3 Canadian Stocks That Analysts Think Could Soar at Least 25% in the Next 12 Months

Here are three high-quality Canadian stocks to own for the long haul that offer attractive value in the short term as well.

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Analysts play an important role in modern finance. While you can’t rely on analysts to be correct all the time, they know the companies they are covering inside and out. When several analysts are bullish on certain Canadian stocks, it’s worth it to research them for yourself and see if they’re worth an investment.

With that in mind, if you’re looking to find a high-quality stock that offers attractive value today, here are three Canadian stocks that analysts are expecting to soar at least 25% over the next year.

One of the best Canadian tech stocks

This may come as a surprise to some investors, but one stock that analysts think can soar by 26% over the next 12 months is Shopify (TSX:SHOP)(NYSE:SHOP), the massive e-commerce company. As of Wednesday’s close, Shopify traded for just $1,681 a share. Meanwhile, the average target price from analysts was more than $2,120.

So, investors can buy the stock today at a significant discount, partly due to the selloff that Shopify has seen in the last few weeks and partly due to the growth that it’s expected to achieve over the next year.

A 26% premium is a significant amount, especially for a stock with a market cap of more than $200 billion and is one of the highest-potential growth stocks in the country. E-commerce has seen massive growth in recent years. However, as companies continue to scale, costs keep coming down, and logistics are constantly improving, the industry has an enormous runway for growth.

If you’re looking to buy a top Canadian stock today, buying Shopify with more than 25% upside in the short run, in addition to all the long-run potential it offers, is one of the best opportunities there is.

A top Canadian gold producer

Another high-quality Canadian stock that offers investors an excellent opportunity today is B2Gold (TSX:BTO)(NYSE:BTG). The gold producer closed the Wednesday trading session at $5.46 per share. However, analysts think the stock is worth far more than that.

Currently, the average target price for B2Gold shares is $8.22, that’s more than 50% above where B2Gold is trading today. There are several reasons why B2Gold could rally over the next 12 months.

First, it’s exceptionally cheap at $1,800 gold prices. The company is one of the lowest-cost producers in the industry and earns incredible cash flow. At current prices, B2Gold is trading at a forward enterprise value to EBITDA ratio of just 3.4 times.

Furthermore, gold prices have the potential to rally and have already been gaining slightly in recent weeks as inflation continues to soar. Currently, at more than $1,800, gold prices are now just 13% off their all-time high reached last year.

So, if you’re looking for a stock that’s trading exceptionally cheap, earns tonnes of cash flow, and even pays a 3.7% dividend, B2Gold is one of the cheapest Canadian stocks to buy today.

A massive Canadian financial stock

Lastly, another top Canadian stock to own long term that also happens to offer a tonne of potential in the short run is Manulife Financial (TSX:MFC)(NYSE:MFC). Manulife is a major financial services company with operations in Canada, the United States and Asia.

The Canadian stock closed Wednesday’s trading day at $24.63. Its average target price, however, is $33.76. That’s a 37% premium, which, again, like Shopify, is a massive discount for such a large company with global operations.

The stock is certainly cheap. There’s no doubt about that. And because its business will benefit massively as interest rates start to rise, the stock looks like it has a tonne of potential over the next 12 months and is likely the biggest reason for all the optimism from analysts.

Plus, just like B2Gold, it offers an attractive yield to investors who are willing to buy the stock and wait for it to recover. Currently, Manulife yields upwards of 4.5%. So, if you’re looking for a top opportunity today, Manulife is one of the best Canadian stocks to buy now.

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 Daniel Da Costa owns shares of B2GOLD CORP. and MANULIFE FIN. The Motley Fool owns shares of and recommends Shopify. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.

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