Investors are spooked about inflation and the stock market has lost momentum since the previous year. It’s probably an excellent time to start your investment journey. Here are the top five stocks to buy if you have $1,000 to invest.
Stock to buy for recovery
Alimentation Couche-Tard (TSX:ATD.A)(TSX:ATD.B) is a top pick for 2021 because of the ongoing economic recovery. As the world reopens, people should resume travelling at pre-crisis levels. That means foot traffic at Couche-Tard shops across the world should see a sharp rebound. Convenience store sales have been steady over the past year, but once fuel sales recover this stock should surge much higher.
Keep an eye out for the company’s quarterly earnings report this week.
Stock to buy for payments
In a similar vein, Lightspeed (TSX:LSPD)(NYSE:LSPD) has managed to sustain its operations by pivoting to e-commerce over the past year. This year, its core restaurant and retail merchants reopen which means transaction volumes should rebound quickly. The looming threat of inflation also makes this an excellent stock to buy because payment processors transmit rather than suffer from inflation.
Lightspeed has been a phenomenal growth stock over the past year. Now, it also a play on the economic reopening and inflation spike. That’s what makes it one of the best stocks to buy right now.
Stock to buy for real estate
Fronsac REIT (TSXV:FRO.UN) is a real estate investment trust focused on the triple net and management-free retail properties. In other words, it’s in one of the most lucrative niches of the real estate sector.
Operations are being buoyed by the recovery in commercial properties. In its most recent quarter, net income and funds from operations rose 49% and 27%, respectively.
The company pays out roughly half its funds from operations, which means it has plenty of room to reinvest or boost shareholder payouts in the future. That’s what makes this REIT a top stock to buy with your $1,000.
Stock to buy for green energy
Brookfield Renewable (TSX:BEP.UN)(NYSE:BEP) is at the epicenter of a multi-decade, multi-trillion-dollar transition to green energy. As one of the world’s largest renewable energy providers, Brookfield should see tremendous upside as governments tighten climate regulations and implement strict emissions targets in the years ahead.
With the United States officially rejoining the Paris climate accord earlier this year, the transition to green energy is back on track. Brookfield is a clear winner.
Stock to buy for automation
ATS Automation Tooling Systems (TSX:ATA) sounds like a hopelessly boring company, but that’s precisely why it’s been overlooked. The company provides industrial automation systems such as laboratory automation and fluid distribution equipment, among others.
Over the past year order bookings grew 30% to $463 million, while the company’s order backlog stands at $1.2 billion. Annual revenue and net earnings are both up 33.7% and 37.5%, respectively, despite the fact that the stock trades at a price-to-earnings ratio of 49.
ATS is an excellent stock to buy if you’re looking for a robust growth opportunity at a reasonable valuation.
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 ALIMENTATION COUCHE-TARD INC and Lightspeed POS Inc. The Motley Fool recommends Fronsac Real Estate Investment Trust. Fool contributor Vishesh Raisinghani owns shares in ALIMENTATION COUCHE-TARD INC.