Got $1,000? 2 Best Stocks to Buy Right Now

These two stocks can be excellent investments with their potential to deliver substantial returns through market-beating rallies.

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As another year of stock market investing comes into full swing, it might be time to consider where would be the best place to allocate some of that investment capital you have been preparing. Whether it was that holiday bonus you got or you saved up a little money to put to work in the market, you must make sure you spend it wisely.

With plenty of volatility riddling the stock market throughout 2023, deciding what to invest in right now might seem a little confusing. Granted, the interest rate cuts expected to happen sometime this year should make for good developments. Still, you cannot count on a guaranteed bull market that will send share prices soaring across the board.

To make the most of your investment capital, identifying stocks with solid potential to deliver exceptional returns is essential. To this end, we will look at two of the best TSX stocks you can consider adding to your holdings at the start of the year.

Constellations Software

Constellation Software (TSX:CSU) benefitted from the rally in tech stocks in 2023, regaining its all-time highs in the process.

Constellation Software stock is a $77.57 billion market capitalization Canadian tech company that develops and customizes software for public- and private-sector markets across various industries. Unlike typical tech stocks, Constellation Software also pays its shareholders quarterly distributions.

Constellation Software did not suffer as much as the hotter names in the tech sector during the industry-wide downturn.

Having been around much longer, the company operates with a different business model. It specializes in acquiring, managing, and building vertical-specific businesses. The company has enjoyed significant success over the years due to its focus on acquiring businesses that already possess the potential to drive growth.

Despite its massive size, Constellation Software is expected to grow its revenue from $9 billion in 2022 to $13.2 billion in 2024. Adding its shares to your holdings can help you capture some of those capital gains to grow your wealth this year and beyond.

Jamieson Wellness

Jamieson Wellness (TSX:JWEL) is another company that has been around for a while. Established about a century ago, the $1.33 billion market capitalization company engages in manufacturing, distributing, and marketing branded natural health products.

These include vitamins, minerals, and supplements, with several brand names under its belt. The company generates most of its revenue from the domestic market but continues to invest heavily in expanding its presence in the U.S. and China.

Jamieson Wellness has been investing in different regions and launching new and innovative products to cater to the evolving needs of its consumers. The company’s strategy looks likely to pay off, with analysts anticipating it to reach $729 million in sales by the end of 2024.

As it continues to widen its cash flows and enjoy consistent profit margins, it can be an excellent investment to hold for the long run.

  • We just revealed five stocks as “best buys” this month … join Stock Advisor Canada to find out if Constellation Software made the list!

Foolish takeaway

As uncertainty continues looming for stock market investors in 2024, it is important to understand where your capital might have the best chance to deliver returns.

Stocks with solid underlying businesses that can weather market volatility and grow shareholder value can be much better holdings to consider. To this end, Constellation Software stock and Jamieson Wellness stock can be good holdings for your self-directed portfolio.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

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