The Motley Fool

3 Canadian Stocks to Buy on the TSX Today

Image source: Getty Images

The TSX today is full of Canadian stocks to buy now, but you need to know where to look. One of the best strategies to take is to look at industries rather than stocks. If an entire industry is set to climb over the next few years, that’s a great way to dig in deeper to find the strongest stocks of the bunch. Here I’ll offer three choices of stocks to buy within industries set to continuing climbing for years to come.

Dye & Durham

Despite its initial public offering (IPO) happening just a year ago, Dye & Durham (TSX:DND) has become the must-have stock among Canadian stocks to buy. That’s because while it is a tech stock, it’s chosen to focus on the essential service sector. Legal firms, financial institutions, and government agencies are its bread and butter. And that bread will continue to be buttered for decades because of it.

Yet investors were treated to the news that the company may soon be acquired by a “management group” for $3.4 billion in the near future. But it doesn’t stop there. Dye & Durham is now looking at further offers, with this latest at $50.50 per share. Given that it trades at $47 per share, that’s a 6% increase. Though the company has already seen growth of 221% in the last year alone! That’s what makes it one of the best Canadian stocks to buy on the TSX today.

5 Stocks Under $49 (FREE REPORT)

Click here to gain access!

Enbridge stock

Enbridge (TSX:ENB)(NYSE:ENB) is an obvious choice for a reason. Sure, everyone wants to find that one stock that no one else has bought yet. But even though everyone is buying Enbridge stock, there’s a reason behind it. Enbridge stock has had a rough few years with the energy sector down, and now that it’s in recovery it should be one of the first to rebound.

That’s because Enbridge stock is supported by decades of long-term contracts to keep the cash coming in. Yet it also has growth projects underway to keep revenue growing. Despite negative headlines such as the Line 5 drama, management remains confident it will be a necessity for decades to come. And they’re right. Oil and gas will be around for years, making this a solid investment among Canadian stocks to buy now for long-term holders. Shares are up 13% in the last year, working back to all-time highs on the TSX today.

Air Canada stock

Finally, it’s another headline stock, but again for a good reason. The airline industry is due for a major rebound, and it looks like we’re almost there. The daily cases of COVID-19 have dropped by about 75% in the last month alone in Canada. And well over 50% of the population receiving the first dose of the vaccine. This is exactly what Air Canada (TSX:AC) has been waiting for.

Well that, and the government aid package. While the company must distribute refunds, it hopes many will use the travel vouchers in the coming months as travel restrictions decrease. It aims to double its available seats over the summer and get back to strong travel by the holidays when travel is set to really rebound.

So investors looking for top Canadian stocks to buy on the TSX today should definitely take a long look at Air Canada stock. By the end of 2021, it could be back to all-time highs.

Still looking for high growth at a cheap price?

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

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 AIR CANADA and ENBRIDGE INC. The Motley Fool owns shares of and recommends Enbridge.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.