2 Top Canadian Stocks to Buy After Their Earnings Reports

These two top Canadian stocks look like attractive additions to your investment portfolio for long-term returns.

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The Canadian stock market became quite volatile towards the end of October 2021 but has since hit new all-time highs. At writing, the S&P/TSX Composite Index is at a record 21,556.54 points, up by almost 23% year to date. The move comes, despite the announcement from the Bank of Canada about the intention to increase interest rates earlier than anticipated.

As we near the end of the year, many publicly listed Canadian companies released their earnings reports. The earnings reports unveiled many undervalued stocks that could be ideal picks for value-seeking investors that you could consider having on your radar.

Today, I will discuss two such stocks that you should keep a close eye on after the earnings reports came out.

Waste Connections

Waste Connections (TSX:WCN)(NYSE:WCN) stock had a stellar performance in the third quarter for fiscal 2021, boasting adjusted earnings-per-share growth of 23.6% and top-line growth of almost 15%. Its adjusted EBITDA margin improved to 31.7%. The company raised its shareholder dividends by 12.2% in the quarter, marking the 11th year of shareholder dividend growth.

As the global economic expansion continues, favourable industry trends could create the ideal environment for Waste Connections to see its financials grow. The increasing demand for its service combined with new acquisitions could provide further growth for Waste Connections stock in the coming months.

At writing, the stock is trading for $167.65 per share, and it boasts a 0.68% dividend yield.

Suncor Energy

Suncor Energy (TSX:SU)(NYSE:SU), much like its peers in the energy industry, had a tough year in 2020, but the energy company has since seen a far better performance in 2021 on the stock market. The company’s third-quarter earnings for fiscal 2021 saw Suncor Energy report $1.043 billion in operating profits — a massive improvement from its $338 million in the same quarter last year.

Surging demand, higher commodity prices, improved production and output, and a decline in depreciation, depletion, and amortization combined to grow its funds from operations to $2.64 billion. The company slashed its shareholder dividends in 2020 as a preemptive measure to protect its financials amid the pandemic. Presently, Suncor is focusing on reducing its debt levels and rewarding its shareholders with share repurchases.

At writing, the stock is trading for $32.84 per share, and it boasts a juicy 5.12% dividend yield.

Foolish takeaway

As the broader stock market enters new territory, the overpriced environment might worry many investors who are afraid of a pullback on the horizon. In the last few weeks, the surge for the benchmark index has made many investors hopeful about growth stocks that could provide them with substantial and rapid wealth growth.

However, it is crucial to consider investing in high-quality stocks that have stellar performances and good long-term performances that you can rely on. Waste Connections stock and Suncor Energy stock are two such assets that you could consider adding to your portfolio for this purpose.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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