4 Canadian Stocks Set to Soar in 2024

The Canadian stock market is well on its way to new all-time highs. Here are four companies to add to your watch list today.

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Don’t look now, but the Canadian stock is finally showing signs of life. The S&P/TSX Composite Index began a steady climb upward last October, returning close to 15% throughout this run so far. That puts the index only a couple of percent below all-time highs, which were last set in early 2022.

With the market on the rise, I’ve put together a list of four companies that long-term investors may want to consider adding to their watch lists today. The basket of stocks can provide an investment portfolio with a balanced mix of growth, passive income, and plenty of diversification. 

Constellation Software

At a price tag that’s nearing $4,000 a share, Constellation Software (TSX:CSU) is one of the highest-priced stocks on the TSX. 

The tech stock is also in a league of its own when it comes to market-beating returns. There are not many Canadian stocks that can compete with Constellation Software’s returns over the past two decades.

Growth has slowed in recent years, as the company is now valued at close to $80 billion. Still, shares are up a market-crushing 225% over the past five years.

This dependable growth stock is worth every penny of its steep price tag.

Shopify

There’s still time to load up on one of the country’s top growth stocks at a discounted price. Even with Shopify’s (TSX:SHOP) 70% jump over the past 12 months, shares are still trading more than 50% below all-time highs.

It’s been an incredibly volatile past four years for Shopify. Shares are finally back above pre-pandemic levels, but it has taken time and patience to get there. With the recent surge, the growth stock is now up close to 300% over the past five years.

If you can handle the volatility, don’t miss your chance to load up on Shopify while these discounted prices are still here.

Northland Power

Speaking of discounted stocks, the renewable energy sector is an excellent place for Canadian investors to bargain hunting right now. Both passive income and value investors may find a stock or two that they’re interested in.

Like many others in the sector, Northland Power (TSX:NPI) has been on the decline since early 2021. The stock has sold off more than 50% since then and is now trading at a loss over the past five years. 

On the bright side, this is a proven market beater that has a strong market position in a growing industry. In addition, the dividend yield has shot up with the drop in stock price and is now yielding above 5%.

Investors bullish on the rise of renewable energy should not be on the sidelines right now. There are too many good deals to pass up.

Air Canada

The last pick on my list is another beaten-down company. Shares of Canada’s largest airline, Air Canada (TSX:AC), continue to trade far below pre-pandemic prices.

What interests me about Air Canada is the airline’s track record of delivering market-beating returns in the past, which is not exactly common in the airline space. Airline stocks are typically known for cyclicality, as opposed to outperforming the market’s returns.

Air Canada has proven in the past that it’s been able to rebound from significant pullbacks and I don’t see why it’s not up for the task once more. 

With shares down more than 60% below all-time highs, there is a serious value play here for patient investors.

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 Nicholas Dobroruka has positions in Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

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