This volatile market has many of us trying as hard as we can to stay out of panic mode. No matter how many times we look back at the history of the stock market, it still feels like we’ve lost everything. That the shares we worked so hard to build up have come crashing down, and there’s no way out.
It’s simply not true.
In fact, you could invest in a Canadian stock right now and see it rise in the next six months back to pre-fall prices. Yes, I realize we could be headed towards a recession. I also realize that these recessions usually last for a total of around 14 months.
The thing is, we’re already near the market bottom and are getting closer to a recovery. With that in mind, it’s time to get optimistic! I know I am, which is why I’ve already chosen the next Canadian stock I’ll be buying.
Get greedy, but stay safe
So, we all know that Warren Buffett quote by now, “Be fearful when others are greedy, and greedy when others are fearful.” I’d say it’s certainly time to be greedy, but not with the growth stocks you may have been focused on during the last few years.
Instead, it’s time to be greedy with safe stocks. Those that have a solid future growth path, and strong fundamentals to consider as well. In this case, the Canadian stock I’m considering is Nutrien (TSX: NTR)(NYSE: NTR).
True, Nutrien stock experienced its own time of volatility earlier this year. But that was due to several factors. Primarily, sanctions against Russia led to a push for potash companies like Nutrien and for new deals to be made. However, it also proved to be a safe space during a market downturn.
Now, everyone needs cash, which has led to shares coming down significantly from 52-week highs. Even so, it’s still up about 19% year-to-date as of this writing. But that growth isn’t why I’m considering Nutrien for my next Canadian stock to buy.
It’s a necessity
Nutrien products have proven to be necessities that the world desperately needs for years to come. The company produces and distributes 27 million tonnes of potash, nitrogen, and phosphate products for agricultural, industrial, and food-based customers worldwide. We will always need food, and crop nutrients are essential to creating food with less arable land available. Nutrien looks like the best Canadian stock to give you exposure to this industry.
Why? Because the company has brought farmers into the 21st century. You can now order nutrients online, which led to a surge in e-commerce growth during the pandemic. Its growth through acquisitions has been substantial as well, combining the fractured industry under one banner.
How much growth are we talking about? Nutiren stock has been on the market since 2018, when it had a market capitalization of about $44.5 billion. Today, that’s ballooned to about $60 billion! All in just four years.
It’s just so cheap
Sure, it would have been nice to buy Nutrien stock before the jump earlier in the year. But I’m not going to focus on the past and will instead focus on the present and the future of this Canadian stock. With such a stable path to growth, I’m viewing any downturn as a buying opportunity. Including the one we’re in right now.
Nutrien stock may be up 19% year-to-date, but it’s down 15% since August 25! That’s more than enough of a drop for me to consider this Canadian stock. Furthermore, the fundamentals make it look cheap. Nutrien currently trades at just 6.51 times earnings, and 1.59 times book value. Plus, it would take just 43.97% of its equity to cover all of its debt.
Finally, you can lock in the company’s dividend yield at 2.47% right now. That’s far higher than what we saw just a few months ago. As Nutrien stock keeps growing, we’re bound to see some increases as well. So, this is one I’ll be buying and holding for life.
