After a slower start to 2021 than the end of 2020 for markets, there are plenty of opportunities to find some of the best Canadian stocks to buy right now.
In addition to the potential that recovery stocks have, as the economy continues to rebound over the coming months, there are several opportunities presenting themselves to inventors today, whether it’s commodities companies that have momentum as inflation ticks higher or tech stocks with the potential to grow rapidly.
Here are three of the best Canadian stock to buy right now — all trading under $20 a share.
A top Canadian real estate stock to buy now
One of the hardest-hit industries during the pandemic has been retail real estate. You can still find top real estate stocks like First Capital REIT (TSX:FCR.UN) trading at an attractive discount.
Today, First Capital trades at roughly $18 a share. The REIT owns a portfolio of mixed-use properties, including retail, office, and residential assets.
This diversification has been key in helping First Capital to weather the storm over the last 16 months. However, its high-quality properties have also played a role in its incredible stability.
Many of First Capital’s retail assets are in prime locations. Not only that, but they are also anchored by top tenants such as grocery stores, banks, and pharmacies. This keeps rents stable but also increases demand from tenants, as these locations tend to have the most foot traffic.
First Capital still looks like it’s worth a buy below $20. However, it has been recovering rapidly lately. I would look to buy this top Canadian stock now, or you could miss out on the discount altogether.
5 TSX Stocks Under $5Click here to learn more!
Restaurant stocks look set for a recovery
Another industry where investors can find top Canadian stocks to buy today is the restaurant industry. Restaurants may finally be able to open up for good, as Canada continues to vaccinate its population and case counts drop dramatically. Several restaurant stocks look cheap today, but one of the best to consider is Boston Pizza Royalties Income Fund (TSX:BPF.UN).
Although regulations have changed throughout the pandemic, most Boston Pizza locations have had to rely predominantly on patio sales and takeout since the pandemic began. So, it’s pretty impressive that, for the most part, the fund has only seen a 30% decline in sales since the pandemic began.
As restaurants can open back up again fully, though, Boston Pizza’s revenue will naturally increase. Not only can investors expect some dividend increases when that happens, but the share price can rally considerably as well.
At its current price, Boston Pizza is one of the top Canadian stocks to buy right now. Today, it trades for roughly $14.50 a unit and pays a 5.4% dividend.
However, in recent years, units have traded as high as $23. And while it may not be able to recover to its high in the near term, it has significant growth potential once the pandemic is fully in the rearview.
A top cleantech stock trading cheap
Lastly, a company that may be one of the best Canadian growth stocks and a top pick to buy now is Xebec Adsorption (TSX:XBC).
Xebec is a cleantech stock with a long timeline for growth. The company makes equipment that traps, purifies, and filters gasses. It can then transform them into marketable sources of clean energy, such as renewable natural gas or hydrogen.
This technology has huge potential in the future, and investors got a taste of just how fast the stock can rally last year. There’s no question, though, that stocks in the renewable space got a little overvalued. So, Xebec and several of its peers all saw declines earlier this year for no fundamental reasons other than valuations.
Today, though, after the selloff, it’s considerably undervalued and still has a tonne of long-term growth potential. Trading at just $4.40, it trades at a price-to-book ratio of just two times. Furthermore, the stock was as high as $11.50 over the last year.
So, if you’re looking for a top Canadian stock that has decades of growth potential, Xebec is easily one of the top stocks to buy 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 Daniel Da Costa owns shares of Xebec Adsorption Inc. The Motley Fool recommends FIRST CAPITAL REALTY INC.