3 Stocks to Buy Now Trading at 52-Week Highs

It can be hard to consider stocks trading at 52-week highs, but these three are perfect stocks to buy now ahead of even more growth.

| More on:
investment research

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

Investors these days want deals. They want growth stocks that are on a dip and due to explode. But this can cause a lot of investors to put blinders on solid companies that can produce stellar growth in the years to come. That comes with the territory when looking at stocks trading at 52-week highs. But even trading at high levels, I would still recommend these stocks to buy now.

Shipping stocks to buy now

TFI International Inc. (TSX:TFII)(NYSE:TFII) recently beat analyst expectations with its first quarter results. TFI stock has seen a surge in its transportation and logistics services thanks to the e-commerce boom. The company recently reported a 24% increase in revenue year over year for the first quarter, with net income up 20% during the same period.

But although there was an original pull back, that looks to have gone to the wayside. The company shot upwards and is trading at 52-week highs as of writing. However, it’s still one of the stocks to buy now. Despite trading at these heights, TFI stock is still considered cheap when you check out its valuations. The company trades at 1.9 times sales and 4.1 times book value.

Shares are now up 140% in the last year alone. Looking back a decade, shares are up 930% for a compound annual growth rate of 26%! On top of that, investors can lock in a 1.1% dividend yield that recently saw an increase.

Utility and renewables

Utilities will be needed pretty much no matter what happens in the market. That’s why these are great stocks to buy now. But above them all, I would choose Fortis Inc. (TSX:FTS)(NYSE:FTS). This stock is just shy of becoming the first Dividend King on the TSX. That means it will have raised its dividend each year for the last 50 years! That alone is enough reason to buy.

But true, the stock is trading near 52-week highs as of writing. But frankly, that’s because it’s in a strong industry with a strong growth strategy. The company brings in stable revenue from recurring contracts, uses it to pay dividends and acquire more businesses, then brings in even more revenue and starts it over again. So if you want stability and growth, this is the stock for you.

Shares are up only 4% in the last year, but up 150% in the last decade for a CAGR of 9.62%. This is a great stock to buy ahead of an economic recovery when the stock is likely to get dividend seekers back on board as well. Investors can currently lock in a 3.68% dividend yield.

Enbridge stock

Finally, there’s Enbridge Inc. (TSX:ENB)(NYSE:ENB) trading at 52-week highs, but still short of all-time highs. That makes now a great time to buy in and enjoy the further run to the top. Why is this happening? Future growth prospects. The oil and gas rebound is finally underway, and Enbridge stock looks to take advantage. But it’s the company’s underlying strategy that makes it one of the stocks to buy now.

Enbridge stock has decades of long-term contracts to support revenue and dividend growth. Yet it also has $10 billion in growth projects on top of that to bring on even more revenue growth. Analysts peg the company’s eventual share price to be worth around $60 per share. That leaves a potential upside of 27% as of writing.

And its valuations match, currently trading at an incredible 2.4 times sales and 1.8 times book value. Yet shares are up 21% in the last year, and 134% in the last decade for a CAGR of 8.89%. That makes this a 52-week high you’ll want to buy and hold forever, especially considering its 7.15% dividend yield.

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 Amy Legate-Wolfe owns shares of ENBRIDGE INC. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends FORTIS INC.

More on Energy Stocks

oil and natural gas
Energy Stocks

Better Buy: Suncor or Cenovus?

Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) have soared in the year-over-year period.

Read more »

A stock price graph showing declines
Energy Stocks

2 Cheap Canadian Stocks That Likely Won’t Be on Sale For Much Longer

These two Canadian stocks are close to returning to all-time highs. Don’t miss your chance to take advantage of these…

Read more »

canadian energy oil
Energy Stocks

3 Rising Energy Stocks to Buy as Oil Hits 6-Month Low

Three rising energy stocks are strong buys today as their upward momentum is likely to continue due to the tight…

Read more »

Retirement plan
Dividend Stocks

4 Stocks That Could Turn $100,000 Into $500,000 by the Time You Retire

Companies such as Brookfield Asset Management have the potential to consistently beat the broader markets and deliver stellar returns to…

Read more »

energy industry
Energy Stocks

Vermilion Energy (TSX:VET) Stock Set to Soar Higher After a Solid Q2 Show

Should you buy VET stock?

Read more »

Gas pipelines
Energy Stocks

Unpopular Opinion: Oil Stocks Are Still Good

Oil prices are coming down, but oil stocks like Suncor Energy (TSX:SU)(NYSE:SU) are still good.

Read more »

Super sized rock trucks take a load of platinum rich rock into the crusher.
Energy Stocks

3 Top Commodity Stocks for Passive Dividend Income

Commodity stocks like Cameco Corp (TSX:CCO)(NYSE:CCJ) offer dividend income.

Read more »

Group of industrial workers in a refinery - oil processing equipment and machinery
Energy Stocks

2 Oil Stocks Under $11 With 90-110% Gains So Far This Year

Two small-cap oil stocks with enormous gains year to date are likely to deliver far superior returns in 2022 versus…

Read more »