Earnings season has been winding down, and, for the most part, the economy has been recovering well. Plenty of stocks have surprised to the upside, while others have struggled to recover. Investors have gotten a lot of information to dissect the last two weeks, but clearly, some companies have emerged as the best stocks to buy now.
The world is changing, whether it’s green energy becoming increasingly crucial, e-commerce continuing to grow, or even the cryptocurrency industry revolutionizing technology.
It’s important to find companies that can grow and adapt to these ever-changing conditions. Of course, finding a disruptor that’s helping to lead the change is ideal. But, at the very least, you want stocks that can continue to adapt and grow their businesses in these changing market conditions.
With that in mind, after dissecting the earnings from the most recent quarter, here are two of the best stocks to buy now.
A top financial company to buy for the long run
One of the best stocks in Canada, and therefore a top stock to buy now, is Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM).
Brookfield is a massive financial stock with investments in multiple sectors of the economy. The company’s asset management is its bread and butter, though. And in recent years, it has been attracting a tonne of new capital from investors.
With interest rates low, investors have been looking for alternative investments to earn a solid yield on their capital. So, it’s no surprise that fee-bearing capital has increased again. At the end of the second quarter, fee-bearing capital was up 17% year over year to a whopping $325 billion.
This is important, because it shows how much investors trust Brookfield to protect and grow their money. However, it also shows the influence that Brookfield has and the ability to source massive investments worldwide.
Brookfield is one of the best stocks in Canada to buy now and hold for years. Over the last decade, the growth stock has earned investors a total return of more than 550%, or a compounded annual growth rate above 20%.
So, if you’re looking for one of the best stocks to buy now, Brookfield is a solid choice.
One of the best Canadian retail stocks to buy now
In addition to Brookfield, another high-quality company that just reported impressive earnings is Canadian Tire (TSX:CTC.A).
Despite the fact that the pandemic has heavily impacted retail, Canadian Tire continues to show it’s one of the best stocks to buy now.
For years, it’s been a top retailer in the country, as Canadian Tire has had one of the strongest brands and great customer loyalty. In recent years, though, it’s been acquiring other retailers and businesses, which look to have solidified its operations and helped make it the powerhouse that it is today.
Not only that, but a major priority from Canadian Tire over the last few years has been the buildout of its e-commerce site. And throughout the pandemic, especially the most recent quarter with all the shutdowns, having a strong e-commerce channel has been crucial to weathering the storm.
In the last 12 months, Canadian Tire has done over $2 billion in sales on its e-commerce website. That’s compared to roughly $500 million per year before the pandemic. So, it’s clear just how much the stock has benefitted from increased shopping online.
Its most recent earnings were extremely impressive, reminding us that Canadian Tire is one of the best stocks to buy now. Both the retail side of its business and its financial services segment look like they are having impressive recoveries.
So, if you’re looking for a top retail stock to add to your portfolio, Canadian Tire continues to show it’s one of the best in Canada.
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 Daniel Da Costa owns shares of Brookfield Asset Management Inc. CL.A LV. The Motley Fool owns shares of and recommends Brookfield Asset Management. The Motley Fool recommends Brookfield Asset Management Inc. CL.A LV.