The Best TSX Stocks to Invest $5,000 in Right Now

I see top TSX stocks trading at reduced prices, providing an excellent opportunity for investors to park their money in some of the high-quality Canadian companies.

| 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 massive recovery rally, I see top TSX stocks trading at reduced prices, providing an excellent opportunity for investors to park their money in some high-quality Canadian companies. So, if you’ve got $5,000, put your money to work and invest in these top TSX stocks right now.


Leading cloud-based commerce platform provider Lightspeed POS (TSX:LSPD)(NYSE:LSPD) is an attractive long-term bet. The company is witnessing stellar demand for its point-of-sale (POS) systems amid a continued shift in selling models towards omnichannel platforms. Thanks to the favourable industry trends and strong demand, Lightspeed has managed to grow rapidly. It added new customers, expanded its products and solutions range, and acquired multiple POS platforms to expand its global reach.

Despite the economic reopening, I believe the demand for its omnichannel payments solutions is likely to remain elevated. Further, Lightspeed remains well positioned to capitalize on favourable industry trends and deliver stellar financial and operating performance. 

I believe its focus on expanding in existing and new markets, acceleration in payments and financial solutions business, and introduction of new modules are likely to drive its revenues and average revenue per user. Further, its strategic acquisitions are likely to drive its customer base, expand its presence in high-growth markets, and accelerate its growth rate. Notably, Lightspeed stock has declined by over 22% in three months, and I see this correction as an opportunity for buying


Shares of the subprime lender goeasy (TSX:GSY) is a must-have in your portfolio to outperform the broader markets by a significant margin. The company has consistently delivered stellar earnings growth since 2001, which has driven its stock higher and supported higher dividend payments. Notably, its adjusted net income grew at a CAGR (compound annual growth rate) of 31% since 2001. Meanwhile, its bottom line jumped 67% during the last reported quarter. 

I believe goeasy’s profitability could continue to grow at a breakneck pace in the coming years, reflecting strong growth in its loan portfolio, strong payments volumes, and expense management. goeasy’s focus on extending its product range, new delivery channels, strategic acquisitions, increased penetration of secured loans, bigger ticket size, and the large addressable lending market is likely to bolster its growth rate and drive its earnings.

The company has paid dividends for the past 17 years and increased it by a CAGR of 34% in the last seven years. The company pays a quarterly dividend of $0.66 a share and offers a decent yield of 1.8%.


Cargojet (TSX:CJT) delivered stellar returns in 2020 as the COVID-19 pandemic accelerated the demand for air cargo services. The company witnessed a significant increase in e-commerce demand, which boosted its revenues and margins. Despite its strong financial and operating performance, Cargojet has declined by more than 13% on a year-to-date basis on fears of expected normalization in demand. 

While the demand for domestic and international air cargo services could normalize, I expect Cargojet to continue to benefit from its long-term contracts and strong e-commerce demand. The company remains well positioned to benefit from its strong national network, speed to market, and next-day delivery capabilities to about 90% of the Canadian population. 

Cargojet’s leadership position, acceleration in e-commerce demand, price hikes, network optimization, cost management, and international growth opportunities are likely to drive its revenue and margins at a stellar rate and push its stock higher. 

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. The Motley Fool owns shares of and recommends CARGOJET INC. The Motley Fool owns shares of Lightspeed POS Inc.

More on Bank Stocks

Coworkers standing near a wall
Bank Stocks

Policy Rate: 2 More Hikes After July 2022 to Reach Neutral Level

The Bank of Canada might need three more rate hikes beginning in July 2022 to reach neutral levels.

Read more »

You Should Know This
Bank Stocks

75-Basis-Point Rate Hike? Here’s What it Means for Stocks

Aggressive rate increases dampen investors’ sentiment and send share prices tumbling, because the hikes can impact corporate earnings or profits.

Read more »

You Should Know This
Bank Stocks

TD Bank Stock Faces Challenge From U.S. Senate!

Toronto-Dominion Bank's (TSX:TD)(NYSE:TD) latest deal is being blocked by the U.S. Senate.

Read more »

question marks written reminders tickets
Bank Stocks

Is TD Bank (TSX:TD) or Royal Bank (TSX:RY) Stock a Buy?

Canadian banks appear oversold. Is this the right time to buy TD or Royal Bank stock?

Read more »

edit Close-up Of A Piggybank With Eyeglasses And Calculator On Desk
Bank Stocks

2 Top TSX Financial Stocks to Buy for a Retirement Fund During the Market Correction

These top TSX financial stocks now look oversold for a self-directed TFSA or RRSP portfolio.

Read more »

Growth from coins
Dividend Stocks

Dividends Aren’t Guaranteed, Yet 3 TSX Stocks Keep Raising Payouts

No company will guarantee dividend payments, but three TSX Dividend Aristocrats will not break their dividend-growth streaks.

Read more »

Bank Stocks

Should You Buy TD Bank (TSX:TD) Stock Now?

TD stock looks oversold. Is this the right time to buy?

Read more »

Bank Stocks

Passive Income: Buy Bank of Nova Scotia (TSX:BNS) Now

Looking to buy a big bank stock? Investors should look to buy Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) for income and…

Read more »