2 Trending TSX Stocks to Buy Right Now for Solid Returns

Alimentation Couche-Tard (TSX:ATD.B)(TSX:ATD.A) and NFI Group (TSX:NFI) are two of the trending Canadian stocks right now that could help you get solid returns on your investment.

| More on:
investment research

Image source: Getty Images

As the market continues to rally, investors are increasingly finding it difficult to pick good stocks that have the potential to yield solid returns in the coming quarters. But thankfully, the ongoing economic recovery and rising consumer spendings are boosting corporate earnings. This positive earnings growth trend is likely to drive these two Canadian stocks higher in the coming quarters, I believe. Let’s take a closer look.

Alimentation Couche-Tard stock

Alimentation Couche-Tard (TSX:ATD.B)(TSX:ATD.A) could be one of the most attractive TSX stocks to buy today. The company has a large chain of convenience and fuel retail stores in 26 countries and territories. Its stock is currently trading at $51.21 per share with 18% year-to-date gains as it has surged by 12.4% in the ongoing quarter alone.

In the fourth quarter of its fiscal 2021, Couche-Tard’s revenue growth trend turned positive after declining in the previous four quarters in a row. The company registered 26.3% year-over-year (YoY) growth in its Q3 revenue to US$12.2 billion. Gradually lifting restrictive social measures, improving food segment demand, and higher fuel margins helped Couche-Tard post stronger earnings growth.

Its adjusted earnings in the April quarter rose by nearly 11% YoY — beating analysts’ earnings estimates by nearly 23%. Interestingly, it was the fifth consecutive quarter when the company continued to post positive earnings growth despite facing COVID-19-related headwinds.

Also, Couche-Tard’s management seems to have increased its focus on new acquisitions lately that could help the company achieve stronger financial growth in the long term. I expect continuously reopening economies to drive more traffic to Couche-Tard stores in the coming quarters and drive its stock higher.

NFI Group stock

NFI Group (TSX:NFI) is a Winnipeg-based bus and motorcoach maker that’s eyeing the fast-growing demand for mass mobility around the world. I find its focus on zero-emission mobility and smart mobility solutions quite interesting and futuristic. The company currently has a market cap of $2.2 billion as its stock trades around at $31.54 per share.

In August so far, NFI Group stock has surged by more than 16% as its latest quarterly results showcased a significant financial recovery. In the June quarter, the company registered a 75% YoY rise in its revenue. Consistently improving demand helped NFI report adjusted earnings of US$0.12 per share.

With this, it crushed analysts’ estimates of US$0.03 loss per share by a wide margin. While COVID-19 related headwinds are still hurting NFI Group’s overall business growth, it highlighted encouraging signs of market recovery in its latest quarterly report.

A consistent recovery could help the company post strong financial recovery in the coming quarters — much sooner than expected. That’s why you may want to add this one of the best Canadian stocks to your portfolio, which is trading with 31% year-to-date gains right now.

Foolish takeaway

As always, Motley Fool investors are already gaining big from the ongoing market rally. They can add some rallying and fundamentally strong stocks like Couche-Tard and NFI to their portfolio right now to get even higher returns on their investment in the long run.

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.

The Motley Fool owns shares of and recommends ALIMENTATION COUCHE-TARD INC. The Motley Fool recommends NFI Group. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Stocks for Beginners

money cash dividends
Stocks for Beginners

Have $500? 3 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now

If you're looking for cheap stocks, these three have a huge future ahead of them, all while costing far less…

Read more »

edit Woman in skates works on laptop
Dividend Stocks

3 No-Brainer Stocks to Buy Under $30

These three stocks all offer a huge deal for investors looking for dividends, as well as growth that will last.

Read more »

edit Sale sign, value, discount
Stocks for Beginners

These 3 Growth Stocks Are on Sale and Set to Surge

Some growth stocks are on sale right now that offer massive long-term potential for investors. Here's a trio to consider…

Read more »

Plane on runway, aircraft
Stocks for Beginners

Up 53% From its 52-Week Low, Is Cargojet Stock Still a Buy?

Cargojet (TSX:CJT) stock is up a whopping 53%, nearing closer to 52-week highs from 52-week lows, so what's next for…

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

potted green plant grows up in arrow shape
Stocks for Beginners

3 Growth Stocks I’m Buying in April

These three growth stocks are up in the last year, and that is likely to continue on as we keep…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »