More than a million investors in Canada and the U.K. use Wealthsimple to invest in the stock market. A robo-advisory platform, Wealthsimple has gained significant traction due to its easy-to-use interface, making it attractive to both passive and active investors.
Wealthsimple Invest can help you automate the investing process by providing users with investment options based on their financial goals and risk tolerance levels. Alternatively, you can leverage your expertise to buy and hold individual stocks and aim to generate outsized returns over time.
The platform can also be used to hold Canadian registered accounts such as the Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA), and Registered Education Savings Plan (RESP).
Here are three top TSX stocks Wealthsimple investors can consider buying now.
ATS Corporation stock
ATS (TSX: ATS) provides enterprise-facing automation solutions globally. Additionally, it plans, designs, builds, and services automated manufacturing and assembly systems, which include automated products and test solutions.
Valued at $6 billion by market cap, ATS stock has returned 360% to shareholders in the last 10 years. Its revenue grew by 23.4% to $753.6 million in fiscal Q1 of 2024 (ended in June), while adjusted earnings were up over 20% at $0.69 per share. ATS reported an order backlog of $2 billion, an increase of 30% year over year.
Priced at 23 times forward earnings, ATS stock is forecast to expand earnings by 13% in 2023. Despite its stellar gains in the past decade, it trades at a discount of 14% to consensus price target estimates.
Bausch + Lomb stock
Among the most popular manufacturers of eye health products in the world, Bausch + Lomb (TSX: BLCO) is valued at a market cap of $8.6 billion. The company went public in May 2022, and the stock currently trades 12% below all-time highs.
Bausch + Lomb offers customers OTC (over-the-counter) supplements, eye care products, contact lenses, lens care, and other products.
While analysts expect sales to rise by 6.6% to US$5.4 billion in 2023, the top line is forecast to accelerate further by 9.9% to US$6 billion in 2024. Similarly, adjusted earnings are forecast to improve from US$1.01 per share in 2023 to US$1.36 per share in 2024.
Priced at 10 times forward earnings, BLCO stock trades at a discount of 55% to consensus price target estimates.
Hydro One stock
The final TSX stock on my list is Hydro One (TSX: H). An electricity transmission and distribution company, Hydro One also offers shareholders a tasty dividend yield of 3.3%. Hydro One was listed on the TSX in 2015 and has since returned 120% to shareholders after adjusting for dividends.
Part of a recession-resistant sector, Hydro One is a defensive pick as it generates cash flows across market cycles. Despite an inflationary environment, Hydro One is forecast to increase earnings from $1.75 per share in 2022 to $1.89 per share in 2024.
The company’s capital investments in Q2 totalled $649 million, while in-service additions stood at $413 million, which should drive future cash flow higher.
Priced at 20 times forward earnings, the TSX stock trades at a discount of 10% to price target estimates.
