Buy the Dip: 2 Stocks to Buy Today for a Big Profit in 5 Years

Here are two of the best Canadian stocks you can invest in today and hold at least for the next five years to expect solid returns on investments.

| More on:

Buying stocks when their prices are low can be a smart move, especially for long-term investors looking to multiply their hard-earned savings over time. As macroeconomic uncertainties have kept the stock market highly volatile of late, this market volatility has also made some fundamentally strong Canadian stocks look cheap. By adding these quality stocks to your portfolio now, you can not only leverage the ongoing market downturn to your advantage but also increase your chances of getting significant returns on investments in the long run.

In this article, I’ll highlight two of the best Canadian stocks you can buy today to expect big profits if you hold them for at least the next five years.

Celestica stock

Celestica (TSX:CLS) is the first Canadian stock you can consider buying right now. If you don’t know it already, it’s a Toronto-headquartered company with expertise in making hardware platforms and other supply chain solutions for companies globally. CLS currently has a market cap of $4.4 billion, as its stock trades at $37.09 per share after rocketing by 143% in 2023 so far.

Geographically, Celestica’s revenue is well diversified. Based on its 2022 financial figures, the company made slightly more than 65% of its revenue from Thailand, while Malaysia and China also accounted for a significant portion of its total sales.

The recent solid gains in CLS stock could be attributed to the consistency in its financial growth trends. Despite the ongoing macroeconomic challenges, Celestica’s revenue grew positively by about 12% year over year in the first three quarters of 2023 combined to US$5.8 billion. During the same nine months, its adjusted earnings also jumped around 24% from a year ago to US$1.67 per share.

Going forward, you can expect Celestica’s growth trends to improve further with the help of strong secular tailwinds and new program wins. And these are also the key reasons why the company recently raised its full-year 2024 outlook. Considering these positive factors, CLS stock looks attractive to buy today for the long term, despite its significant gains in the last year.

Dye & Durham stock

Dye & Durham (TSX:DND) is another top Canadian stock I find undervalued today based on its long-term financial growth prospects. The company primarily focuses on providing technological solutions to improve the efficiency and productivity of legal and business professionals. DND stock has a market cap of around $760 million as it trades at $13.81 per share after declining by 16% year to date.

Although the challenging macroeconomic environment has badly hurt the real estate industry, leading to a weakness in Dye & Durham’s financial growth trends, the demand for its technological solutions remains stable.

I expect its financial growth trends to witness massive improvements in the long run as DND’s management has recently increased its focus on debt reduction and balance sheet flexibility by announcing the strategic review of its non-core assets. This announcement could also be the primary reason why Dye & Durham’s share prices rallied by more than 70% in November 2023 alone.

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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Stocks for Beginners

four people hold happy emoji masks
Stocks for Beginners

The Smartest Growth Stock to Buy With $5,000 Right Now

This top growth stock has been climbing not just this year, but for years on end! And it's not about…

Read more »

open vault at bank
Stocks for Beginners

Are TD Stock and BNS Stock Smart Buys for Canadian Investors?

TD stock and Scotiabank both delivered earnings this week, so let's look at whether now is the time to buy,…

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

Billionaires Are Selling Lululemon Stock and Picking Up This TSX Stock

Here's why some are parting ways with their athleisure darlings and choosing this dividend darling instead.

Read more »

Investor reading the newspaper
Stocks for Beginners

3 Growth Stocks to Buy and Hold Forever

The best growth stocks are those you can buy and hold for years and maybe even decades. Let these great…

Read more »

hand stacking money coins
Dividend Stocks

Top Canadian Stocks to Buy Immediately With Just $1,000

Two standout stocks that can transform a modest sum into a hefty gain over time through the power of compounding.

Read more »

four people hold happy emoji masks
Stocks for Beginners

3 of the Best Canadian Stocks Investors Can Buy Right Now

If you want the best of the best, don't swim through a sea of downers. Get in on these three…

Read more »

protect, safe, trust
Stocks for Beginners

Opinion: This Is the Safest TSX Stock for 2025 and Beyond

The inherent defensive nature of Dollarama’s business model and its expansion plans make it one of the safest stocks for…

Read more »

up arrow on wooden blocks
Stocks for Beginners

3 High-Growth Canadian Stocks for Investors to Buy Now

These high-growth Canadian stocks have demonstrated resilience and robust performance, even amid market fluctuations.

Read more »