Investors not wanting to sink all their cash into the stock market would certainly be warranted not to. The market continues to be a volatile place, even as shares continue to climb back towards all-time highs on the TSX today.
That being said, some of the best stocks out there trade for significant value. Therefore, if you have just $1,000 to spare, then these are the best stocks to consider right now.
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Héroux-Devtek
Héroux-Devtek (TSX: HRX) is a strong stock to consider coming off even strong earnings. The landing gear manufacturer saw shares shoot up after the company reported earnings that saw sales climb 16.1% during the quarter to $163.5 million.
The drive in sales came as inflation raised the price of many of its parts deliveries. This included the Boeing 777 and Embraer Praetor commercial aircraft as well as growth through its defensive businesses. Now, HRX stock looks well positioned for even more growth in the future. In fact, its margins should exceed historic levels as efficiency improves, pricing climbs, and it sees increased throughput.
It’s clear then why analysts have pegged HRX stock as a “buy,” raising their price targets as well after the strong quarter. Shares of HRX stock are now up 39% in the last year as of writing. That’s likely to climb even higher, as the company anticipates even more margin increases in the fourth quarter.
Brookfield Asset Management
Parent company Brookfield Asset Management (TSX: BAM) also saw a strong quarter that had many interested in the future of the company. BAM stock had a strong 2023, and this has set the stage for an even stronger 2024 for investors to consider.
BAM stock reported most recently that its fee-related earnings per share (EPS) were up 1% year over year to US$0.36. While that may not seem like a lot, it still beat estimates that pegged it coming in lower. However, it managed to see an increase thanks to lower expenses and higher transaction and advisory fees.
Now, after a difficult but stable 2023, BAM stock and investors are looking ahead. In 2024, revenue tailwinds should come into play from a lot of fundraising throughout 2023. Furthermore, the stock was able to moderate its operational expenses, and this led to an increase in its free cash flow (FCF) margin. So, not only should investors continue to see a higher share price but also a higher compound annual growth rate in EPS. Analysts peg it at 17% compound annual growth rate over the next five years! And with a 3.79% dividend yield and shares up 16% in the last year, it still looks like a deal.
Finning International
Finally, Finning International (TSX: FTT) is also a top choice to make with just $1,000 on hand. The heavy equipment dealer could see a banger 2024, despite seeing shares drop 9.2% after its fourth-quarter 2023 results.
The short-term disappointment was caused by revenue falling below expectations. However, analysts are still bullish on Finning stock, given the company’s long-term projections. The company still offers higher EPS/FCF generation, even compared to historical highs. And now, peak earnings are projected to reach $4. And that could mean right now, the stock is a steal, trading at just 10.78 times earnings as of writing.
There are multiple expansion opportunities for Finning stock as well, especially as building construction increases once more. So, while short-term challenges might seem a bit rough, the stock looks like a strong one to consider for 2024 and beyond.
