4 Momentum Canadian Stocks to Buy Right Now

These four Canadian stocks have outperformed the broader equity markets this month. Will the uptrend continue?

| More on:
Upwards momentum

Image source: Getty Images

Boosted by investors’ optimism over demand recovery and economic expansion, the S&P/TSX Composite Index was trading close to its record highs at the close of Friday. Meanwhile, the index is up 10.3% for this year. Amid the investors’ optimism, here are four Canadian momentum stocks that you can buy right now for higher gains. These stocks have outperformed the broader equity markets this month.

Lightspeed POS

Amid the falling bond rates and better-than-expected job numbers in the United States, technology stocks have regained momentum. Lightspeed POS’s (TSX:LSPD)(NYSE:LSPD) stock price has increased by 14.6% this month. However, it is still down 13.7% from its 52-week high, offering an excellent buying opportunity given the expanding addressable market and its innovative product offerings and aggressive acquisition strategy.

Amid the pandemic-infused restriction, more small- and medium-scale businesses are shifting towards omnichannel solutions. Along with this transition, the secular shift towards online shopping has created a long-term growth potential for Lightspeed POS. The company is also focusing on acquisition to grow its customer base and geographically expand its footprint. It had recently raised approximately US$676 million, which could support its growth initiatives and also fund its future acquisitions.

Dye & Durham

Driven by optimistic investors’ sentiments, Dye & Durham (TSX:DND) is trading 12.7% higher for this month. Meanwhile, I believe the uptrend could continue, given its growing diversified blue-chip customer base, high customer retention rate, and accretive acquisitions. The reopening of the courthouses and the uptick in economic activities could drive the demand for the company’s services.

Meanwhile, Dye & Durham has also raised capital through new equity offerings and debt facilities. Combining the newly raised capital with its cash in hand, the company has over $1 billion of liquidity, which could support its acquisition pipeline. Further, the company’s management has set a promising outlook for the next two years. The management expects its revenue and adjusted EBITDA to come in at $340 million and $200 million in fiscal 2022, respectively. So, the company’s growth prospects look healthy.

Kinross Gold

My third pick would be Kinross Gold (TSX:K)(NYSE:KGC), which has moved up by 10.8% since the beginning of this month. The increase in gold prices amid falling bond yields, weak U.S. dollar, and the Fed’s dovish comments have driven Kinross Gold’s prices higher. Despite the rise, the company is still trading close to 32% lower than its 52-week high. Amid the rising COVID-19 cases worldwide, the implementation of lockdown in some parts of Europe and Asia, and rising volatility, I expect gold prices to rise further, benefiting Kinross Gold.

Apart from rising gold prices, the improving operating metrics could also support Kinross Gold’s stock price growth. The company’s management expects its production to increase by 20% over the next three years, while its operating costs could fall amid increased production from low-cost mines. The rising production, lower production costs, and higher gold prices could drive Kinross Gold’s financials in the coming quarters.

Cargojet

After delivering an impressive return of over 107% last year, Cargojet (TSX:CJT) was under pressure this year, with its stock price correcting over 24% in the first three months of trading. However, the stock has witnessed strong buying this month, with its stock price rising over 8%. The uptrend in the company’s stock price could continue, given the e-commerce growth, strengthening of its balance sheet, and the expansion of its partnership with Amazon.

Further, most of its clients have signed long-term contracts, shielding Cargojet’s financials from price and volume fluctuations. Its unique overnight delivery service to major Canadian cities and growing fleet size bodes well with its growth prospects. Its valuation also looks reasonably attractive, with its forward price-to-earnings multiple standing at 29.8.

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.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. David Gardner owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon and CARGOJET INC. The Motley Fool owns shares of Lightspeed POS Inc and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.

More on Tech Stocks

Online shopping
Tech Stocks

Why Shopify Stock and Other Tech Stocks Jumped on Tuesday

Shopify (TSX:SHOP) stock and others started climbing on Oct. 4, but will the rise continue or fall back?

Read more »

healthcare pharma
Tech Stocks

2 Top TSX Tech Stocks to Buy in October

TSX tech stocks have been trampled in 2022. Yet, here are two top stocks on my buy-list that could have…

Read more »

Growing plant shoots on coins
Tech Stocks

2 TSX Growth Stocks I’d Buy and Hold Forever

Investors can buy these growth stocks at significant discount and benefit from the steep recovery in their prices.

Read more »

A stock price graph showing declines
Dividend Stocks

Here’s Why I’m Confident About Investing Through the Down Market

There is no bear market in history that has not been followed by a bull cycle. Rather than fret over…

Read more »

TFSA and coins
Tech Stocks

How to Easily Turn a $10,000 TFSA Into $100,000

Canadian tech stocks such as Shopify and Magnet Forensics can help TFSA investors deliver outsized gains in the upcoming decade.

Read more »

TSX Today
Tech Stocks

TSX Today: What to Watch for in Stocks on Wednesday, October 5

The ongoing October relief rally in TSX stocks could continue today, underpinned by a recovery in commodity prices.

Read more »

close-up photo of investor Warren Buffett
Dividend Stocks

The Best Warren Buffett Stocks to Buy With $300 Right Now

One way to choose good stocks to invest in is to see what investors like Warren Buffett, with a time-tested…

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Stocks for Beginners

3 TSX Stocks You’ll Wish You Bought at These Prices

Stocks are currently trading at unbelievable discounts. Here are three TSX stocks you’ll wish you had bought at these prices!

Read more »