The Canadian stock market has been riding an incredible bull run for the past year and a half. Since the COVID-19 market crash in early 2020, the S&P/TSX Composite Index is up more than 70%.
As we gradually near the country’s reopening, I’m not expecting this bull run to end just yet. We’re certainly due for a pullback at some point, but I wouldn’t be selling any positions now trying to time the market’s top.
Rather than selling at market highs, I’m looking to add new Canadian stocks to my portfolio. Many top TSX stocks are trading at serious premiums right now, though, so I’m being cautious about how I’m investing my cash today.
Since my portfolio is predominantly filled with high-priced growth stocks, price is top of mind for me, as I’m planning my portfolio’s next buys. With that in mind, here’s a basket of three top Canadian stocks that you can own for just $300.
At a price-to-sales ratio of 40, Nuvei (TSX:NVEI) is not exactly a value stock. In fact, it’s one of the more expensive stocks on the TSX. It has been on my watch list for a few months, though, and is much cheaper than one of its main competitors, Lightspeed.
The Canadian stock has been lights out since it joined the TSX last year. Shares are up 250%, and the stock is now valued at a monster market cap above $20 billion. That puts it at roughly the same size as Lightspeed.
What has me bullish on Nuvei is the growth opportunity in the payment processing market. We’ve been witnessing a rise in digital payments for years now, and I don’t expect that to slow down anytime soon.
The tech stock’s valuation isn’t cheap, but it’s trading around $150 a share. That’s much lower than what some other top tech stocks on the TSX are trading at today.
To balance out the high-growth pick on this list, Nuvei, I’ve included a top value stock.
Toronto-Dominion Bank (TSX:TD)(NYSE:TD), along with the rest of the Big Five, is very reasonably priced, considering what it offers shareholders. For a price-to-earnings ratio barely over 10, TD Bank stock is a steal. Shareholders earn passive income through a top dividend, have the potential to earn market-beating growth, and can depend on the Canadian stock over the long term.
The Canadian banking sector might not be the fastest growing, but it’s one that has been depended on by both investors and consumers for many years.
In addition to that, TD Bank offers shareholders exposure to non-Canadian markets. It’s ranked as a top-10 bank in the U.S., based on total asset size. That U.S. presence provides shareholders with much-needed diversification from the Canadian economy.
Brookfield Renewable Partners
Last on my list is a beaten-down renewable energy stock. Shares of Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) are up a market-crushing 145% over the past five years, but the Canadian stock is down 10% year to date and 20% below all-time highs.
The company had a strong year in 2020, along with many others in the renewable energy space. But it’s been a different story in 2020, with many leaders in the sector trailing the market.
I’m a mega-bull on the growth of renewable energy, which is why Brookfield Renewable Partners is at the top of my watch list this month. I’m already a satisfied shareholder, but at these prices, it’s hard to not want to add to my position.
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 Nicholas Dobroruka owns shares of Brookfield Renewable Partners and Lightspeed POS Inc. The Motley Fool owns shares of and recommends Lightspeed POS Inc. The Motley Fool recommends Nuvei Corporation.