3 Canadian Stocks to Buy Before Lightspeed Stock (TSX:LSPD)

While others continue watching Lightspeed stock (TSX:LSPD)(NYSE:LSPD), Motley Fool investors should watch these Canadian stocks to buy.

| More on:
Woman has an idea

Image source: Getty Images

I get it. Motley Fool investors want growth stocks these days. That’s why companies like Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) have seen such popularity. Lightspeed stock has become one of the top Canadian stocks to buy among growth stocks this year. Well, at least it was.

It’s clear why. Shares of Lightspeed stock climbed 77% by late September since the beginning of January. The company was in acquisition overload, buying up companies to become a worldwide e-commerce phenomenon.

However, a recent report by Spruce Point put all that into question. The report stated Lightspeed stock and all its metrics were nothing but “smoke and mirrors” and “covered up” by the “flurry of acquisitions.”

Lightspeed stock has stated that these accusations are false. However, it has to be said after dropping 30% since the announcement it’s likely not one of the best Canadian stocks to buy on the TSX today.

So, what is?

You can still find growth stocks

If you’re looking for growth stocks among Canadian stocks to buy, I actually would stay away from the headlines. Instead, look for companies that have been quietly growing behind the scenes. You can start by looking at sectors that are due to rise.

One sector I would consider is infrastructure. And not just because of the pandemic. True, infrastructure has a lot of opportunities ahead from the pandemic backlog. But it also has future opportunities ahead with the renewable energy infrastructure coming down the line.

Furthermore, I would then look at real estate for Canadian stocks to buy — though not the obvious downtown choice of real estate as people get back to work. Everyone has already been there, done that on the TSX today. Instead, find infrastructure investors that will see major growth from the boom in building over the next decade.

Finally, air traffic is going to increase. But again, commercial flights aren’t likely to take off that quick. Instead, find a company that is going to take off far sooner — one that doesn’t depend on a pandemic rebound and can continue running for years.

Where are these miraculous stocks?

Let’s start with infrastructure. If you’re looking for a company that’s going to boom in the next decade, I would consider SNC Lavalin Group (TSX:SNC). Yes, I know of all the allegations and charges of fraud, bribery, and corruption. However, there was an incredible shakeup of management, and today it’s an entirely new company. Quite literally.

And today it has a backlog of projects worth $11.1 billion, and continues to win contract after global contract to create a solid cash stream for the next decade and beyond. Shares are up 50% year to date, but going through a pullback due to the market-wide pullback on the TSX today. That’s what makes it a top contender among Canadian stocks to buy.

Then I would consider Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP). Brookfield will also benefit from the boost in infrastructure over the next decade and beyond. It recently acquired Inter Pipeline to take over the company’s infrastructure and is a stellar buy for further growth opportunities. Shares are up 16% year to date, with earnings per share set to explode in 2021 alone.

Finally, I would then consider Cargojet (TSX:CJT) one of the best Canadian stocks to buy for Motley Fool investors. It’s been flying high due to e-commerce and a partnership with Amazon. Further, it’s expanding its destinations and fleet of aircraft. While shares are down from all-time highs, it’s now a solid buy based on future growth. Analysts predict an average potential upside of 30% as of writing.

Foolish takeaway

While everyone else forgets about these stocks, Motley Fool investors can be confident in their growth. Not just now, but over the next decade and beyond. That’s what makes these three stocks the best Canadian stocks to buy right now.

Sorry, Lightspeed stock.

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.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Amy Legate-Wolfe owns shares of CARGOJET INC. and Lightspeed POS Inc. The Motley Fool owns shares of and recommends Amazon, CARGOJET INC., and Lightspeed POS Inc. The Motley Fool recommends Brookfield Infra Partners LP Units and Brookfield Infrastructure Partners and recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon.

More on Coronavirus