3 Stock and More: 3 TSX Commodity Titans to Watch in 2024

Commodity stocks are more influenced by the demand cycles of underlying commodities than market movements, which can make them quite attractive in 2024.

The TSX leans heavily towards energy, and it makes sense since Canada is one of the world’s energy giants. However, that’s not the only commodity area where Canada stands out. There are multiple commodity titans in the country that are also some of the largest securities trading on the TSX.

The performance of many of these titans is influenced by forces other than market ups and downs, which can lead to both resilience and contrarian trends. That’s reason enough to keep an eye on at least three of these titans.

Safety helmets and gloves hang from a rack on a mining site.

Source: Getty Images

A gold stock

Canada has its fair share of gold mining stocks, and while they are great contrarian picks in weak markets (when gold spikes thanks to its value as a hedge), they are not healthy long-term picks. However, one giant in Canada’s gold sector can offer you the best of both worlds.

Franco-Nevada (TSX: FNV), one of the largest gold royalty companies in the world, has a far more consistent growth track record compared to other gold companies, and it still has the characteristic resilience against weak markets.

Its growth potential, history, and position as a Dividend Aristocrat are reasons enough to track this stock in any given market, but one of the reasons to do so in 2024 is its current discount. The stock is trading at a hefty 31% discount, which has pushed its yield up to 1.33%. The recovery from this slump can lead to powerful short-term growth, which may continue as a long-term bullish momentum.

A uranium stock

Uranium may seem like a relatively unfamiliar commodity to many Canadians, especially now when the push for renewables is displacing other power-generation sources. But the uranium giant of Canada, i.e., Cameco (TSX: CCO), is still worth looking into.

The primary catalyst behind it is that most governments understand that nuclear power is currently the most practical way to reach their carbon emission goals, as renewable technologies have yet to scale up to meet global demand.

As one of the largest uranium producers in the world and the largest publicly traded uranium company around the globe, Cameco might benefit most from a spike in uranium demand.

It has established itself as a leader and a low-cost uranium producer, which enhances its appeal to a wide range of customers. The year has already been quite healthy for the stock, and it has risen over 15% since the beginning. So, you should keep track of this momentum.

A fertilizer company

Even among commodities, fertilizers stand out from the rest because they tie to one of the most basic needs of humanity: sustenance. And without giants like Nutrien (TSX: NTR), the largest potash and third-largest Nitrogen fertilizer producer in the world, it would be very difficult to sustain the global population.

Nutrien is a compelling pick for a number of reasons besides its leadership position. It has access to world-class raw material resources, a massive network around the globe, and it’s financially healthy.

It’s also a good pick right now because of its massive discount of 52%, which has pushed the yield up to 4.1% and made the valuation quite attractive. What you have to watch out for in 2024 is the beginning of its recovery trajectory.

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

Foolish takeaway

The three blue-chip stocks offer a healthy combination of reliable dividends and long-term growth potential. You can maximize both by keeping track of the stocks and buying just before they start recovering from a dip, so you can lock in a solid yield and ride the bullish momentum from the beginning.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Cameco and Nutrien. The Motley Fool has a disclosure policy.

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