Top 3 TSX Stocks to Buy Now

These three TSX stocks are at the top of my watch list. Together, the three picks can provide your portfolio with growth, passive income, and dependability.

| More on:
stocks rising

Image source: Getty Images

With the Canadian market trading at all-time highs today, it’s not a cheap time to be investing in stocks. The S&P/TSX Composite Index is up over 20% this year and isn’t showing many signs of slowing down.

As a long-term investor, I’m not letting the market’s rich valuation significantly impact my investing strategy. My focus remains on buying high-quality companies and holding for the long-term. 

What has changed for me in the past few months is the types of stocks I’m buying right now. I’m primarily a growth investor that owns companies with steep price tags and high-growth multiples. But when looking at the current bull run we’re riding and the market’s valuation, my watch list has a few more value-oriented stocks on it than it usually does.

I’ve put together a well-diversified basket of three top Canadian stocks. Each of the companies is high up on my watch list right now. Whether you’re looking for growth, passive income, or value, this basket has you covered. 

Lightspeed Commerce

Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) is by far the most expensive company in this basket. Shares are trading at a price-to-sales above 20 today. It’s not the most expensive stock on the TSX but there’s no question it’s a richly valued company.

The tech stock is down close to 50% from all-time highs. A short report in September and the company’s quarterly earnings release in November both sent the stock spiralling downward. 

Lightspeed managed to deliver year-over-year quarterly revenue growth of close to 200% in its most recent quarter. Management is committed to its growth strategy, which is why investors are willing to pay a premium to own shares of this high-priced growth stock.   

Sun Life

To balance out the first pick in this basket, I’ve included a steady dividend-paying insurance stock. Also, Sun Life (TSX:SLF)(NYSE:SLF) is trading at a very reasonable price right now.

At a market cap of $40 billion, Sun Life is the second-largest insurance provider in the country. In addition to its strong Canadian presence, Sun Life has operations spread across the globe. The company is focused on increasing its international market share, most notably in Asia, which Sun Life claims to be one of its fastest-growing regions.

While Sun Life is no stranger to outperforming the market, growth isn’t the main reason it’s on my watch list. Volatility levels tend to be relatively low with insurance stocks. While it’s not the fastest-growing area of the market, it is a dependable one.

The insurance stock is trading at a forward price-to-earnings of barely over 10 today. At a price like that, even value investors would be wise to have Sun Life on their watch lists.  

goeasy

goeasy (TSX:GSY) has quietly been one of the top-performing stocks on the TSX in recent years. Considering the growth the stock has put up in recent years, it’s surprising that goeasy doesn’t receive more attention. 

Shares are up close to 700% over the past five years and more than 3,000% over the past decade.

The $3 billion company provides all kinds of different personal loans to its Canadian customers. With interest rates as low as they are today, it’s not a surprise to see the company doing well. But I’ve got goeasy on my watch list because I don’t think the demand for its products will be going to slow anytime soon.

As we slowly continue to return to our pre-COVID-19 lifestyles, an increase in consumer spending would not at all be a surprise to see. And if that does indeed happen, goeasy could see a massive rise in demand in some of its personal loan categories.

With the stock’s growth slowing in recent years, another seven-bagger over the next five years is a lot to ask. I would, however, be comfortable betting on many more years of market-beating growth for goeasy.

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 Lightspeed POS Inc. The Motley Fool recommends Lightspeed POS Inc.

More on Tech Stocks

Silver coins fall into a piggy bank.
Tech Stocks

How to Turn a $500 TFSA or RRSP Into $50,000

Are you looking to convert a $500 TFSA into $50,000? A little discipline and patience can help you achieve it.…

Read more »

potted green plant grows up in arrow shape
Tech Stocks

3 High-Growth Tech Stocks With More Potential Than Any Cryptocurrency

These tech stocks are due for a huge rebound, and far sooner than anything you'll see from cryptocurrency stocks.

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Tech Stocks

5 Growth Stocks You’ll Want to Own Before the Next Market Rally

Canadian investors can consider investing in quality growth stocks such as Shopify and Snowflake to benefit from exponential gains.

Read more »

A shopper makes purchases from an online store.
Tech Stocks

Is it Time to Buy e-Commerce Stocks?

E-commerce plays like Shopify stock are out of favour, but could be set for a breakout.

Read more »

A plant grows from coins.
Tech Stocks

Is Now the Right Time to Buy Growth Stocks?

Growth stocks have taken a major hit this year. Is now the right time to start buying them again?

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Tech Stocks

1 Surprising Stock That Has Survived the Market Selloff

Growth investors with some cash to spare should have this under-the-radar tech stock on their shopping list this holiday season.

Read more »

stock data
Tech Stocks

If I Could Only Buy 1 Stock Before 2023, This Would Be It

This stock is the one company that really doesn't deserve its ultra-low share price, so I'll definitely pick it up…

Read more »

consider the options
Tech Stocks

WELL Health Stock Rose 3.4% in November – Is it a Buy Today?

The last few years have been explosive for Well Health. Take advantage of current stock price weakness to gain exposure.

Read more »