5 Top TSX Stocks to Buy in March 2022

Buying a diversified group of top TSX stocks when they are trading at good valuations and holding for a few years is a good way to go.

Hands holding trophy cup on sky background

Image source: Getty Images

Our Foolish Canadian writers came up with 18 top TSX stock ideas for March 2022. Other than Manulife (TSX:MFC)(NYSE:MFC) stock, which I find to be attractive for income, I reviewed the list and picked out four others that also look interesting as top picks.

Magna International stock

After a spectacular rally of 257% from $35 per share during the onset of the pandemic to $125 per share in early 2021, Magna International (TSX:MG)(NYSE:MGA) stock has come crashing down. Yesterday alone, the global auto parts stock declined 7.7% to $73.38 per share. Expect high volatility in the stock in the short term, as oil prices seem to roar higher every day from the Russia-Ukraine conflict.

After tumbling drastically for a couple of months, the cyclical stock is getting close to its long-term normal valuation. Interested investors can consider starting to peck at the Canadian Dividend Aristocrat in March 2022 for an investment of three to five years. Magna stock currently yields 3.1% and trades at roughly 9.2 times this year’s earnings. Its three-year dividend-growth rate is 9.1%.

goeasy stock

Similarly, goeasy (TSX:GSY) stock is also beginning to look compelling for long-term investment. After being a seven-bagger from the pandemic market crash of about $30 per share to its glory height of $220 per share in late 2021, the growth stock has come crashing down to $127.78 per share.

There was too much euphoria in the solid growth stock before. Now that the stock’s valuation has reverted close to the mean, it’s a good time to begin accumulating shares in March 2022. The Canadian Dividend Aristocrat is a good long-term investment. goeasy stock currently yields 2.8%, and its 15-year dividend-growth rate is about 17%.

Shopify stock

I’m not sure about other investors, but I have hidden my Shopify (TSX:SHOP)(NYSE:SHOP) shares under my carpet where I can’t see them. Basically, many growth stocks and high-growth tech stocks have been thrown out of investors’ portfolios, as some pundits say the table has turned, and value stocks, like energy stocks, are leading the gains now.

Shopify stock has fallen two-thirds from its high. I don’t know how long people would need to wait for the stock to turn around, but patient investors should consider buying some shares of Shopify stock now that appears to be dirt cheap from analysts’ consensus price target of $1,965 and change per share.

Gildan Activewear

Gildan Activewear (TSX:GIL)(NYSE:GIL) stock also appears interesting for a nibble in March 2022. It appreciated more than 267% from the pandemic market crash low of $15 per share to as high as $55 per share. It has corrected about 17% from the high. Last month, it increased its dividend by 9.7%. At $45.60 per share, it yields 1.9%.

The apparel manufacturer is considered a consumer cyclical stock. At writing, it trades at a decent discount of 28% from the analyst consensus 12-month price target. Long-term investors can start a position here and buy more shares if it falls to the mid-$30s.

Manulife stock

Manulife is a value and income stock. At $24.78 per share at writing, it trades at about 7.5 times earnings, while analysts are estimating an earnings-per-share growth rate of 9% over the next few years. As earnings grow and it increases its dividend, its stock price should follow steadily higher.

In the worst-case scenario, you get a juicy, 5.3% yield. Its $1.32-per-share annualized payout is well covered with a payout ratio of about 37% of this year’s earnings. It’s paid out on a quarterly basis. Long-term investors are better off parking money in this high-yield name than in low-risk but low-return GICs.

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.

The Motley Fool owns and recommends Shopify. The Motley Fool recommends GILDAN ACTIVEWEAR INC. and Magna Int’l. Fool contributor Kay Ng owns shares of goeasy, Manulife, and Shopify.

More on Investing

young woman celebrating a victory while working with mobile phone in the office
Dividend Stocks

3 CRA Benefits Most Canadians Can Grab in 2024

You can save on taxes by claiming the dividend tax credit on Fortis Inc (TSX:FTS) shares.

Read more »

A cannabis plant grows.
Cannabis Stocks

Canopy Growth Stock Is Rising But I’m Worried About This One Thing

Canopy Growth stock is soaring as the legalization effort makes real progress in both Germany and the United States.

Read more »

young woman celebrating a victory while working with mobile phone in the office
Investing

3 Roaring Stocks to Hold for the Next 20 Years

These top TSX stocks are excellent long-term buys, given their multi-year growth potential and solid underlying businesses.

Read more »

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

grow dividends
Investing

Here’s My Top 3 TSX Stocks to Buy Right Now

Even though the TSX has been rising, there are still some good bargains out there. Here are three top compounding…

Read more »

Target. Stand out from the crowd
Investing

Prediction: This Canadian Growth Stock Could Double by 2030

Alimentation Couche-Tard (TSX:ATD) is a top growth stock that could do well over the next six or so years.

Read more »

Businessman holding AI cloud
Tech Stocks

Could Investing $20,000 in Nvidia Make You a Millionaire?

Nvidia stock has made investors millionaires in the last 10 years. Is it too late to invest to become a…

Read more »

Engineers walk through a facility.
Dividend Stocks

1 TSX Stock I Wouldn’t Touch With a 10-Foot Pole

AtkinsRéalis (TSX:ATRL) is one TSX stock I'd never invest in.

Read more »