3 No-Brainer Stocks to Buy Now for Less Than $1,000

These three stocks are excellent additions to your portfolio due to their solid underlying businesses and healthy growth prospects.

| More on:
Various Canadian dollars in gray pants pocket

Image source: Getty Images

Earlier this week, Statistics Canada announced that Canada’s inflation rose 2.8% in February, lower than analysts’ expectation of 3.1% and declining from 2.9% in January. The United States Federal Reserve has indicated about three rate cuts this year, raising investors’ optimism and boosting equity markets. Year to date, the S&P/TSX Composite Index is up 5.2%. Amid growing investors’ confidence, you can buy the following three no-brainer stocks.

Waste Connections

Waste Connections (TSX:WCN) is a solid waste management company operating in the United States and Canada. It is growing its footprint through strategic acquisitions. The company operates in exclusive or secondary markets, thus facing less competition and enjoying higher margins. Supported by these strong financials, the company has returned over 570% in the last 10 years at a CAGR (compound annual growth rate) of 21%.

Meanwhile, the Toronto-based waste management company has expanded its asset base by acquiring 30 energy waste treatment and disposal facilities from Secure Energy Services last month. These acquisitions can contribute $300 million in annual revenue together. The company is investing in Renewable Natural Gas (RNG) and resource recovery facilities and is constructing two recycling facilities that could become operational this year.

Given its growth initiatives, WCN’s management expects revenue and adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) to grow this year by 9.1% and 13.4%, respectively. The management also projects its EBITDA margin to expand 120 basis points compared to 2023. Given its solid underlying businesses and healthy growth prospects, Waste Connections is an excellent buy right now.

Docebo

Docebo (TSX:DCBO) offers a highly customizable enterprise learning management system that helps businesses improve their engagement, productivity, and customer connections. The company is trading 9.5% higher this year amid solid fourth-quarter performance. Its revenue during the quarter increased by 27% to $49.3 million amid an expanded customer base and higher average contract value. The company has added 365 customers compared to its previous year’s quarter, while the average contract value has increased by 11.7%.

Amid top-line growth, its adjusted EBITDA grew 180% to $6.5 million, while its adjusted EBITDA margin expanded from 5.8% to 13.2%. Meanwhile, I expect the uptrend in its financials to continue amid growing demand for e-learning platforms. Its expanding customer base and increasing average revenue per user could support its financial growth. For the first quarter of 2024, Docebo’s management expects its revenue to be between $51 million and $51.3 million, with the midpoint representing a 31.5% growth. The management also expects its adjusted EBITDA margin to improve from 6% in the previous year’s quarter to 12.5-13.5%. Considering all these factors, I believe Docebo would be an excellent buy.

goeasy

goeasy (TSX:GSY) is another top stock I am bullish on due to its solid performance and healthy growth prospects. The company witnessed $705 million in loan originations in the December-ending quarter, a 12% increase from the previous year’s quarter. The company experienced solid performances across multiple product and acquisition channels amid strong demand, driving its loan originations and expanding its loan portfolio. By the end of the quarter, the company’s loan portfolio stood at $3.65 billion, representing a 30% year-over-year growth.

goeasy witnessed stable credit and payment performance during the quarter, leading to a 20 basis point reduction in its net charge-off rate to 8.8%. Also, its allowance for future credit losses declined from 7.37% to 7.28%. Its efficiency ratio, which measures how well the company is able to control its overhead expenses, decreased by 390 basis points to 28.3%. Amid the solid operating performance, its adjusted EPS (earnings per share) increased by 32% to $4.01.

  • We just revealed five stocks as “best buys” this month … join Stock Advisor Canada to find out if Enbridge made the list!

Further, goeasy’s management expects its loan portfolio to expand to $5.8-$6.2 billion by 2026, with the midpoint representing a 64% increase from its 2023 levels. The midpoint of its 2026 revenue guidance represents an annualized growth of 12.9%. Despite its healthy growth prospects, the company trades at an attractive next-12-month price-to-earnings multiple of 9.9 and offers a forward dividend yield of 2.8.

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 Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Docebo. The Motley Fool has a disclosure policy.

More on Investing

alcohol
Tech Stocks

3 Magnificent Stocks That Have Created Many Millionaires, and Will Continue to Make More

Shopify stock is an example of a millionaire-maker stock that is likely to continue to thrive in the long run.

Read more »

Couple relaxing on a beach in front of a sunset
Investing

3 Stocks to Buy Now That Could Help You Retire a Millionaire

These three Canadian stocks are highly reliable and have tremendous long-term growth potential, making them some of the best to…

Read more »

hand using ATM
Dividend Stocks

Should Bank of Nova Scotia or Enbridge Stock Be on Your Buy List Today?

These TSX dividend stocks trade way below their 2022 highs. Is one now undervalued?

Read more »

A data center engineer works on a laptop at a server farm.
Tech Stocks

Why Hut 8 Stock is Up 44% in the Last Week

Hut 8 stock (TSX:HUT) has surged in the last week, and even more year to date. But if you think…

Read more »

Coworkers standing near a wall
Tech Stocks

Why Nvidia Stock Fell 10% Last Week

Nvidia stock (NASDAQ:NVDA) fell by 10% last week after its competitor announced an earnings date, but without preliminary results.

Read more »

A meter measures energy use.
Dividend Stocks

Here’s Why Canadian Utilities Is a No-Brainer Dividend Stock

Canadian Utilities stock is down 23% in the last year. Even if it wasn’t down, it is a dividend stock…

Read more »

edit Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.
Dividend Stocks

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

These essential and valuable value stocks are the perfect addition to any portfolio, especially if you have $5,000 you want…

Read more »

Growing plant shoots on coins
Dividend Stocks

3 Magnificent Ultra-High-Yield Dividend Stocks That Are Screaming Buys in April

High yield stocks like BCE (TSX:BCE) can add a lot of income to your portfolio.

Read more »