After a strong recovery by the economy over the last year, several top Canadian stocks are now hitting new highs. And while you always want to generally buy low, you also want to buy stocks that have momentum and have proven they can continue to grow rapidly.
We know that the stocks hitting new highs today must be some of the best businesses to buy. However, we also don’t want to overpay.
So it’s key that while we look for these high-quality businesses to buy, we ensure that the price is fair compared to the long-term growth potential that they offer.
So with that in mind, here are two of the top Canadian stocks hitting new 52-week highs.
A top Canadian restaurant stock
Before the pandemic hit, one of the top growth stocks for dividend investors in Canada was A&W Revenue Royalties (TSX:AW.UN). A&W is a consumer favourite in Canada that only continues to grow in popularity.
With many Canadians staying home to help stop the spread, or even working from home, though, quick-service restaurants like A&W were impacted by the pandemic.
The impact was never that drastic, though, nor did it last long. So the top Canadian stock has been recovering ever since. Today, though, the gains are no longer a recovery rally.
A&W stock continues to surge, as it’s now back on track as a top growth investment for dividend investors. For years the fund has grown both the number of locations it has and the average sales of each location.
A&W is now clearly the second-largest burger chain in Canada, trailing only the golden arches of McDonald’s. So if you’re looking for a top dividend growth stock, A&W is one I’d add to your watch list.
A high-potential real estate stock
Another high-quality Canadian growth stock setting new highs is InterRent REIT (TSX:IIP.UN). InterRent is a residential real estate stock that’s been an exceptional growth investment for long-term investors.
Over the past 10 years, investors have earned a total return of more than 1,000%, which includes the blip caused by the pandemic.
InterRent’s operations were never that severely impacted by the pandemic. Yet this top growth stock fell by over 30% when the pandemic hit and only recently returned to its pre-pandemic prices.
This goes to show how important it is to hold these top Canadian stocks for the long term. InterRent is a growth stock that trades with a growth premium. So when the pandemic hit, the stock fell more than its operations were impacted as this premium was eroded.
And over the last year, with all the uncertainty while it’s been recovering, investors wanted to be absolutely sure that there are no major risks before bidding the stock back up.
Today, though, it continues to set new all-time highs. So as long as InterRent can continue to run its business normally, without any major interruptions from the pandemic, it should be able to get back on track in no time.
Therefore, if you’re looking for a top Canadian growth stock to buy, InterRent is definitely a stock I’d be watching to buy on a pullback.