3 Market-Crushing Stocks on My Holiday Shopping List

Waste Connections (TSX:WCN) stock and two other intriguing market-beaters look mighty impressive right now.

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As the holiday season rolls around, investors may wish to take a page out of the playbook of Santa Claus, by making a shopping list with the intention of checking it twice! It’s always smart to have a list of stocks you plan to buy and a price you’d be willing to make the jump.

Indeed, the recent November pop in stocks may have left some of us empty-handed. But fret not because stocks will probably continue to move in mysterious ways from here. Personally, I’d continue to stand by the proven market beaters going into December 2023.

In this piece, we’ll look at a trio of stocks that I think investors ought to keep watch of as they look to continue their winning ways into 2024 and beyond.

Alimentation Couche-Tard

Alimentation Couche-Tard (TSX:ATD) is a convenience retailer that may very well have what it takes to consolidate the industry. The company’s value-driven merger-and-acquisition approach has really paid big dividends over the decades. Moving ahead, the company may be inclined to change its strategy a bit.

Undoubtedly, Couche-Tard’s failed purchase of French grocer Carrefour may be a hint that Couche-Tard is open to pursuing deals in the arena of grocery retail. Of course, valuations have become quite swollen in the grocery space of late.

Regardless, Couche-Tard has so much to gain by adding a grocery giant to its arsenal of convenience stores. Why? A fresh food supply chain would allow Couche-Tard convenience stores to be that much more appealing to those seeking fresh food and quick-stop grocery items on the go.

Whatever Couche-Tard chooses to acquire next, I remain a raging bull on the firm from a long-term perspective. The stock is near a new high. But I wouldn’t dare take profits, as there’s room to run.

Microsoft

Microsoft (NASDAQ:MSFT) is another winner that’s at a new all-time high at the time of writing. The company has really shined, as investors grew hyped over artificial intelligence (AI) innovations. Indeed, Microsoft stock isn’t an AI pure-play, but it’s really been quick to adopt AI across the board. The stock trades at more than 36 times trailing price to earnings, which is lofty, to say the least.

That said, Microsoft owns a stake in OpenAI. And appears to be the way to bet on the success of ChatGPT and its visionary leader Sam Altman, who seems more powerful than OpenAI’s board!

Sure, the company is nearing a $3 trillion valuation. But I think $4-5 trillion could be the next stop. Such a level may come sooner rather than later! If you’re a Canadian seeking AI exposure, it may be time to nibble, even at more than $377 per share.

Waste Connections

Waste Connections (TSX:WCN) is a boring business compared to Microsoft. But the company has a market-beating formula, a wide moat, defensive traits, and a dirt-cheap valuation right here. The stock has flattened a bit over the past year or so. But don’t think that a rollover is on the horizon. A recession won’t make a big dent in sales. Waste is produced in bad times as well, after all!

The real headwind lies in the costs of containing odours from landfills. Indeed, the stench is part of the reason why Wolfe Research downgraded shares recently. Either way, I’m a big fan of the stock from a long-term perspective and think any dips would serve as smart buying opportunities.

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 Joey Frenette has positions in Alimentation Couche-Tard. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Microsoft. The Motley Fool has a disclosure policy.

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