Got $1,000? Buy These 4 Top Canadian Stocks Right Now

Given their healthy growth prospects and attractive valuations, these four Canadian stocks could deliver superior returns this year.

| More on:
edit Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.

Image source: Getty Images

Despite the concerns over rising inflation, the S&P/TSX Composite Index continued to rise. Yesterday, the index touched an all-time high of 20,106.2 before closing at 20,065.92, representing a year-to-date increase of 15.1%. The expectation of reopening the economy, recovery in demand, and higher commodity prices have driven the index. Amid increased investors’ optimism, here are four top Canadian stocks to buy right now.

Suncor Energy

Amid the gradual reopening of the economy and easing travel restrictions, oil prices have bounced back strongly, rising over 45% since the beginning of this year. Higher oil prices benefit oil-producing companies, such as Suncor Energy (TSX:SU)(NYSE:SU), which has increased by 43.4% this year. Despite the rise, the company still trades over 28% lower than its January 2020 levels, offering an excellent buying opportunity.

Meanwhile, oil-producing companies are not keen on making additional capital investments in oil exploration amid the rising interest in electric vehicles. So, oil prices could remain elevated in the near term. Suncor Energy, an integrated oil company, involved in the extraction, refining, and distribution of petroleum products, is well equipped to benefit from rising oil prices. Higher production, increased refinery utilization, and falling operating expenses could drive Suncor Energy’s financials and stock price in the coming quarters. So, I am bullish on Suncor Energy.

Air Canada

Air Canada (TSX:AC), which had lost more than half of its stock value last year, has recovered some of its losses by rising 25.8% since the beginning of this year. Meanwhile, the uptrend could continue amid the recovery in air travel demand. The widespread vaccination and declining COVID-19 infection could soon prompt the Canadian government to ease travel restrictions, thus boosting passenger demand.

Further, the company’s cargo business is doing well since March 2020. Amid the rising demand, the company plans to expand its cargo business into international markets by adding two Boeing 767 aircraft later this year. Along with these factors, its cost-cutting initiatives could boost its earnings in the second half of this year. Meanwhile, Air Canada’s financial position looks strong, with its liquidity standing at $6.58 billion as of March 31, excluding the government’s aid of $5.9 billion.

goeasy

goeasy (TSX:GSY) is one of the top performers, delivering over 600% of returns in the previous five years at a CAGR of 50%. Over the last few years, its top line and net profits have grown at double digits, driving its stock price higher. The company has also rewarded its shareholders by raising its dividends at a CAGR of 34% since 2014. Currently, the company’s forward dividend yield stands at a healthy 1.8%.

Meanwhile, the improvement in economic activities could drive the demand for the company’s services. Further, its new product offerings, penetration into newer markets, and investment in technology could allow the company to increase its market share. goeasy acquired LendCare Holdings in April, which marks its entry into the sizeable non-prime lending market. So, the company’s growth prospects look healthy.

Savaria

Savaria’s (TSX:SIS) stock has increased by 38.8% this year, comfortably outperforming the broader equity markets. Its solid first-quarter performance and acquisition of Handicare appear to have boosted its stock price. Despite the increase, the company’s forward price-to-sales multiple stands at an attractive value of 1.8. Meanwhile, the uptrend could continue, given the favourable environment. The aging population and improving income could drive the demand for the company’s products and solutions.

Handicare’s acquisition could expand its distribution network outside North America. Handicare sells its products in over 40 countries while earning 89% of its revenue from Europe. The acquisition could also boost product innovation, improve production efficiency, and provide cross-selling opportunities. The company also pays a monthly dividend, with its forward dividend yield standing at 0.8%.

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.

The Motley Fool recommends Savaria Corp. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.

More on Energy Stocks

Arrowings ascending on a chalkboard
Energy Stocks

Beat the TSX With This Cash-Gushing Dividend Stock

Canadian Natural Resources stock is well set up to beat the TSX as it continues to generate strong cash flows…

Read more »

energy industry
Energy Stocks

2 TSX Energy Stocks to Buy Hand Over Fist Now

These two rallying TSX energy stocks can continue delivering robust returns to investors in the long term.

Read more »

green energy
Energy Stocks

1 Magnificent TSX Dividend Stock Down 37% to Buy and Hold Forever

This dividend stock has fallen significantly from poor results, but zoom in and there are some major improvements happening.

Read more »

oil tank at night
Energy Stocks

3 Energy Stocks Already Worth Your While

Here's why blue-chip TSX energy stocks such as Enbridge should be part of your equity portfolio in 2024.

Read more »

Solar panels and windmills
Energy Stocks

1 Beaten-Down Stock That Could Be the Best Bet in the TSX

This renewable energy stock could be one of the best buys you make this year, as the company starts to…

Read more »

Dice engraved with the words buy and sell
Energy Stocks

Is Enbridge Stock a Buy, Sell, or Hold?

Here's why Enbridge (TSX:ENB) remains a top dividend stock long-term investors may want to consider, despite current risks.

Read more »

Gas pipelines
Energy Stocks

If You Had Invested $5,000 in Enbridge Stock in 2018, This Is How Much You Would Have Today

Enbridge's high dividend yield hasn't made up for its dismal total returns.

Read more »

Bad apple with good apples
Energy Stocks

Avoid at All Costs: This Stock Is Portfolio Poison

A mid-cap stock commits to return more to shareholders, but some investors remember the suspension of dividends a few years…

Read more »