Got $1,000? 2 Best Stocks to Buy Right Now

CP Rail (TSX:CP) and another top Canadian stock would make great buys with one’s first $1,000.

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You don’t need a massive sum to get started investing. Undoubtedly, many new investors may be putting off learning about investments because they think they need at least X amount. Given fees on a wide range of passive investment products have come down in recent years (think the management expense ratios) along with trading commissions on individual stocks (they could be next to negligible depending on your brokerage), I’d argue that $1,000 represents a good starting ground.

Of course, you may not be able to build game-changing wealth with such a relatively small amount. That said, a journey of a thousand miles always tends to begin with just one single step. And with the first $1,000 put to work, one will be able to begin to learning process sooner so that they’ll be ready once they have a greater sum to put to work in the broader stock markets.

In this piece, we’ll look at two intriguing stocks that could make for great first buys for a new investor with their first $1,000 or so. Though the initial investment may not be much, one can add to the position gradually over time. The next thing you know, that initial investment could be the starting ground for building a full-sized position over the course of many quarters.

Without further ado, here are two intriguing stocks I’d be inclined to check out right now.

Alimentation Couche-Tard

First, we have a convenience retailer that’s outpaced the TSX Index for quite some time. Alimentation Couche-Tard (TSX:ATD) may be a low-tech play, but it’s been growing at a decent pace, driven in part by smart acquisitions and efforts to give consumers what they want.

Indeed, gas stations and convenience stores are more about saving customers time than anything else. As the technological age hits, expect Couche-Tard to innovate, whether via self-ordering kiosks (popular among many other convenience store chains in America) or other high-tech means to remove friction from the buying process.

The biggest game-changer, though, could lie in increasing its fresh food exposure and adding more hot, store-made restaurant-quality food. I see many pathways for growth for Couche-Tard, and as it continues to grow, I’d look to shares as a great way to put your first $1,000 to work.

There’s nothing wrong with building a small partial position in a stock over the course of many months. Should a pullback be in the cards, you’ll be able to get potentially better prices for a firm whose long-term fundamentals are unlikely to be changed drastically as a result of technological advancements.

CP Rail

CP Rail (TSX:CP) is another great company for beginner investors looking to invest with a somewhat limited amount. The railway play has been moving higher of late, recently eclipsing the $120 mark for the very first time. Though the recent spike in shares could lead to an equally sharp pullback over the near term, I’d not be afraid to look for an entry point in the wide-moat rail play.

Undoubtedly, shares are pricier than the average rail play at 28.9 times trailing price to earnings. Still, the network is unmatched, even compared to its top Canadian rail rival, which CP recently surpassed in terms of market cap. All considered, CP is a wonderful starter stock for smaller 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 Joey Frenette has positions in Alimentation Couche-Tard. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Canadian Pacific Kansas City. The Motley Fool has a disclosure policy.

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