The Best Stocks to Buy With $1,000 Right Now

These three are the best stocks to consider after solid earnings but still offer huge value on the TSX today. Grab them while they’re on sale!

| More on:
dividends grow over time

Source: Getty Images

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.

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.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Asset Management. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

3 of the Best Canadian Stocks I’d Buy and Hold Forever

These three stocks have always done well for me and should continue well into the future -- especially with dividends…

Read more »

edit Taxes CRA
Dividend Stocks

Tax Refund: How to Get More Money Back This Year

Resourceful taxpayers will try to find out available tax credits and tax refunds to get their money back in this…

Read more »

protect, safe, trust
Dividend Stocks

How to Build a Bulletproof Monthly Passive Income Portfolio With Just $10,000

The market turned bearish on dividend stocks. Now is the time to buy them at their dip and bulletproof your…

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

1 Hidden Catalyst That Could Ignite BCE Stock

BCE (TSX:BCE) stock has been cutting and cutting some more, but it needs to add to its already strong arsenal…

Read more »

Retirement
Dividend Stocks

Got $5,000? Buy and Hold These 3 Value Stocks for Years

Given their healthy growth prospects and attractive valuations, these three stocks offer attractive buying opportunities.

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

Should You Take CPP at 65 or 70? Here’s What Research Says

If you take CPP at age 70, you may supplement your income with dividend stocks like Brookfield Asset Management (TSX:BAM)…

Read more »

Increasing yield
Dividend Stocks

Boost Your Passive Income With These 3 High-Yielding Dividend Stocks

These three high-yielding dividend stocks could boost your passive income.

Read more »

calculate and analyze stock
Dividend Stocks

TFSA Investors: 2 TSX Dividend Stocks to Buy Today

These two dividend stocks have increased their dividends annually for more than two decades.

Read more »