Ready to Invest With $5,000? 3 Stocks for December 2023

These three stocks on the TSX today have been upgraded to outperformers by analysts, making them solid buys this December.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published December 12, 2023 3:45 pm EST

This month could be one of the most lucrative that investors have seen in Canada for quite some time. The TSX today looks like it could be finally on the recovery. That means we could enter 2024 with some positive news, and why today is a great time to use cash that perhaps you’ve been saving for this moment.

So if you’re ready to find some stocks to invest in during December, then here are the three I would consider today.

CAPREIT

Canadian Apartment Properties REIT (TSX: CAR.UN) is a great place to start if looking for growth and income. It’s one of the few stocks on the TSX today doing quite well even in this high interest rate environment. In fact, analysts are now firmly on board the future of the stock.

Improving market fundamentals have led several analysts to see momentum from the REIT in the near future. The real estate investment trust (REIT) remains the “largest and most liquid of the Canadian apartment peers” says one analyst. And with many switching to renting over buying, there is a sustainable reason to pick up the stock today.

So with shares up 17% in the last year, there could be more to come. Yet it still trades at just 0.9 times book value. Add in a dividend yield of 2.87%, and you have plenty of reason to pick up this stock on the TSX today.

Aritzia

Aritzia (TSX: ATZ) is another stock on the TSX today that has more future growth ahead. However, in the case of Aritzia stock, this growth potential arises after the retailer surged in share price only to fall by more than half. So investors will need some convincing, though analysts believe it’s all right there in black and white.

Aritzia stock posted strong growth since coming on the market in 2016, and that should continue through the next four years. The company expects a 12% to 15% compound annual growth rate (CAGR) to reach up to $3.8 billion in sales by 2027. While that’s aggressive, analysts believe it’s doable.

Yet right now, shares remain valuable according to analysts given its historical valuation and the future growth opportunities. It must be said, however, that there is a bit more risk in the short term as the TSX today recovers. So with shares trading at 1.3 times sales, and down 50% in the last year, it’s a great time to get in on this stock if you’re a long-term holder.

Pan American Silver

Then there are the items that we will always need, and that includes silver. No, not for jewelry during the holiday season. Instead, we’re looking at silver for its functions. Which is why Pan American Silver (TSX: PAAS) seems like such a great option as well this December on the TSX today.

Its strategic portfolio and successful mergers and acquisitions make it a strong option for current and future investment. The company continues to focus on Latin American exposure to silver and other precious metals, building on a strong track record. While silver remains difficult to find, Pan American stock has managed to become a top producer of the mineral. And should continue to be so for the foreseeable future.

So with shares trading at 2.1 times sales and 1.1 times book value, and down 9.5% in the last year, it looks like a steal. Especially when you add in a dividend yield at 2.68% as of writing.