Forget Reddit Stocks: The Best Canadian Stocks to Buy Now

Reddit continues to pump stocks with the main goal of dumping them. So, instead of looking to Reddit, consider these strong stocks instead.

| More on:
Road signs rerouting traffic

Image source: Getty Images.

The markets continue to be a volatile place for investors today. But whether you’re a conservative investor or an active one, there’s one thing driving the movement: fear. That’s exactly what’s been going on with investors seeking out Reddit stocks.

Reddit, specifically the channel WallStreetBets, has been fuelling a “pump-and-dump” scheme with its meme stocks. The users are very clear that they hope to pump share prices as high as possible and then dump them. This is horrible for not just investors due to volatility but for the companies themselves. They now are simply waiting to see when a correction could take place.

So, rather than looking to Reddit, investors should be seeking out strong companies. Now, I’m not saying the companies chosen by Reddit aren’t strong companies. But right now, there is far too much volatility surrounding them. Instead, investors can seek out strong companies in industries that are set to rebound in the coming months and for years to come.

Forget Reddit: Buy toys

I guess I should say, buy TOY. Spin Master (TSX:TOY) is an excellent choice to buy instead of seeking out new Reddit stocks. This company is the perfect rebound play as the economy recovers. Canadians in particular have saved a lot of cash during the pandemic. They have paid down debt, increased savings, and are looking to spend.

And one area that’s likely to occur is in the toy industry. If you’re a parent, you know that toys aren’t exactly discretionary items. We’d like to say they aren’t necessary, but to get those 15 minutes of peace, they certainly become necessary — especially when they’ve been begging for a new Paw Patrol toy for months.

That’s exactly what Spin Master is hoping for. It’s seen revenue increase again and again fuelled by, yes, Paw Patrol, but also investment into digital gaming. This industry is booming, speeding up a recovery for the company. And now there’s a new Paw Patrol movie coming out! The company recently reported revenue up 39.3% year over year, and sales are up 21.3%. Shares have climbed a 91% in the last year alone! With the economy continuing to recover, I’d take this stock any day over Reddit bets.

Get WELL

But then there are the industries that will continue to be strong even after growth in the pandemic. That includes virtual healthcare companies like WELL Health Technologies (TSX:WELL). The company soared with the use of its virtual healthcare services during the pandemic. And it’s not going to be simply dumped to the side after the pandemic is over. There is far too much to gain. Physicians save time and money and have the added benefit of safety by continuing this practice.

WELL Health stock continues to be in growth mode. The company recently reported record setting revenue up 150% year over year! And that’s not including its recent acquisitions. The company made a substantial investment into the United States and is now the largest outpatient medical clinic in Canada!

And while Reddit may have stocks that are growing now, they won’t grow forever. Meanwhile, WELL Health stock has been on a tear. Shares are up 198% in the last year alone and climbing. It’s likely to continue climbing, as WELL Health stock reports more and more record-setting earnings reports. So, this is one stock I would take over Reddit any day of the week.

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 WELL Health Technologies. The Motley Fool owns shares of and recommends Spin Master Corp.

More on Coronavirus

Dad and son having fun outdoor. Healthy living concept
Dividend Stocks

1 Growth Stock Down 15.8% to Buy Right Now

A growth stock is well-positioned to resume its upward momentum in 2024 following its strong financial results and business momentum.

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Stocks for Beginners

3 Things About Couche-Tard Stock Every Smart Investor Knows

Couche-tard stock (TSX:ATD) may be up 30% this year, but look at the leadership and history of the stock to…

Read more »

Plane on runway, aircraft
Coronavirus

Can Air Canada Double in 5 Years? Here’s What it Would Take

Air Canada (TSX:AC) stock has gone nowhere since 2020. Can this change?

Read more »

Senior housing
Stocks for Beginners

Home Improvement Stocks Are Set to Fall (When They Do, Buy These Like Crazy!)

Home improvement stocks are due to drop further in the coming months. But with solid underpinnings for the sector, it…

Read more »

An airplane on a runway
Coronavirus

Forget Boeing: Buy This Magnificent Airline Stock Instead

Boeing (NYSE:BA) stock is looking risky right now, but Air Canada (TSX:AC) stock? Much less so.

Read more »

Man considering whether to sell or buy
Stocks for Beginners

Goeasy Stock: Buy, Sell, or Hold?

When it comes to smart buys, goeasy stock (TSX:GSY) is up there as one of the smartest money can buy.…

Read more »

Woman has an idea
Stocks for Beginners

Here’s Why Magna International Is a No-Brainer Value Stock

Magna stock (TSX:MG) has been climbing back once more, but still offers huge value for long-term minded investors.

Read more »

Aircraft wing plane
Coronavirus

1 TSX Stock Down 60% That Could Bounce Back Stronger

Air Canada (TSX:AC) stock got severely beaten down in the March 2020 COVID crash. Here's why it's probably not going…

Read more »