It seems as if the Canadian stock market is at a crossroads. Is value the way higher? Or is it growth? Well, at least for the first half of 2021, it has been a bit of both. The S&P/TSX Composite Index is up nearly 16% year to date. While that has been supported by a massive recovery in the energy, financial, real estate, and materials sectors, it has also been lifted by some of Canada’s best-known growth stocks.
A balance of growth and value stocks in your portfolio seems to be an ideal mix. With growth stocks, you benefit from long-term tailwinds that are transforming the world. With value, you get to play the immediate recovery trends occurring in the economy. Considering this, here are three of my favourite Canadian stocks to own for the rest of the summer.
My favourite Canadian value stock
Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) is not just one of my favourite Canadian stocks to buy in the summer; it is one of my favourite stocks, period. Canada has one of the largest, premier asset managers, and hardly any Canadians know it. Brookfield manages over $600 billion of assets. It manages everything from debt to insurance to real estate to infrastructure assets.
Not only do investors get exposure to a very diverse offering of assets, but they also get a top management team to oversee them. This company has been growing its fee-related earnings by a compounded annual growth rate of 22% since 2017. It is expanding its fund offerings and it is not unforeseeable that it could hit $1 trillion of assets in the next few years. All around, this Canadian stock is just a great foundation for any portfolio.
My favourite growth stock
Many investors may not know, but Cargojet (TSX:CJT) has been one of the best performers on the TSX over the past few years. Since its inception, it has earned a nearly 2,000% return (not including dividends)! The stock has pulled back since last year, but this could present an attractive buying opportunity.
Cargojet is like the railroad of the skies. It provides Canada’s largest overnight air freight network. Its flights route to nearly 90% of Canada’s population. With same-day and two-day delivery becoming the norm for e-commerce shipping, Cargojet stands to benefit from steadily rising shipping volumes.
Likewise, Cargojet has plans to expand services internationally. While it may take time to build out its infrastructure, this could be a significant opportunity going forward.
My favourite Canadian technology stock
With the world increasingly becoming digital, many businesses are looking for solutions to adapt. Telus International (TSX:TIXT)(NYSE:TIXT) is perfectly positioned here. It provides digital solutions for some of the world’s largest technology companies. It has particular expertise in digital customer experience.
Last year, it acquired Lionbridge AI, a leader in data annotation and machine translation services. Just last week, it acquired Playment, a specialist in artificial intelligence (AI), computer vision, and LiDAR. Clearly, Telus International is positioning to be a leading provider of AI services.
This Canadian stock is growing by +30% a year, but it is also very profitable! Given that seemingly rare mix, this is one tech stock that still looks reasonably attractively priced today.
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 Robin Brown owns shares of Brookfield Asset Management Inc. CL.A LV and TELUS International (Cda) Inc. The Motley Fool owns shares of and recommends Brookfield Asset Management and CARGOJET INC. The Motley Fool recommends Brookfield Asset Management Inc. CL.A LV.