The 5 Best Canadian Stocks to Buy This Week

These five stocks have recent news that should lead Motley Fool investors to consider them the best Canadian stocks to buy this week!

edit Businessman using calculator next to laptop

Image source: Getty Images.

Motley Fool investors are still hungry for growth. But your investment strategy shouldn’t rest on the shoulders of short-term gains. Instead, finding strong stocks that have a short-term boost and long-term potential is a solid choice. These five Canadian stocks to buy this week are some of the best to consider right now. Each has promising short-term momentum but have fundamentals that will mean long-term returns.

WPT Industrial

WPT Industrial REIT (TSX:WIR.UN) shareholders were hit with major news on Monday morning. The light industrial property REIT announced the company will be acquired by Blackstone real estate income fund, likely by the fourth quarter. The total cost will be US$3.1 billion and takes on all the company’s debts. So, it’s by far one of the best Canadian stocks to buy.

Shares jumped by 16% in early morning trading, and earnings are due this week for the company’s second quarter. The purchase price represented a 17% premium to the August 6th share price. So, investors still have a chance to get in on a cheap price before it’s likely to soar higher amid this acquisition. And they can still get in on a 6.02% dividend yield!

Algonquin Power

Also on deck for earnings is Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN). The company will report on Thursday morning, with analysts predicting earnings per share at $0.17. Shares of the company have bobbed around this year, currently up 13.85% in the last year. However, it’s a solid company with strong future growth potential.

With the energy company having its hand in oil, gas, utilities, and renewable energy, Algonquin has grown at a rapid pace. And honestly, the pullbacks haven’t been warranted. During the last earnings report, the company saw a 36% increase in year-over-year revenue and adjusted EBITDA growth of 17%. With a 4.27% dividend yield, it’s one of the best Canadian stocks to buy right now.

Open Text

Motley Fool investors wanting sustainable growth can still get it from Open Text (TSX:OTEX)(NASDAQ:OTEX). The company delivered nothing but good news during its latest earnings report. Open Text generated US$3.39 billion in revenue, with 4% from organic growth from existing businesses. And while some question why it isn’t using its US$6 billion to make acquisitions, shareholders have better news.

Open Text is waiting for a good deal, not just any deal. Meanwhile, it’s instead giving cash back to shareholders, raising its dividend for the eighth time in almost a decade. It also announced it will aim to return 33% to shareholders through dividends, up from 20%, until a new deal arises. The future looks bright for Canadian stocks like Open Text.

Pembina Pipeline

Pipeline companies continue to be solid investments for those worried about the oil and gas rebound. Analysts believe Pembina Pipeline (TSX:PPL)(NYSE:PBA) will be one of the benefactors from increased oil and gas demand. The company recently increased its EBITDA guidance by a little bit but left the door open for even more growth. Management believes it’s still early in the year.

Still, raising between $3.2-$3.4 billion and $3.3-$3.4 billion isn’t nothing, and this comes from strong prices for commodities. This could also mean the company will soon reactive its Peace Phase IX project. This coupled with more recent news means shares of Pembina may rise higher. So, it’s one of the best Canadian stocks to buy this week for Motley Fool investors.

Canadian Western Bank

Finally, recent insider trading has some investors keeping an eye on Canadian Western Bank (TSX:CWB). Director Irfhan Rawji bought 10,000 shares at a price of $34.16 per share. This created a cost of more than $341,000 from the investment. Of course, we can only speculate as to why Rawji bought the shares now. It could be because shares are down about 7% from May highs. It could be as the company continues buying back shares. Or it could simply be from the economic recovery.

Whatever the reason, Canadian Western remains a solid rebound stock and one of the best Canadian stocks to buy. Such a large buy could mean others follow suit. The stock is up 56% in the last year, and revenue is growing at a steady pace as well. Motley Fool investors can also take advantage of a 3.34% dividend yield.

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 owns shares of PEMBINA PIPELINE CORPORATION. The Motley Fool recommends OPEN TEXT CORP, Open Text , and PEMBINA PIPELINE CORPORATION.

More on Investing

Paper Canadian currency of various denominations
Dividend Stocks

Set and Forget: 1 Dividend Stock That Could Create $1,000 in Tax-Free Passive Income in 10 Years

Enbridge operates a low-risk business that has allowed the TSX dividend giant to raise its payout by 10% annually since…

Read more »

financial freedom sign
Retirement

Want $1 Million in Retirement? Invest $10,000 in These 3 Stocks and Wait a Decade

What would it take to convert $10,000 into $1 million? Let’s do the math and see stocks that have the…

Read more »

edit Balloon shaped as a heart
Retirement

3 Stocks Retirees Should Absolutely Love

These three dividend stocks are perfect for retirees wanting not just income, but growth in shares for the foreseeable future.

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Passive Income: How to Make $106 Per Month Tax Free

Holding quality, high-yield dividend stocks such as Freehold Royalties in a TFSA can help you earn tax-free income for life.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Earn a TFSA Paycheque Every Month and Pay No Taxes on it

Stocks like First National Financial (TSX:FN) pay you monthly. You can also earn monthly dividends through portfolio diversification.

Read more »

woman analyze data
Investing

Why I’d Buy Nvidia Stock Even at Today’s Prices

Nvidia’s dominant position in the AI space and the ongoing demand for its GPUs suggest that the stock’s upward trajectory…

Read more »

stock analysis
Dividend Stocks

1 Dividend Superstar I’d Buy Over TD Bank Stock

TD (TSX:TD) stock may look undervalued, but there are reasons for the price drop. Meanwhile, this dividend superstar has more…

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Wednesday, July 17

Trading just below the key psychological level of 23,000, the TSX Composite has been posting fresh record highs for four…

Read more »