It has been a solid year so far for TSX stocks. The Canadian index is up 8.7% year to date. Frankly, many of Canada’s plentiful value stocks (banks, energy, materials) have been experiencing a second life and seeing strong gains. While it may be harder to find good value these days, there are still some great Canadian business on the TSX to buy today.
Beyond valuations, search for companies that have good balance sheets, smart managers, and tailwinds that will support years of growth. If you got a few thousand dollars, here are three top TSX stocks you could consider buying today.
A lesser-known TSX tech stock
Calian Group (TSX:CGY) is a TSX technology stock that many Canadians have probably yet to hear of. It is a behind-the-scenes kind of business that make for a great value investment. It creates technologies and services for institutional clients like the Canadian military, NATO, and the Canadian Space Agency. Cool, right?
Calian recently completed a $79 million equity offering. Consequently, the stock is trading down 13% since the start of March. While I am not a huge fan of share dilution, I believe Calian sees large opportunities for acquisition growth ahead. At least its balance sheet is primed for growth here.
Already in 2021, it has made some very interesting acquisitions in satcom, cyber security and digital healthcare. Likewise, this company see significant opportunities outside of Canada, particularly in Western Europe. While this TSX stock pays a 1.9% dividend, its focus is growth in each of its core segments. Compared to international peers, this stock is relatively cheap. It is an attractive buy here.
A renewable power stock
Brookfield Renewable Partners (TSX:BEP-UN)(NSYE:BEP) is another TSX stock that is an ideal core holding for Canadians. It is one of the world’s largest publicly-listed pure-play renewable power producers. It produces 20,000 MW of power capacity. While it has a wide mix of solar, wind, distributed generation, and storage, its crown jewels are its hydro power assets. Hydro assets have a very long life and are irreplaceable in the consistency and scale of power they produce.
As a result, BEP always trades at a premium to its peers. However, over the past few months, the stock has pulled back. Now, looks like a great time to add a position. It has a large growth/development pipeline with over 18,000 MW of future capacity.
The company is well managed and is able to grow anywhere there is attractive value-add opportunities. If you like a nice 3% dividend and want to help global decarbonization, this is a great TSX stock to own.
A TSX healthcare stock
A final TSX stock that looks like a great buy today is VieMed Healthcare (TSX:VMD)(NYSE:VMD). If you think home healthcare is a trend to stay, then this is a great stock to own. VieMed provides in home care and respiratory equipment for people with chronic respiratory diseases. While these people are sick, they do not necessarily need to be in hospital, where it is very costly on the healthcare system to care for patients.
VieMed helps free up the healthcare system by providing in home support to patients. Patients gain because they are home, closer to loved ones, and more comfortable. VieMed is integrating new technology, service platforms, and tele-health into its business platform. This should make its service more available to clients.
Currently, it is targeting 20-30% organic growth per year. This TSX stock has a cash-rich balance sheet, a large addressable market, and opportunities for growth internally and by acquisition. It looks really attractive today.
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 Robin Brown owns shares of Brookfield Renewable Partners, Calian Group Ltd., and Viemed Healthcare Inc. The Motley Fool owns shares of and recommends Viemed Healthcare Inc. The Motley Fool recommends Calian Group Ltd.