The 3 Best Canadian Stocks to Buy During a Market Bottom

These are three of the best Canadian stocks if you are looking for growth in the next few years and decades on the TSX today.

| More on:
stock research, analyze data

Image source: Getty Images

The S&P/TSX Composite Index continues to go through a turbulent beginning to 2022. In fact, as of writing it hit a three-month low. This comes from a variety of reasons, including the increase in inflation, interest rates, tension in Russia and Ukraine, and earnings on the horizon. Yet it’s a great time to look out for the best Canadian stocks during this market bottom.

Motley Fool investors should still see today’s share prices as an opportunity. True, it can be a scary time. But long-term, the TSX goes up. That being said, if risk isn’t your bag, I get that too. Which is why I would take this time to buy up some of the best Canadian stocks you can find for a steal.

Need some options? I’d start with these three high growth stocks.

TD stock

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) has long been one of the best Canadian stocks Motley Fool investors can find on the TSX today. It’s the second-largest of the Big Six Banks, but offers the best growth opportunity.

This comes from the TD stock growing in a variety of sectors. That includes the wealth and commercial management sector, in the U.S., and online. Further, it remains a top revenue creator thanks to its variety of loan repayment plans. And it now has the most credit card partnerships of the Big Six Banks.

Shares of TD stock may be near all-time highs, but it’s still a steal trading at 12.65 times earnings. Further, it increased its dividend to now offer a yield of 3.55%. And it’s likely more are on the way. So TD stock is likely to be one the best Canadian stocks to invest in during the market bottom.

CP stock

Earnings are around the corner for Canadian Pacific Railway (TSX:CP)(NYSE:CP) and long-term Motley Fool investors should be prepared to see a huge increase in debt. This comes from CP stock’s purchase of Kansas City Southern Railway last year. It now has to pay off tens of billions of dollars, and will likely also report the effects of the flooding and snow in B.C. hurting revenue.

Yet again, long-term investors should seek out an opportunity to pick up one of the best Canadian stocks out there. CP stock is now the largest railway in North America, stretching from Vancouver to Mexico. All that revenue will help pay down debt in no time. Further, the recent issues in B.C. have been resolved, allowing for a massive increase in revenue through the rest of the year.

Yet again, it offers a lot of value at 19.69 times earnings, and with analysts predicting CP stock to explode over the next few years. Finally, you also get a solid dividend yield of 0.81% as of writing.

Nutrien stock

Finally, Nutrien (TSX:NTR)(NYSE:NTR) is one of the best Canadian stocks to add to your portfolio for stable growth. The world continues to need arable land, and Nutrien stock offers it by providing crop nutrients. In fact, it’s the world largest producer. That comes from a strong business model as it grows through acquisition.

But during the pandemic, its e-commerce arm expanded by leaps and bounds. It’s now easier than ever for farmers to purchase crop nutrients, at a time when flooding, wildfires, and more hurt yields. Yet after hitting all-time highs, Nutrien stock is down, offering a strong opportunity on the TSX today.

Even still, shares are up 38% in the last year, with a dividend yield of 2.58%. And analysts predict the company to continue rising higher and higher in the years to come. So this is definitely one I’d pick up during this market bottom, and hold onto for decades.

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 Amy Legate-Wolfe owns Canadian Pacific Railway Limited and TORONTO-DOMINION BANK. The Motley Fool recommends Nutrien Ltd.

More on Stocks for Beginners

Stocks for Beginners

New to the TFSA? 4 TSX Stocks to Buy With $6,000

The tech stock selloff has created a March 2020-like opportunity to buy the dip. Here are four stocks to buy…

Read more »

Young woman sat at laptop by a window
Stocks for Beginners

New Investors: Start Investing in 2 Dividend Stocks With Peace of Mind

New investors who don't want to spend too much time managing their investments can consider buying these dividend stocks.

Read more »

Couple relaxing on a beach in front of a sunset
Stocks for Beginners

How to Create a Complete “Lazy” Stock Portfolio With Just 4 BlackRock ETFs

Want a cheap, effective, and hands-off approach to investing? Give this article a read.

Read more »

You Should Know This
Stocks for Beginners

The Advantages and Disadvantages of Buying High-Yield Dividend Stocks

If you're considering buying high-yield stocks for your portfolio, especially in this environment, here's what to consider first.

Read more »

Growing plant shoots on coins
Stocks for Beginners

Bear Market: Your Chance to Create Serious Wealth With 2 Growth Stocks

Bear markets bring incredible wealth-creation opportunities for new investors. Here's why you should focus on solid growth stocks.

Read more »

Volatile market, stock volatility
Stocks for Beginners

What Investors Can Learn From the Last 3 Market Corrections

No one can predict market corrections, but we can learn by looking back at the last few on the TSX…

Read more »

Money growing in soil , Business success concept.
Stocks for Beginners

Convert $50,000 Into $500,000 in Tax-Free Income With 4 TFSA Stocks

If you buy four TFSA growth stocks in today’s market dip, they could convert $50,000 to $550,000 in 10-17 years.…

Read more »

Profit dial turned up to maximum
Stocks for Beginners

5 Investing Rules to Make Money in Today’s Stock Market 

The pandemic bubble has burst, and interest rate reality strikes. Make the most of this market with five investing principles.

Read more »