North American markets have continued to build momentum into the late summer of 2021. This has some analysts and investors worried about a market top. Rising COVID-19 cases are a concern for the broader economy, but the current climate is still bullish. Interest rates remain at historic lows, and central banks have made an accommodating monetary policy a priority. A sudden and deep correction appears unlikely in this climate. Today, I want to look at three top Canadian stocks that are still worth snatching up before the end of the summer. Let’s dive in.
Here’s why Enbridge is a top Canadian stock you need to own
Enbridge (TSX:ENB)(NYSE:ENB) is one of the largest Canadian stocks by market cap and one of the biggest energy giants in North America. Shares of Enbridge have climbed 24% in 2021 as of close on September 9. The company unveiled its second-quarter 2021 results on July 30. It was a strong quarter that saw Enbridge deliver adjusted net earnings of $1.4 billion, or $0.67 per common share — up from $1.1 billion, or $0.56 per common share, in the prior year.
The company made headlines in September, as it announced that it had entered a definitive purchase agreement with EnCap Flatrock Midstream to acquire Mod Midstream Operating LLC. This move aligns with Enbridge’s broader strategy, and it made the acquisition at a solid price. Investors should be happy with this development.
Last November, I’d discussed why Enbridge was a Canadian stock worth owning for the long haul. It has delivered 25 consecutive years of dividend growth. Better yet, it possesses a favourable price-to-earnings (P/E) ratio of 16.
This tech stock looks poised for another run
Kinaxis (TSX:KXS) is an Ottawa-based company that provides cloud-based subscription software for supply chain operations around the world. Its leading software has attracted top companies like Ford, Unilever, and others in recent years. Shares of this Canadian stock have climbed 10% in 2021 as of close on September 9. The stock is up 8.6% year over year.
In Q2 2021, the company delivered SaaS revenue growth of 18% to $42.3 million. However, profit and adjusted EBITDA slid over the previous year due to a historically strong second quarter of 2020. Shares of this top Canadian stock are trading in favourable value territory relative to its industry peers. It is well worth picking up for the long haul.
One more Canadian stock to snatch up in September
Dollarama (TSX:DOL) is the largest dollar store chain operator in Canada. Its shares have climbed 6.6% in the year-to-date period. Inflation has hit consumers hard in Canada in 2021. Dollarama is well positioned to take advantage of these price pressures and should receive a boost as it is able to sell non-essential items once again.
The company unveiled its second-quarter fiscal 2022 results on September 9. Sales rose 1.6% from the prior year to $1.02 billion. Meanwhile, EBITDA rose 5.7% to $293 million. Shares of this top Canadian stock last had a P/E ratio of 29, putting it in solid value territory.
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 Ambrose O'Callaghan has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends KINAXIS INC and Unilever.