The 3 Best Canadian Stocks to Buy This Month

Last-minute holiday shoppers should have these three top Canadian stocks on their watch lists this month.

Dollar symbol and Canadian flag on keyboard

Image source: Getty Images

The market’s recent volatility has presented holiday shoppers with some last-minute gift ideas. 

The S&P/TSX Composite Index is still up 20% on the year, but the index is down close to 5% from all-time highs. The new COVID variant sent the market tanking in mid-November, leaving plenty of uncertainty in the last month of the year. 

Long-term Foolish investors have no reason to be concerned with the market’s pullback. In fact, I’d strongly urge Canadian investors to take advantage of the market’s drop and put some cash to work. There are plenty of top Canadian stocks trading at opportunistic discounts today. 

Here’s a list of three Canadian companies to put on your shopping list this holiday season. 

Shopify

If you’re waiting for Shopify (TSX:SHOP)(NYSE:SHOP) stock to be considered cheap, you may be waiting a while. Ever since the tech company joined the TSX, it’s been richly valued. It’s also been delivering market-crushing gains since it went public in 2015. Shopify shareholders have endured their share of volatility, but it’s been well worth it so far.

The Canadian stock’s $285 billion market cap ranks it as the largest company in the country. You could argue that Shopify’s massive size may limit its multi-bagger growth potential in the coming years. While I wouldn’t necessarily disagree with that, there’s no part of me that believes the tech stock will begin trailing the market’s returns anytime soon.

Even at its current market cap size, the company is still managing to grow revenue at an incredibly impressive rate. The e-commerce market opportunity only continues to grow each year, which is why I wouldn’t bet against this richly valued tech stock anytime soon.

Down 10% from all-time highs, this may be a wise end-of-year purchase for Canadian investors.

Kinaxis

Kinaxis (TSX:KXS) is no value stock, but it is trading at a valuation much cheaper than Shopify. It’s also down 20% from all-time highs. Growth investors will want to keep a close eye on this discounted Canadian stock in December. 

Another reason to have Kinaxis on your watch list this holiday season is due to the market that it operates in. The company designs all-important software for supply chain management operations. And with many companies across the globe suffering from supply chain issues, it’s no surprise that Kinaxis has been enjoying a spike in demand this year.

Brookfield Renewable Partners

Last on my list is another discounted Canadian stock with a market-beating track record. In Brookfield Renewable Partners’s (TSX:BEP.UN)(NYSE:BEP) defence, most stocks in the renewable energy sector are trading at a loss this year.

Shares of the Canadian stock are down more than 20% in 2021. Especially considering the market is up by about that much, it’s been a tough year to own renewable energy stocks. Still, many renewable energy stocks, including Brookfield Renewable Partners, have outperformed the market over the past five years.

The long-term growth potential for the renewable energy sector is no secret to investors. Both demand and consumption for renewable energy sources in North America have been steadily rising for a number of years now. 

If you’re bullish on the rise of renewable energy, now’s the time to be investing. These discounted prices won’t last long.

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 Brookfield Renewable Partners and Shopify. The Motley Fool owns and recommends Shopify. The Motley Fool recommends KINAXIS INC.

More on Investing

stock research, analyze data
Dividend Stocks

How Much to Invest to Get $500 in Dividends Every Month

TSX dividend stocks such as Enbridge, TD Bank, and Telus, can help you earn $500 in monthly dividend payments.

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

Clean Energy Play: Is Brookfield Renewable a Good Stock for a TFSA?

Add this top renewable energy stock to your self-directed TFSA portfolio for significant long-term and tax-free wealth growth.

Read more »

Golden crown on a red velvet background
Dividend Stocks

Dividend Powerhouses: Canadian Stocks to Fuel Your Portfolio

These two top Canadian dividend aristocrats are some of the top stocks on the TSX to buy now and hold…

Read more »

Dial moving from 4G to 5G
Dividend Stocks

This Undervalued Dividend Stock is Worth Buying Right Now

Want an undervalued dividend stock with long-term potential and a juicy yield? Here's an option you may regret not buying…

Read more »

A worker gives a business presentation.
Dividend Stocks

1 Stock I’m Buying Hand Over Fist in July Despite the Market’s Pessimism

This top dividend stock is going through a rough patch, but don't let that count out all the growth we've…

Read more »

financial freedom sign
Investing

2 Stocks With Millionaire-Maker Potential

These two top Canadian stocks are among the best on the TSX, and each has the potential to be millionaire-maker…

Read more »

Piggy bank next to a financial report
Stocks for Beginners

Is It Finally the Right Time to Buy Bank Stocks?

Canadian bank stocks are some of the most secure investments out there, but of them all, this bank stock is…

Read more »

clock time
Investing

3 Blue-Chip Stocks Every Canadian Should Own

Want some reliable blue-chip Canadian stocks to buy and hold for the next 10 years? These three stocks are worth…

Read more »