3 Top Canadian Stocks to Buy in October

Canadian Tire (TSX:CTC.A), Docebo (TSX:DCBO)(NASDAQ:DCBO), and Dollarama (TSX:DOL) are three top Canadian stocks to buy in October.

| More on:
Hands holding trophy cup on sky background

Image source: Getty Images

Canadian Tire (TSX:CTC.A), Docebo (TSX:DCBO)(NASDAQ:DCBO), and Dollarama (TSX:DOL) are three top Canadian stocks to buy in October. Let’s see why these stocks are great buys.

Canadian Tire

The retailer has been around for almost 100 years and operates multiple locations in Canada, the United States, and Europe. Canadian Tire has one of the strongest brands among consumers in Canada, which is one of the main reasons the stock has been so successful.

However, lately, it has been the company’s impressive integration with its high-quality e-commerce platform that has allowed Canadian Tire to be one of the top performers during the pandemic.

Despite previous lockdowns, it continues to boast a strong balance sheet and has seen a massive tailwind in the wake of the pandemic.

After the pandemic buying boom, the Canadian merchant is expected to take advantage of pent-up demand for more discretionary items.

Its Canadian Tire, L’Équipeur, and Sport Chek brands have attracted customers online, raising annual revenues to $2.1 billion through the collection service.

The slowdown in same-store sales after COVID-19 is concerning, but profitability and compelling valuation matter more.

The retailer is just beginning to capitalize on purchasing data from the 10.4 million members of its Triangle loyalty program, affiliated with the brand’s credit cards.

Canadian Tire’s healthy financial position gives it the flexibility to increase the dividend in addition to resuming share repurchases after a five-year hiatus.


Docebo, a provider of learning management systems for medium and large enterprise clients, is one of my top Canadian stocks to buy in October.

In the pre-COVID era, educational technologies and e-learning had already become a force to be reckoned with, but add a pandemic scenario that kept workers and students at home and on their laptops and you have the makings of a global e-learning boom.

Docebo’s last quarter beat estimates with revenue of $25.6 million (up 76% year on year) compared to a consensus forecast of $23.1 million.

Docebo launches innovative products and extends its geographic presence to expand its customer base and increase the average value of its contracts. It added three new OEMs partnerships in August. In addition, the company derives around 93% of its revenue from recurring sources, which is encouraging.

Docebo’s strong performance, expanding customer base, and growing average contract value make it one of the best tech stocks to buy.


In terms of growth in the retail space, Dollarama has been one of the best Canadian stocks to buy for the past 10 years. 

Dollarama stock may not seem like a great deal currently, given its price/earnings ratio of 29. However, with the negative impact of COVID-19 set to abate over the next year or so, the stock could very well be a bargain.

Dollarama is returning to growth mode, with a long-term goal of opening approximately 2,000 new stores over the next decade. The retailer’s domestic expansion plans could boost the stock.

Ultimately, Dollarama’s foray into new markets with its stake in Dollarcity should improve the company’s overall risk/reward ratio. 

Only time will tell if Dollarama’s entry into new markets will help it continue to grow. As the COVID pressures ease, the stock will return to full growth mode. Dollarama could hit $70 this year.

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 Stephanie Bedard-Chateauneuf owns shares of Dollarama and Docebo Inc. The Motley Fool owns shares of and recommends Docebo Inc.

More on Investing

think thought consider

TSX Stocks Are Still Dirt Cheap! 3 Bargains I’d Buy Today

TSX stocks like Well Health and BlackBerry are digitizing their chosen industries and effectively disrupting the landscape.

Read more »

investment research
Dividend Stocks

Better Buy: Scotiabank or TD Bank Stock?

Take a closer look at Scotiabank and TD Bank stock to determine which might be the better addition to your…

Read more »

retirees and finances
Dividend Stocks

How to Retire in a Bearish Market

Are you looking to retire this year but are skeptical because of the bearish market? Here is a way to…

Read more »

Hand writing Time for Action concept with red marker on transparent wipe board.

2 Seriously Misunderstood Value Stocks to Snap Up Before the Market Figures Them Out

Jamieson Wellness (TSX:JWEL) and another mid-cap stock are worth consideration for your TFSA.

Read more »

Target. Stand out from the crowd
Dividend Stocks

TFSA Investors: 2 Stocks to Buy if the Market Drops Even More

We still aren't in a recession, so we still haven't seen a market bottom. If these stocks drop even more,…

Read more »

analyze data

Why Brookfield Asset Management Could Be One of the TSX’s Best Value Stocks

Brookfield Asset Management (TSX:BAM) is a wonderful dividend-growth stock that's hiding in plain sight right now.

Read more »

Woman has an idea
Dividend Stocks

2 Dirt-Cheap Dividend Shares I’d Buy for Long-Term Passive Income

Dirt-cheap dividend stocks should be evaluated more thoroughly than their more stable counterparts for long-term dividend sustainability.

Read more »

stock research, analyze data
Dividend Stocks

3 Oversold Dividend Stocks (With a 7% Yield) I’d Buy Right Now

TSX dividend stocks such as Enbridge and TC Energy offer investors dividend yields of more than 7% in 2023.

Read more »