Stocks for Beginners: 3 Top TSX Stocks to Buy Today

Where should you invest when global growth looks uncertain?

| More on:
Gold medal

Image source: Getty Images.

The Russia-Ukraine war fueled the volatility in the markets and drove a rally in commodities. Now, the impact seems to be getting more striking and concerning.

The International Monetary Fund has recently revised its global growth outlook for 2022 and 2023. It now expects the global economy to grow 3.6% this year, marking a 0.8% decrease from its earlier projection.

While the outlook might hamper growth stocks, some TSX stocks could still stand firm in the current situation. They could create robust wealth in the long term. Here are three of them.

Birchcliff Energy

After a blockbuster 2021, Birchcliff Energy (TSX:BIR) is set for another big hit in 2022. Canada’s natural gas producer stock has rallied 65% this year and 260% since last year. Interestingly, it seems just getting started, considering current natural gas prices and its balance sheet strength.

Natural gas has gained 190% in the last 12 months and is currently trading at almost 14-year highs. It has ticked higher recently amid the supply squeeze and colder weather.

Birchcliff Energy reported free cash flows of $309 million last year. In the earlier year, its capital investments way exceeded cash flow from operations.

Notably, the company expects cumulative free cash flows of $1.6 billion through 2026. Moreover, it forecasts to turn debt-free next year with such a steep cash flow. This leaves significant room for dividend growth.

Birchcliff plans to release its Q1 2022 earnings on May 11. The stock could trade higher on solid quarterly numbers and probable higher dividends.

Air Canada

After the pandemic, high jet fuel prices could hinder the growth plans of Air Canada (TSX:AC). Jet fuel forms the major cost component of an airline. So, even if travel resumes post-pandemic, airline companies might take time to turn profitable.

Air Canada saw superior revenue growth in the last quarter that managed to lower its cash burn. Its strong balance sheet fueled its recovery and has been the highlight among peers throughout the pandemic.

AC stock has gained 10% so far in 2022. Its earnings next week would shape its stock in the short to medium term. However, its operational efficiency and leading market share could drive its recovery in the long term.

AC stock might not be a super wealth creator in weeks or months. However, its upturn could take time. Investors with a longer time horizon should consider AC stock to play its post-pandemic rally.


Canada’s top utility stock Fortis (TSX:FTS)(NYSE:FTS) is my third pick for today. It is a relatively low-risk stock among these three. Utilities are perceived as safe havens because of their slow stock movements and stable dividends.

Fortis currently yields 3.4% and has increased dividends for the last 48 consecutive years. Utilities like Fortis have fair visibility of their earnings, and that’s why they are more capable of distributing their profits among shareholders.

Fortis stock has gained 15% in the last 12 months. The stock saw a significant upward move after Russia invaded Ukraine in February. It could continue to move higher, slowly but steadily, amid the shaky global growth outlook.

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 recommends FORTIS INC. Fool contributor Vineet Kulkarni has no position in any of the stocks mentioned.

More on Stocks for Beginners

Stocks for Beginners

Starting an Investment Portfolio? Buy These 3 Stocks!

Interested in getting a start in the stock market? Buy these three stocks today!

Read more »

TFSA and coins
Stocks for Beginners

TFSA Investors: 3 Stocks You Should Buy Today

Are you looking for stocks to add to your TFSA? Here are three top stocks to buy today!

Read more »

Stocks for Beginners

2 High-Growth Stocks to Buy Hand Over Fist This Week

You might not get a better bargain on these two Canadian high-growth stocks if you miss them buying right now.

Read more »

ETF chart stocks
Stocks for Beginners

2 Interesting ETFs to Buy for Passive Investing

ETFs are a simple and low-cost way for investors to invest passively for the long haul. Currently, QQQ and XRE…

Read more »

Stocks for Beginners

Canadians: 3 Ways to Help You Fight High Inflation

No one likes high inflation when it makes a regular basket of goods way more expensive than it was not…

Read more »

protect, safe, trust
Stocks for Beginners

2 Safe TSX Stocks to Buy and Hold for Decades

Newbie investors with low-risk tolerance can buy two safe TSX stocks anytime and keep them for decades.

Read more »

Stocks for Beginners

Where to Find Good News in a Market Pullback

News in a market pullback is often negative. Fortunately, it’s not all bad. There are some great buys right now.

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Stocks for Beginners

Got $3,000? 3 Top TSX Stocks to Buy Today

Looking for growth along with dividends? Here are three top TSX stocks.

Read more »