While it has already been a solid year for the TSX stocks as whole, there are still opportunities out there. In fact, many studies have found that the best time to invest is when you have the cash.
Timing the market can be fraught with errors (and you can be waiting for a pullback for a long time). If you invest with an extended time horizon, the best thing you can do is find good stocks, deploy the capital, and hold on for the ride.
If you are looking for some good long-term stocks to hold for the long run, here are three to think about today.
A beaten up retail stock
Alimentation Couche-Tard (TSX: ATD) has delivered a strong mid-teens return over the past five years. It operates a huge network of convenience stores and gas stations around the world.
Recently, the company was hit by weaker than normal consumption patterns (particularly in the United States). In its recent quarter, earnings came in weaker than expected. The stock pulled back 7% on the results.
Yet, this could create a good opportunity to add to the stock. Couche-Tard has a great record of acquiring convenience store businesses and making them cash flow machines.
It just acquired a large portfolio in Europe. That will start contributing to its growth in 2024 and likely beyond. Likewise, management noted it could see an uptick in acquisition activity this year. For a long-term buy, the recent pullback could be a sweet entry point.
A niche sector for consolidation
Boyd Group (TSX: BYD) is another high quality stock that recently had a pullback. It is the only publicly traded company in North America that is focused on consolidating the collision and glass automobile repair industry.
The company has had an exceptional record of growth. Its stock is up 106% over the past five years and 720% over the past decade. The repair shop industry is very fragmented.
Thus, Boyd has considerable consolidation opportunities. With scale and an efficient operating platform, it can capture more profitable business from the large insurers.
Boyd recently missed quarterly expectations and the stock pulled back. The stock is trading at a reasonable valuation today. If you want a well-managed serial acquirer with a large market to continue growing into, Boyd could be a good bet today.
A top real estate stock
Another stock that could be a nice buy today is Colliers International Group (TSX: CIGI). Colliers operates a substantial commercial real estate brokerage business around the world. This segment has been challenged by low interest rates and a divergence between buyer and seller expectations.
This dynamic isn’t expected to last forever. At some point real estate will need to move. In the meantime, Colliers has significantly diversified its business into recurring service segments (like property management, project management, consulting, engineering, and asset management). These have supported stable results over the past couple of years.
The company recently raised some capital. It is in a strong position to make acquisitions in 2024. Management noted that it was looking to expand its base of recurring services. Colliers is not an overly expensive stock for one that has compounded by a high teens rate for a few decades.
