3 Stocks to Buy Now Trading at 52-Week Highs

These stocks to buy now may be trading at 52-week highs, but it’s likely only the beginning, as the economy continues to rebound in Canada.

| More on:
edit Colleagues chat over ketchup chips

Image credit: Photo by CIRA/.CA.

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

It might sound silly to look into stocks to buy now that are trading at 52-week highs. After all, don’t economists say “buy low and sell high?” Well, here’s the issue. If you’re investing in strong companies, it really doesn’t matter when you invest — as long you as invest!

But what I like about these stocks trading at 52-week highs is that each offers even more growth. The crash last year left shares at a low point that should be taken into account for today’s levels. You should therefore look more at valuations rather than share prices. That being said, having these stocks trade at 52-week highs means that while the TSX falls, these stocks continue to outpace the market.

So, let’s look at three stocks to buy now.

Royal Bank stock

Royal Bank of Canada (TSX:RY)(NYSE:RY) has rallied out of the crash and continues to trade at 52-week highs. Just as the other Big Six banks, it had a plan for a market downturn and saw revenue come back in quickly. Now, the largest bank by market capitalization is back on top when it comes to shares.

This proves why this is one of the stocks to buy right now. Even during a downturn, you can rest assured that Royal Bank stock will come out the other end at pre-crash levels. That’s happened twice in the last two decades at least. Meanwhile, you can look forward to a dividend yield that won’t be cut, even during a crisis. Today, you can pick up a 3.51% dividend yield.

Yet even trading at 52-week highs, Royal Bank stock is a deal, trading at 2.1 times book value. Shares are up 55% in the last year and 206% in the last decade. So, investors can buy up this stock in bulk and look forward to years of solid and stable growth.

Loblaw stock

A company that had to shift focus and came out the other end strong was Loblaw (TSX:L). Loblaw stock saw revenue drop due to the lack of people browsing its stores; however, revenue still came in, as everyone needs to eat. What’s also helped is the company’s investments. There are several companies under the Loblaw stock umbrella, including NoFrills and Shoppers Drug Mart. The company’s PC Optimum program also meant customers remained loyal.

As the country starts to reopen, with restrictions starting to wind down, shoppers will likely return. That means the company now has multiple ways of bringing in revenue, as it will likely continue its pandemic-focused revenue streams. Loblaw stock now trades at 52-week highs but is one of the stocks to buy now for this recovery.

Shares are up 13% in the last year alone and 170% in the last decade. You can also pick up a dividend yield of 1.84% as of writing. And it continues to be undervalued trading at 2.3 times book value.

Sienna stock

Finally, long-term-care homes were thrown for a loop during this pandemic. The pandemic brought to light the need to keep the elderly safe, and it looks like investors have confidence that Sienna Senior Living (TSX:SIA) can get that done.

But what investors should love about this company, no matter your age, is the dividend yield. Sienna stock offers a whopping 6.05% dividend yield you just don’t see these days. And with revenue starting to come back in strong, the company is likely to continue its growth through acquisition strategy once more.

Shares of the company are still a bargain at 2.4 times book value, which is why it’s one of the stocks to buy now. Meanwhile, shares are up 61% in the last year alone and 184% in the last decade.

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 ROYAL BANK OF CANADA.

More on Coronavirus

Business success with growing, rising charts and businessman in background
Coronavirus

1 Growth Stock Every Canadian Investor Should Consider Right Now

This growth stock saw shares pop 10% on June 20, as one analyst stated there is a significant opportunity to…

Read more »

Aircraft wing plane
Coronavirus

Bombardier Stock Merge: What it Means for Investors

Bombardier (TSX:BBD.B) stock went through a reverse stock split on June 13, turning 25 shares into one in one swift…

Read more »

Aircraft wing plane
Coronavirus

Air Canada (TSX:AC) Stock: Ready to Take Off?

While Air Canada is handling what it can control really well, there are many worsening macro headwinds that will likely…

Read more »

rail train
Coronavirus

Bull or Bear: Why Analysts Changed Their Tune on Aecon Stock

Analysts had been champing at the bit for the construction company, but the tides have turned.

Read more »

Biotech stocks
Coronavirus

Is Bellus Health Stock Still a Buy After 30% Earnings Jump?

The biotech continues to make progress on obtaining FDA approval for its chronic-cough therapy.

Read more »

grow dividends
Coronavirus

Goodfood Stock Likely to Double in 2022!

Goodfood (TSX:FOOD) stock has had a huge rise and fall in the last few years. But at $1.85 a share,…

Read more »

grow dividends
Coronavirus

Canfor Stock Pops 5% as Sales Climb 15% YOY

Canfor (TSX:CFP) stock remained positive about its future in the global lumber market after profits climb 15% year over year.

Read more »

edit Safety First illustration
Coronavirus

2 Crash-Proof TSX Stocks I’d Buy With $5,000

These two TSX stocks have proven they can handle this economic downturn and likely will continue to be safe far…

Read more »