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Canadian Stocks: 2 Top Picks to Buy on the Next Pullback

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There are plenty of high-quality Canadian stocks you can own these days. The last year has shown that. Businesses across various industries have had to cope with an unprecedented global pandemic, and most have become stronger for it.

At the same time, many of these businesses have shown impressive resiliency and prudent management to weather the storm, so, naturally, their stocks have performed well, too.

Although there are plenty of high-quality companies capable of long-term investments, most stocks offer investors little discount, and some are even trading at a premium.

If you have a lot of cash that you don’t want to leave on the sidelines, you may want to consider some of these other top Canadian stocks to buy today.

However, if you’re willing to wait for some of the top Canadian stocks to own for long term, these are the two I’d be waiting to buy on a stock market pullback.

Rapidly growing renewable energy stock

There’s no question that green energy stocks offer superior long-term growth. Many of them have rallied considerably over the past year, as the growth in the industry only continues to accelerate.

Although several green energy stocks are attractive long-term investments, one of the very best is Northland Power (TSX:NPI).

Northland is a power generator with a rapidly growing renewable energy portfolio. The Canadian stock is up an impressive 72% since the start of 2020. The strong performance shows just how much investors respect the stock.

It has a promising pipeline of organic growth projects that should increase shareholder value consistently. Plus, management is planning on investing up to $20 billion over the next five years to grow the business.

In addition, management has also announced the intention to find high-quality acquisitions outside of just renewable energy generation. The company would also be interested in finding businesses in energy storage, renewable natural gas, or hydrogen.

These acquisitions could significantly increase what is already a rapidly growing portfolio of green energy assets. So, with such an extremely promising outlook, Northland is a top Canadian stock to buy on a pullback.

Top Canadian tech stock

In addition to Northland, one of the top Canadian stocks you should always be looking to buy on a pullback is Shopify (TSX:SHOP)(NYSE:SHOP).

Shopify is one of the best Canadian companies you can own. Often, the only criticism the stock gets is its astronomical premium. The company and its operations, however, have been so impressive that it’s hard to find any faults the company has.

Because Shopify is so high quality, it makes sense that it’s always trading at a premium. It also means that any time you can buy the Canadian tech stock on a pullback, you know you’re making an excellent long-term investment.

Over the past year, the growth in e-commerce has been rapid. It’s hard to imagine there’s much growth left in the sector. However, over the long term, there is still a tonne of potential.

It also helps that Shopify is so good at what it does. That’s actually one of the biggest factors in merchants switching to an online strategy. Not only does Shopify offer an impressive platform, but the tools and analytics it gives its customers help tremendously to grow these small- and medium-sized businesses.

So, although the Canadian tech stock gained more than 134% over the last year, it’s still a quality long-term investment. However, if you can wait to buy it at a discount, you’ll certainly be glad you did.

Bottom line

Shopify and Northland are among the best of the best when it comes to long-term Canadian stocks. These stocks have so much growth potential, you may even want to take a small initial position today if you don’t already own the stocks.

One thing is for sure, though; these are two of the top stocks I’m eager to buy in a market correction.

Don't wan't to wait for a market correction? Here are three of the top growth stocks to buy today!

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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 Daniel Da Costa owns shares of NORTHLAND POWER INC. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify.

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