4 of the Best TSX Stocks to Buy This Week

Here are four of the best TSX stocks that investors can add to their portfolios this week.

| More on:
A stock price graph showing growth over time

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

Canadian stocks rose sharply in the first half of 2021 as the reopening economy and vaccines rollout boosted investors’ confidence. The TSX Composite Index inched up by 15.7% in the first half of the year.

While the market has seen a sharp rally this year, some stocks still look attractive as they haven’t seen much appreciation despite their solid fundamentals. Here are four of the best TSX stocks that investors can add to their portfolios this week.

Royal Bank of Canada stock

Royal Bank of Canada (TSX:RY)(NYSE:RY) is arguably the most attractive banking sector stock to buy right now. During the COVID pandemic, the largest Canadian bank’s core banking operations suffered. Nonetheless, a sharp rise in its capital market segment volume helped boost its overall results.

Moreover, its core banking operations also showed a sharp recovery in the quarter ended in April 2021, boosting RBC’s overall earnings growth. Apart from the ongoing recovery in its banking operations, its good dividends make its stock worth buying right now. It has a dividend yield of 3.4% at the current market price of $126.03 per share.

TD Bank stock

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is another good TSX bank stock you may want to bet on due to its well-diversified financial services portfolio. Along with improving growth in its non-interest income segment, strong loan and deposit volumes are helping its overall business recover fast.

In the second quarter of its fiscal 2021, TD Bank reported good account growth across all its key businesses — showcasing a faster-than-expected recovery. However, its stock has risen by only 21% this year so far and still has good room to inch up further. You may want to add TD Bank stock to your portfolio right now before it starts rallying in the second half of this year.

Canadian Pacific Railway stock

The shares of Canadian Pacific Railway (TSX:CP)(NYSE:CP) have underperformed the broader market this year. Its stock is currently trading at $95.55 per share with about 8.2% year-to-date gains. In the first quarter, the company posted a 1.4% YoY rise in its earnings to $0.90 per share despite a 4% drop in its revenue.

While the company’s revenue has been falling for the last four quarters in a row, analysts expect them to rise by about 15% YoY in the next couple of quarters. Canadian Pacific has been focusing on optimizing its assets and operation to improve overall efficiency, helping it boost its bottom line. These factors could help CP stock rally in the second half of 2021.

Enbridge stock

Enbridge (TSX:ENB)(NYSE:ENB) could prove to be one of the most rewarding stocks for investors seeking passive income. It currently has an attractive dividend yield of 6.7% at the market price of $50.15 per share.

After COVID-19 driven energy demand issues hurt its sales last year, its revenues are expected to rise by 9% in 2021. This recovery is likely to help its earnings to reach near the pre-pandemic levels. Despite improving energy sector fundamentals, Enbridge stock has seen only 23% gains in 2021 after falling by 21% last year. You can expect its stock to outperform the broader market in the near term as the demand for energy products continues to 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.

The Motley Fool owns shares of and recommends Enbridge. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Bank Stocks

Hand arranging wood block stacking as step stair with arrow up.
Bank Stocks

The Most Valuable TSX Stock Out There Is up 10% This Month!

This TSX stock is the best value stock out there, expanding even during a downturn and setting itself up from…

Read more »

A person builds a rock tower on a beach.
Dividend Stocks

Change Your Future: What to Hold in a TFSA in 2022

Holding dividend growth stocks in a TFSA long-term can change the financial futures of worried Canadians.

Read more »

work from home
Bank Stocks

Where Should Canadians Invest $500 Right Now? How About the “Best Bank for Your Buck?”

TD Bank (TSX:TD)(NYSE:TD) stock is a Dividend Aristocrat that looks too cheap to ignore as rates surge.

Read more »

Money growing in soil , Business success concept.
Dividend Stocks

Got $4,000? 4 Simple TSX Stocks to Buy Right Now

The macroeconomic environment is tense but investing can be simple. Here are four stocks to buy now and book your…

Read more »

Growth from coins
Dividend Stocks

What’s More Effective: 1 Growth Stock or 1 Dividend Stock for High Returns?

Let's settle the age old debate. If you had invested in a huge growth stock or a solid dividend stock,…

Read more »

Bank sign on traditional europe building facade
Bank Stocks

Why I Prefer Banks to Oil Stocks for 2022’s 2nd Half

Right now, I like bank stocks like Toronto-Dominion Bank (TSX:TD)(NYSE:TD) more than oil stocks.

Read more »

edit Four girl friends withdrawing money from credit card at ATM
Stocks for Beginners

2 Big Bank Stocks to Own for Lifelong Income

These two Big Bank stocks are ideal staple holdings for newbie investors seeking a lifetime of passive income.

Read more »

Dial moving from 4G to 5G
Tech Stocks

TFSA Investors: 2 Canadian Stocks With Unbelievable Staying Power 

Amid economic uncertainty, investors look for stocks that can thrive in any crisis and grow long term. Here are two…

Read more »