Even if the volatility has pulled the markets down recently, they do not look substantially weak. If you are a long-term investor, these short-term gyrations should not bother you. Here are three top TSX stocks to bet on for the long term.
Intact Financial Corporation
A leading property and casualty insurer Intact Financial (TSX:IFC) stock is my first pick for long-term investors. It is up a decent 35% in the last 12 months and still looks attractive from the valuation perspective.
Intact has seen consistent financial growth in the last several years with a controlling market share in the property and casualty insurance space. In 2020, its revenues grew by a decent 10%, while net income jumped a remarkable 43% year-over-year.
Intact stock currently yields 2.1%, lower than TSX stocks at large. Though it is not among the top-yielding stocks, investors seeking long-term stability can consider IFC stock. The company has managed to increase its dividends for the last 16 consecutive years.
Intact Financial stock has delivered an average annual total return of 10% in the last 15 years, notably beating the TSX Composite Index.
Restaurant Brands International
It is one of the top recovery plays of 2021. Although QSR stock might see some weakness in the short term amid the third wave and growing lockdown fears, I think it is poised for a decent growth post-pandemic. Its large global presence, top-performing brands, and scale will likely play well in the long term.
QSR stock yields 3.3% at the moment. Despite a mediocre yield, it is an appealing investment proposition from a total return perspective. It has returned more than 90% in the last five years.
As restrictions wane and consumer spending normalizes, QSR will likely see some of the fastest recoveries. The stock is still 20% lower than its record levels of $106 in August 2019. Consider QSR stock if you are betting on the post-pandemic recovery.
Canadian tech stocks calmed a bit in March after rallying for months. Lightspeed POS (TSX:LSPD)(NYSE:LSPD) is one of them. The top growth stock has fallen almost 25% since late February. However, that does not change its growth prospects. Its fundamentals remain intact and present an attractive opportunity for discerned investors.
Lightspeed has seen encouraging revenue growth in the last few quarters. It provides omnichannel commerce-enabling platforms for small- and medium-scale businesses, mainly in the retail and hospitality sectors.
Its upbeat revenue growth will likely continue driven by its Upserve and ShopKeep acquisitions. This would expand its customer base and open up significantly higher growth opportunities in the US.
LSPD stock is up a massive 320% in the last 12 months, notably beating TSX stocks at large. It looks overvalued at the moment. However, the premium valuation is justified due to its higher revenue growth prospects.
Before you consider Lightspeed POS, you may want to hear this.
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The online investing service they've run since 2013, Motley Fool Stock Advisor Canada, has beaten the stock market by over 3X. And right now, they think there are 10 stocks that are better buys.
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 Vineet Kulkarni has no position in any of the stocks mentioned. The Motley Fool owns shares of Lightspeed POS Inc. The Motley Fool recommends INTACT FINANCIAL CORPORATION and RESTAURANT BRANDS INTERNATIONAL INC.