Whether the market is surging or falling, some stocks always stand out as clear winners in the long run. These stocks typically belong to companies with solid fundamentals, a long track record of stable growth, and the ability to adapt to changing economic conditions. As economic uncertainties continue to keep the Canadian stock market volatile in 2024, it could be the right time for investors to consider adding such quality stocks to their portfolios.
In this article, I’ll highlight three winning stocks that can be great additions to your long-term portfolio, regardless of short-term market ups and downs.
Canadian Pacific stock
First on my list of winning Canadian stocks is Canadian Pacific Kansas City (TSX: CP). This Calgary-headquartered North American railway giant currently has a market cap of $98.5 billion.
Even as macroeconomic and global pandemic-related challenges have made most stocks volatile in recent years, CP stock has been yielding positive returns for eight consecutive years. After having jumped nearly 197% in the previous eight years, it has risen 1.2% in January 2024 to currently trade at $106.14 per share.
In the first three quarters of 2023, Canadian Pacific’s total revenue rose 39.3% YoY (year over year) to $8.8 billion, while its adjusted earnings during these nine months remained largely unchanged at $0.55 per share. Besides the consistent financial growth, its robust balance sheet and well-established business model make it a really attractive Canadian stock to hold for the long term.
Brookfield stock
In times of market uncertainty, the Canadian financials sector is often seen as a safe haven, and Brookfield (TSX: BN) stands out in this sector. Besides its private equity investment business, this Toronto-headquartered firm also focuses on managing a large asset base in various sectors, including infrastructure, real estate, and energy. It currently has a market cap of $90.4 billion as its stock trades at $55.12 per share after rallying around 34% in the last three months.
In the 12 months ended in September 2023, Brookfield’s distributable earnings stood strong at US$5.0 billion, with a notable increase in its fee-related earnings and strong investment performance.
As the private equity giant maintains a focus on adding new quality assets to its well-diverse portfolio, its earnings growth is likely to remain strong in the long run, making BN one of the most stable Canadian stocks to own for years to come.
Couche-Tard stock
Alimentation Couche-Tard (TSX: ATD) could be another top Canadian stock pick to consider in 2024. This Laval-based company operates a large chain of convenience stores across 29 countries and territories. It currently has a market cap of $77.2 billion as its stock trades at $80.59 per share after rallying by around 29% in the last year.
In the first half (ended in October 2023) of its fiscal year 2024, Couche-Tard’s adjusted earnings grew positively by 18.4% YoY to $1.22 per share, despite declines in its total sales. Its positive earnings growth could mainly be attributed to an increase in its merchandise and service gross margin, effective cost management, and contributions from acquisitions. Moreover, Couche-Tard’s expansion plan with a continued focus on strategic acquisitions brightens its long-term growth outlook.
