Canadian stocks are flying high in 2021, as the global economic reopening is boosting businesses’ growth outlook as well as investors’ confidence. While some experts predict a near-term stock market correction, investors can still buy the shares of some fundamentally strong companies to minimize downside risks. By doing so, you can expect outstanding returns on their investment in the long term.
Here are five of the best TSX stocks to buy right now and hold as long as you want.
Lightspeed POS stock
Lightspeed POS (TSX:LSPD)(NYSE:LSPD) stock is currently trading at $89.46 per share without any major year-to-date change. The shares of this Montréal-based enterprise software company staged a massive rally in 2019 and 2020. While it yielded outstanding 276% returns in 2019, it rose by 149% last year.
The overall trend in Lightspeed’s total sales remains very strong, and as its sales growth rate has been improving for the last four consecutive quarters. In the March quarter, the company registered a 127% rise in its total revenue to $82.4 million. Moreover, its fast-growing customer base, along with higher sales to existing customers, could help it grow exponentially in the coming years. That’s why you may want to add its stock to your portfolio right now.
I find the shares of Shopify (TSX:SHOP)(NYSE:SHOP) among the most underappreciated tech stocks on the Toronto Stock Exchange right now. Despite demonstrating outstanding financial growth lately, its stock is currently trading with just 15% gains for the year — even slightly lower than the TSX Composite Index’s 16% gains.
While its overall sales growth rate might normalize in the coming quarters, it may still be well above most other large Canadian companies — especially from the tech sector. Over the last few years, Shopify stock has yielded extraordinary returns for its investors, and it should continue to do so in the coming years, in my opinion.
BlackBerry (TSX:BB)(NYSE:BB) stock volatility has massively increased in the last few weeks, mainly due to the ongoing Reddit trading mania. While critics may call its stocks overvalued right now, I find it undervalued based on its future growth potential.
In some of my recent articles, I’ve explained why BlackBerry’s expertise in the cybersecurity domain and its rising automotive segment offerings — especially for electric and autonomous vehicles — could become big growth drivers in the coming years. At the time of writing, BlackBerry stock was trading with nearly 88% year-to-date gains. Investors can buy the stock on dips, as it could yield extraordinarily high returns in the long run.
Magna International stock
For example, Magna formed a joint venture in partnership with LG Electronics last year. The joint venture would “manufacture e-motors, inverters and on board chargers and, for certain automakers, related e-drive systems to support the growing global shift toward vehicle electrification.”
I expect the shares of Magna International to outperform the broader market by a wide margin in the coming years, as the demand for electric vehicles grows further.
Laurentian Bank of Canada stock
Investors can also include a banking sector stock to keep their stock portfolio well diversified. Laurentian Bank of Canada (TSX:LB) is one of my favourite banking sector stocks to buy at the moment. Its stock is currently trading at $43.56 per share with about 39% year-to-date gains. The bank is a part of Laurentian Bank Financial Group, which has $45.2 billion in balance sheet assets and $29.2 billion in assets under administration.
In the April quarter, Laurentian Bank’s earnings rose by 515% year over year to $1.23 per share, while its revenue rose by 4%. The improving economic outlook could help the bank report solid growth in the coming quarters, triggering a rally in its stock.
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 owns shares of and recommends Lightspeed POS Inc and Shopify. The Motley Fool recommends BlackBerry and Magna Int’l and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.