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4 of the Best Stocks to Buy on TSX Today and Hold Forever

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Investor confidence is sky high as we prepare for the country’s reopening. The S&P/TSX Composite Index is up 15% year to date. It’s been an incredible run this year, but I don’t think the growth is ready to slow down just yet.

If you have a long-term time horizon, here are four top TSX stocks that should be on your radar right now. 

Shopify

Shares aren’t cheap from a valuation or stock price perspective, but that shouldn’t stop you from starting a position in Shopify (TSX:SHOP)(NYSE:SHOP)

The stock price is nearing $2,000 and it’s trading at a very expensive price-to-sales (P/S) ratio above 60. It’s one expensive stock, but it has been for most of the time that it’s been trading on the TSX.

Shares of the $225 billion company are up a market-beating 40% over the past year. For patient investors who have held through the volatility over the past five years, they’re sitting on a 40-bagger.

I wouldn’t bank on another 4,000% growth over the next five years. But as long as the company can continue to grow its revenue at a torrid rate, there’s no reason to believe why Shopify won’t continue to crush the market’s returns.

Docebo

Speaking of high-priced growth stocks, Docebo (TSX:DCBO)(NASDAQ:DCBO) is another company that long-term investors will want to have on their watch list today.

Shares of the tech stock aren’t as expensive as Shopify, but a P/S ratio above 30 is still far from cheap. The tech stock is trading 15% below all-time highs, though, so if you’ve been thinking about starting a position, now would be a wise time. 

Demand for Docebo’s virtual training platforms skyrocketed in 2020 when the pandemic first hit North America. The sudden rise in remote work made the company’s cloud-based products that much more important for its customers. 

Many Canadians have already begun returning to the office, but I’m still bullish on the rise of remote work over the long term.

TD Bank

The Canadian banks are riding a strong bull run right now. The Big Five have all been outperforming the market since the beginning of 2021.

Growth isn’t the main reason I have TD Bank (TSX:TD)(NYSE:TD) on my watch list, but that doesn’t mean shareholders won’t have the potential to earn market-beating gains.

Shares of TD Bank are up a market-beating 60% over the past five years. That’s not even including its 3.6% dividend yield, either. 

The banks have managed to perform impressively well over the past year even as interest rates remain at record lows. It could be a while before we see interest rates return to pre-COVID-19 levels, but that rise could send the banks soaring even higher. 

Algonquin Power

Last on my list is a dependable utility stock that will help balance out the high-growth stocks in your portfolio.

Utility stocks won’t light the world of fire with their growth, but you can count on them regardless of the economy’s condition. 

I tend to favour growth in my stock picks, which is why of all the utility companies on the TSX, I’ve got Algonquin Power (TSX:AQN)(NYSE:AQN) on my watch list. 

It’s the renewable energy part of the business that has me bullish on Algonquin Power. The company provides its customers with wind, hydro, and solar renewable energy options. 

Largely due to the stock’s exposure to the growing renewable energy sector, shares have outperformed the market’s returns over the past five years.

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 Nicholas Dobroruka owns shares of Shopify. The Motley Fool owns shares of and recommends Docebo Inc. and Shopify. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.

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