long-term growth…

Read more »

Pot stocks are a riskier investment
Cannabis Stocks

Slow Burn: Is Aurora Cannabis Finally a Good Buy in June?

One of the benefits of choosing from some of the most beaten-down market segments like cannabis is that even a…

Read more »

Caution, careful
Cannabis Stocks

I Wouldn’t Touch This TSX Stock With a 60-Foot Pole

I wouldn't touch Canopy Growth Corp (TSX:WEED) stock with a 60-foot pole.

Read more »

edit Cannabis leaves of a plant on a dark background
Cannabis Stocks

Why This Little-Known Cannabis Stock Could Double in 2024

This cannabis stock has already doubled this year since 52-week lows and could easily rise that much once more.

Read more »

Bad apple with good apples
Cannabis Stocks

1 TSX Stock I Wouldn’t Touch With a 420-Foot Pole

Down 87% from all-time highs, Cronos Group stock is a still a high-risk investment for long-term shareholders in 2024.

Read more »

A cannabis plant grows.
Cannabis Stocks

Canopy Growth: Buy, Sell, or Hold?

Canopy Growth (TSX:WEED) stock should make a killing on U.S. expansion, but investors will need to be very patient.

Read more »

Marijuana plant and cannabis oil bottles isolated
Energy Stocks

3 Canadian Value Stocks to Buy Right Now

Undervalued Canadian stocks such as Secure Energy should be part of your shopping list in May 2024.

Read more »