4 Canadian Stocks to Buy After Strong Earnings

Looking for strong earnings? Look no further than these four stocks!

Earnings season continues to run strong. Motley Fool investors looking for Canadian stocks to buy should be paying attention, but not just to major jumps in share price. Instead, look for strong companies that made announcements that show there will be continued revenue down the line. This will lead to increased returns over time as well.

With that in mind, here are four Canadian stocks to consider after strong earnings reports.

TFI International

Shares of TFI International (TSX:TFII)(NYSE:TFII) jumped 10% after a strong second-quarter report. The results were better than expected by analysts, coming out of the US$800 million acquisition of UPS Freight. This strong performance allowed the company to raise its earnings per share guidance, with further upside potential if the company completes more organic growth and acquisitions.

The company reported adjusted EBITDA of US$279 million after hours on Monday. This was ahead of the predicted US$219 million by 27%! Shares have increased by 166% in the last year with the growth in shipping, and the company also offers a nice dividend yield as well. That makes it one of the strongest Canadian stocks to buy now. Especially as further growth is likely under current market conditions.

Teck Resources

It was a bit of a surprise that shares actually fell for Teck Resources (TSX:TECK.B)(NYSE:TECK) after a strong quarter. Record high copper prices actually allowed the company to see revenue rise significantly during the second quarter, with Canada’s largest base metals miner seeing sales rise to $2.6 billion. That’s a year-over-year increase of 53% from 2020 sales of $1.7 billion!

Teck is due to continue its exposure into copper, building a mine in Chile as we speak. But its core coal business also rose from the same quarter last year. Yet wildfires out west have created an issue for shipping from its coal mines, so next quarter may not be as strong.

That being said, Teck remains one of the best Canadian stocks to buy as it continues its core and new business models. Shares are up 84% in the last year, with analysts predicting an average potential upside of 21% for the next 12 months. So Motley Fool investors should pick up this deal while they can!

Celestica

Tech stocks may be down, but don’t count them out. Such was the case with Celestica (TSX:CLS)(NYSE:CLS) after it reported a better-than-expected third-quarter this week. The company believed COVID-19 would continue to put a damper on production.

However, management believes there will be a return to stable growth in 2022, with revenue reaching $6 billion and beyond. Therefore, the company believes its balance sheet can support both buybacks and acquisitions, making it one of the top Canadian stocks to buy.

Celestica reported revenue of US$1.42 billion, ahead of analyst estimates by 3%. As demand increases for its products and supply-chain management, revenue looks like it will only grow higher, leading to faster-than-market growth. Shares are up 14% for the year and jumping 13% from the report. Analysts believe there is an average potential upside of around 10% for the next year, and it remains a steal with a P/E ratio of 14.82.

FirstService

Finally, one of the solid Canadian stocks to buy right now off strong earnings results is FirstService (TSX:FSV)(NASDAQ:FSV). The essential property manager also saw results that exceed expectations during the second quarter. The company reported revenue of US$831.6 million for the quarter, which was a 34% increase year over year. This also exceeds analysts’ expectations by 13%.

This is one of the company’s that should continue to grow in revenue as COVID-19 subsides, with amenity services returning to normal. Shares are up 48% in the last year, and 307% in the last five years for a compound annual growth rate (CAGR) of 32%.

That trajectory has remained stable even during the pandemic for Motley Fool investors, with only a short dip. So this is one of the Canadian stocks to buy today and likely never sell again!

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 owns shares of and recommends Teck Resources. The Motley Fool recommends FirstService Corporation, SV.

More on Investing

Rocket lift off through the clouds
Tech Stocks

1 AI Stock Up 11% to Own in a TFSA for Long-Term Growth

Never mind chasing flashy AI start-ups with soaring valuations. Check out this profitable Canadian tech powerhouse that has stood the…

Read more »

A worker wears a hard hat outside a mining operation.
Metals and Mining Stocks

Ivanhoe Mines: Buy, Sell, or Hold in July 2025?

Here's what to consider before trading Ivanhoe Mines stock this month. Watch out for July 30th!

Read more »

ETF stands for Exchange Traded Fund
Investing

Earn a 4.3% Yield From Berkshire Hathaway Stock With This Monthly Income ETF

This ETF uses options and leverage to generate income from Berkshire Hathaway

Read more »

construction workers talk on the job site
Energy Stocks

This Canadian Stock Could Double Even During Market Volatility

While growth stocks ride volatility, this dependable, dividend-paying stock could double your money over time.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

What Are Some Good Energy Stocks to Buy Now?

Cenovus Energy (TSX:CVE) and another great oil bet that could pay huge dividends.

Read more »

Forklift in a warehouse
Dividend Stocks

It’s Possible! Build a $250,000 TFSA Using Just 2 Dividend Stocks

Want a $250,000 TFSA that pays out monthly? These two solid REITs pay monthly distributions.

Read more »

Income and growth financial chart
Dividend Stocks

This Canadian Retail Stock Yields 3.8% and Keeps Expanding

A growing dividend, rising share price, and big strategic moves make this top Canadian retail stock worth owning for the…

Read more »

Senior uses a laptop computer
Retirement

How Much Can You Earn Before Losing Your Guaranteed Income Supplement?

The CRA offers the Guaranteed Income Supplement to low-income Canadians above 65. At what annual income will you lose your…

Read more »