3 Top TSX Stocks to Buy With $3,000 in April 2021

Despite the near-term challenges, long-term investors should continue to invest in fundamentally strong companies for solid returns.

| More on:
Target. Stand out from the crowd

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Despite the near-term challenges, long-term investors shouldn’t worry much and continue to invest in fundamentally strong companies for solid returns. Notably, top Canadian stocks have reversed some of their gains and are looking attractive at current levels. So, if you’ve got $3,000, consider buying these top TSX stocks right now.

Shopify 

So far, 2021 has been a mixed year for Shopify (TSX:SHOP)(NYSE:SHOP). While it is still trading in the green, it has receded from its peak of $1,900.58, reflecting the expected slowdown in the pace of shift towards the e-commerce platform amid the easing of lockdown measures and reopening of retail locations. 

I believe the spending on multi-channel commerce platforms could increase, despite the reopening of the economy, acting as a significant growth catalyst for the company. Shopify’s expansion of its shipment services, multiple marketing and sales channels, and growing adoption of its multi-currency payment platform suggests that the company remains well positioned to capitalize on the favourable industry trends. 

Furthermore, Shopify’s international expansion, new product launches, and operating leverage bode well for future growth, and the recent pullback in its stock signals a good buying opportunity for long-term investors. 

Bank of Montreal

Bank of Montreal (TSX:BMO)(NYSE:BMO) is among my top stock picks for 2021. The lender continues to impress with its solid financials and its ability to deliver profits amid challenges. Further, its stock is trading at a discount to peers, proving an excellent buying opportunity at the current levels.

Notably, Bank of Montreal’s adjusted net income jumped 26% year over year during the most recent quarter, and I expect the company to deliver solid EPS growth throughout 2021 on the back of higher loans and deposit volumes, improving efficiency, and lower provisions. I expect to see strong growth in its loans and deposits on the back of the continued strength in its core business and economic expansion. Meanwhile, its expenses are likely to go down, supporting its bottom-line growth. 

Besides the appreciation in its stock price, investors are expected to benefit from the bank’s ability to consistently generate high-quality earnings that drive its dividend payments. It has consistently paid dividends for 192 years and increased it by a CAGR of 6% in the last 15 years. Further, Bank of Montreal stock trades at a price/book value (P/BV) ratio of 1.4, lower than the peer group average.

Lightspeed POS

Strong secular industry trends, stellar demand for its digital offerings, and its growing scale make Lightspeed POS (TSX:LSPD)(NYSE:LSPD) a top long-term bet. Despite the reopening of the economy, I believe the shift of small- and medium-sized businesses towards the multi-channel payments platform could continue, acting as a strong growth catalyst for Lightspeed stock. 

Meanwhile, Lightspeed’s focus on product innovation and geographical expansion positions it well to gain from the elevated demand and drive its customer base. Recently, Lightspeed announced the launch of its omnichannel payments platform in the United Kingdom and Europe.  

Besides the strength in its base business, Lightspeed is expected to benefit from opportunistic acquisitions that are likely to solidify its competitive positioning in the high-growth markets. Lightspeed has made seven acquisitions since May 2019, which has driven its worldwide customer base, average revenue per user, and increased its global scale. Lightspeed stock has witnessed a healthy pullback, making it an attractive investment at current levels.

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 Sneha Nahata has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. The Motley Fool owns shares of Lightspeed POS Inc.

More on Tech Stocks

young woman celebrating a victory while working with mobile phone in the office
Tech Stocks

2 Beaten-Down Growth Stocks You’ll Be Happy You Own in 2032

Buying these oversold TSX stocks could make you rich by 2032.

Read more »

shopping online, e-commerce
Tech Stocks

Shopify Stock: Could it Reach $100 in 2022?

Shopify stock (TSX:SHOP)(NYSE:SHOP) has seen a huge uptick in daily trading volume, with shares up 28% in the last month.

Read more »

money cash dividends
Tech Stocks

Got $1,000? Buy These 4 TSX Stocks in Bulk!

These four TSX stocks are rebounding already, and offer a substantial opportunity for long-term Motley Fool investors.

Read more »

A stock price graph showing growth over time
Tech Stocks

3 Cheap Growth Stocks to Buy Right Now

Given their growth prospects and cheaper valuations, these three TSX stocks could deliver superior returns in the long run.

Read more »

Overhead shot of young adults using technology at a table
Tech Stocks

3 Stocks I’m Buying During a Tech Stock Correction

Tech stocks like Constellation Software (TSX:CSU) should be on your radar.

Read more »

financial freedom sign
Tech Stocks

$5,000 Invested in These 3 Stocks Could Make You Rich Over the Next 20 Years

Are you looking for stocks that could carry your portfolio over the next 20 years? Here are three top picks!

Read more »

potted green plant grows up in arrow shape
Tech Stocks

This Growth Stock Rallied 20% Yesterday, But it’s Still Cheap!

This growth stock is a great value. The 20% rally indicates the company has executed well and has potential for…

Read more »

Target. Stand out from the crowd
Tech Stocks

Down 70%, This Could Be the Best Stock-Split Stock in Canada to Buy and Hold Forever

This is arguably be the best stock-split stock to buy right now, as it has the potential to multiply your…

Read more »