The S&P/TSX Composite Index was down 34 points at the top of the noon hour on March 3. Canadian stocks have retreated marginally over the next two days after a hot start to the month. The energy and metals and mining sectors led the way on the TSX. Today, I want to look at three TSX stocks that belong in your portfolio for the long haul. These offer exposure to explosive sectors and high-quality companies.
Why this TSX stock is worth holding for the long haul
In September 2020, I’d discussed how Canadians could break into investing in the automation space. The effects of automation on society were one of the key points of interest for economists and policymakers in the late 2010s. In November 2019, Grand View Research projected that the global industrial automation and control systems market would achieve a CAGR of 8.6% from 2019 through 2025.
ATS Automation (TSX:ATA) is a top TSX stock to consider for those looking to invest in this space. This company provides factory automation solutions to a worldwide client base. Its shares have climbed over 55% year over year at the time of this writing. The stock is up 26% in 2021 so far.
The company released its third-quarter fiscal 2021 results on February 3. Revenues rose 1% from the prior year to $369 million. EBITDA nearly doubled to $49.7 million — up from $26.8 million in Q3 fiscal 2020. Order bookings climbed 18% year over year to $435 million.
ATS Automation boasts an excellent balance sheet and the company is on a strong growth trajectory. Canadians should look to stash this stock for the long term.
Kinaxis is well positioned for another banner year
Kinaxis (TSX:KXS) is set to release its final batch of 2020 results today. This Ottawa-based technology company offers supply chain solutions and operations planning software to customers around the world. Its cutting-edge software product has attracted top companies like Ford, Unilever, and Toyota Motors. Shares of Kinaxis have climbed 45% year over year as of early afternoon trading on March 3.
In Q3 2020, the company delivered SaaS revenue growth of 26% to $39.3 million. Meanwhile, total revenue increased 17% to $55.1 million. Gross profit jumped 10% to $36.5 million.
This tech company boasts an immaculate balance sheet. Moreover, it is on track for promising growth looking forward. This TSX stock is worth picking up on the dip this winter.
One more TSX stock to stash for decades
WELL Health (TSX:WELL) is a TSX stock in the healthcare sector that has erupted during the COVID-19 pandemic. I’d suggested that investors should scoop up this stock last month. Shares of WELL Health have shot up over 400% year over year.
At the end of 2020, the company said that revenues and profitability continued to accelerate in the fourth quarter. Telehealth has become the primary mode of health consultation during the pandemic. This has greatly bolstered WELL Health’s profits. Its recent acquisition of CRH Medical will also grant the company promising exposure to the U.S. market.
Here's another top tech stock to snatch up 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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends KINAXIS INC.