Trend Alert: 3 Canadian Stocks to Buy Now Before It’s too Late!

There are a lot of post-pandemic recovery industries set to explode, but these are the top Canadian stocks to buy now for major growth.

| More on:
stock data

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Investors everywhere are looking for the next big thing. Many look to what is set to recover after the pandemic, and that’s exactly where I’m suggesting you look today. But where some look to tech stocks or real estate, today I believe the next Canadian stocks to buy now are in the apparel sector.

Apparel saw a massive downward spiral during the pandemic. Many companies raced online to provide easy access to their online stores. This brought a huge rise in e-commerce, with some seeing revenue quadruple or more in the last year from online sales.

But if you’re like me, there are certain items of clothing you simply can’t buy online. And browsing is the surest way to impulse buying. This means there is likely to be a massive increase in revenue growth in the apparel industry.

So let’s look at three Canadian stocks to buy now within this industry before you miss out.

Aritzia

Aritzia (TSX:ATZ) designs and sells apparel in over 100 boutiques across Canada and the United States. It has a promising future ahead after a pandemic recovery, but it’s been doing well during this downturn as well.

While net sales fell by 2.9% year over year, e-commerce revenue jumped 81% during the last quarter. Meanwhile, it continued to oven seven new stores, and last month moved into menswear by acquiring Reigning Champ, a men’s streetwear brand.

With more restrictions being lifted all the time, this is definitely one of the Canadian stocks to buy now as numbers continue to rise. The $4 billion company has already seen share growth of 108% in the last year as of writing. Analysts predict a potential upside still of 13.5% in the year to come. Yet it remains a strong buy amid a recovery, especially for long-term holders looking to take advantage of this new growth stock.

Dollarama

Motley Fool Canada investors should look out for Dollarama (TSX:DOL) once again. After a huge surge in 2018, shares of the stock fell during the crash. Unlike other retail locations, Dollarama stock had a hard time keeping up. You simply can’t get your everyday items online. However, as it offered some essentials it did manage to remain open, though with far less to offer customers.

But all that is about to change with restrictions being lifted. The company is one of the best Canadian stocks to buy now as consumers return to stores. It has thousands of locations across Canada and acquired a Latin American company before the pandemic hit for even more revenue.

Shares of the company are up 28% in the last year, but analysts give it an incredible potential upside of 23% as of writing. On the back of a strong quarter that saw sales increase by 13%, investors should look forward to more good news from this company.

Canada Goose

Finally, it likely won’t be this summer but by the winter season, Canada Goose Holdings (TSX:GOOS)(NYSE:GOOS) is likely to see a massive surge in winter wear. This comes from a combination of the holiday season and the urge to shop in-store after two years of shopping online. The company also received favourable headlines by stating it would now be going fur-free.

The stock hasn’t been suffering, with total revenue increasing 33.7% year over year during the last quarter, and global e-commerce up 123%! Motley Fool Canada investors should expect this to be one of the Canadian stocks to buy now ahead of a year of retail growth.

Shares are up 76% in the last year alone, but analysts give it a potential upside of 32% as of writing. With the company continuing to open up retail locations around the globe, this is definitely one of the top Canadian stocks to buy now ahead of a retail surge.

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 has no position in any of the stocks mentioned. The Motley Fool recommends Canada Goose Holdings.

More on Coronavirus

Business success with growing, rising charts and businessman in background
Coronavirus

1 Growth Stock Every Canadian Investor Should Consider Right Now

This growth stock saw shares pop 10% on June 20, as one analyst stated there is a significant opportunity to…

Read more »

Aircraft wing plane
Coronavirus

Bombardier Stock Merge: What it Means for Investors

Bombardier (TSX:BBD.B) stock went through a reverse stock split on June 13, turning 25 shares into one in one swift…

Read more »

Aircraft wing plane
Coronavirus

Air Canada (TSX:AC) Stock: Ready to Take Off?

While Air Canada is handling what it can control really well, there are many worsening macro headwinds that will likely…

Read more »

rail train
Coronavirus

Bull or Bear: Why Analysts Changed Their Tune on Aecon Stock

Analysts had been champing at the bit for the construction company, but the tides have turned.

Read more »

Biotech stocks
Coronavirus

Is Bellus Health Stock Still a Buy After 30% Earnings Jump?

The biotech continues to make progress on obtaining FDA approval for its chronic-cough therapy.

Read more »

grow dividends
Coronavirus

Goodfood Stock Likely to Double in 2022!

Goodfood (TSX:FOOD) stock has had a huge rise and fall in the last few years. But at $1.85 a share,…

Read more »

grow dividends
Coronavirus

Canfor Stock Pops 5% as Sales Climb 15% YOY

Canfor (TSX:CFP) stock remained positive about its future in the global lumber market after profits climb 15% year over year.

Read more »

edit Safety First illustration
Coronavirus

2 Crash-Proof TSX Stocks I’d Buy With $5,000

These two TSX stocks have proven they can handle this economic downturn and likely will continue to be safe far…

Read more »