Identifying shares of companies with a consistent track record of strong financial performance will help investors create substantial wealth in the long run. Thankfully, TSX has several such fundamentally strong companies with the potential to consistently generate solid financial results, which makes them a no-brainer stock to invest in.
With this backdrop, let’s look at three no-brainer Canadian stocks to buy now for less than $100.
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Alimentation Couche-Tard
With its low-risk and high-growth business, Alimentation Couche-Tard (TSX:ATD) is a no-brainer stock to buy for less than $100. It operates convenience stores and offers a compelling combination of stability, income, and growth. It’s worth noting that Alimentation Couche-Tard’s sales and earnings per share (EPS) have increased at a compound annual growth rate (CAGR) of 7.3% and 18.8%, respectively, in the past decade.
Thanks to its solid financials, Couche-Tard stock has grown at a CAGR of nearly 19% in the last 10 years, outperforming the broader market. Furthermore, the company enhanced its shareholders’ value via consistent dividend hikes. Notably, its dividend increased at a CAGR of 26.6% over the past decade.
Looking ahead, Couche-Tard’s extensive store base, focus on entering new categories, expansion of private label products, and operational efficiency will likely drive its top and bottom lines. Furthermore, the company’s strategic acquisitions are expected to accelerate its growth rate and support its share price.
Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) is another no-brainer stock to earn a steady income and generate solid capital gains. Shares of this oil and gas company have gained over 217% in the past five years, reflecting an impressive CAGR of about 25.6%. The appreciation in its value reflects the company’s ability to consistently generate strong financials and focus on returning cash to its shareholders.
Canadian Natural Resources’s diversified asset portfolio of short-, mid-, and long-cycle projects provides flexibility. Additionally, its portfolio includes long-life, low-decline assets, which ensure sustainable production output and generate solid free cash flow even amidst a low-price environment. Further, its low maintenance capital requirements drive significant free cash flow growth.
Notably, Canadian Natural Resources has increased its dividend for 24 consecutive years. Moreover, its dividend increased at a CAGR of 21%. Looking ahead, its high-value reserves, diversified asset base, growing cash flows, and efficient operations will likely drive its share price and dividend payouts.
WELL Health
WELL Health Technologies (TSX:WELL) is the final stock on this list. Despite economic reopening, this digital healthcare company has been generating strong revenue and adjusted EBITDA (earnings before interest, tax, depreciation, and amortization). This shows the resiliency of its business model. What stands out is that the company is growing rapidly while its stock is trading at a compelling valuation.
Notably, WELL Health stock is trading at the next 12-month enterprise value/sales multiple of 1.5, which is near the all-time low and much lower than its historical average.
WELL Health will likely benefit from the continued growth in its omnichannel patient visits. Further, the company is pursuing profitable growth strategies to drive its margins and cash flows. Besides organic growth, the company is poised to gain from its accretive acquisitions. Also, its investments in artificial intelligence technology will enable it to expand its product base, supporting long-term growth.
