The market looks as though it might be shifting. The TSX today may not be at all-time highs, but it’s getting there. And with that in mind, it might be the perfect time to start looking at my favourite stocks once more.
Today, we’re going to dig into five. While a few remain in the same category, others are opportunities for investors as the market recovers. So, let’s get right to it.
Real estate
Investors should start considering real estate again as the market recovers, as lower interest rates will lead to lower rates on loans as well. Yet, it may not be clear which area will recover the fastest. That’s why I like the option of asset manager Brookfield Asset Management (TSX: BAM).
BAM stock offers a diversified alternative asset, with a 21% increase in share price in the last year alone. The company invests in every type of real estate, from office buildings and hotels to infrastructure and renewable energy. It also invests in private equity and credit, providing more diversification to mitigate risk for long-term investors.
The management team remains active, seeking to find undervalued prospects and unlocking their potential through operational improvements, strategic investments, and development. Furthermore, it’s a global company that spans everywhere from North America to Asia and in between. And with a strong track record of share growth and earnings performance, it’s a no-brainer stock to buy during this market recovery.
Tech stocks
There are a few tech stocks I would like to focus on as well but for different reasons. The easiest option for investors these days has to be Constellation Software (TSX: CSU), which is basically always a buy. The software acquisition company has proven its worth as an acquisition powerhouse, identifying the most valuable software companies and causing surges in share growth. The company also focuses on holding acquired companies for the long term and recurring revenue for investors. And its track record is nothing short of breathtaking, surging over 1,000% since its initial public offering.
But there are still other popular tech stocks to consider as well. The two I like best right now are Nuvei (TSX: NVEI) and Shopify (TSX: SHOP).
Shopify stock continues to hold a dominant position in e-commerce software and now spans the globe. With a focus back on e-commerce, it is now expanding product offerings, including more marketing tools and the use of artificial intelligence. And with a subscription-based model, that recurring revenue is a reason for investors to buy and hold for the long term.
Nuvei stock, meanwhile, is another strong option for similar reasons. The growth in e-commerce also means growth in payment processing. The company has seen huge global reach and diversification since coming on the market. Analysts love the company’s growth potential and strategic investments as well. And its diverse set of over 200 payment methods provides diversification to mitigate risks.
Metro stock
Finally, I would look to Metro (TSX: MRU) as a strong option as we see the market recover. As inflation levels out, Metro stock will look to be advantageous. And there are some strong growth opportunities for this company, which remains a leading grocery retailer in Canada.
The company has achieved consistent and defensive results, boasting a track record of stable earnings and growing dividends. Plus, it offers essential goods. Costs are high, but when they level out, the company is likely to see even more stable growth. What’s more, it’s been showing expansion in online grocery and click-and-collect services.
While it isn’t the largest in Canada, there is room to grow for Metro stock to close the gap. And that would lead it to be an easy growth story for investors, especially with shares now up 3.5% in the last year alone and a 1.82% dividend yield to consider.
