Stocks have been climbing in 2024, and Canadian investors don’t want to miss out. Yet, after such a strong recovery, it is hard to know whether to buy or wait for a pullback.
In the short term, that debate matters. However, if you have a considerably long investment horizon (five, 10, or more years), the near-term entry price matters less.
As long as a stock’s valuation is not egregious, the best time to buy a great business is often the present. That is especially true if the stocks you are buying are high-quality companies (strong balance sheet, great management, enduring services/products, etc.) with the potential to keep growing.
If you are looking for stocks that could make you richer in the years ahead, here are three to look at today.
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A Canadian retailer with an impressive record
Alimentation Couche-Tard (TSX: ATD) has done a good job of making investors rich. A $10,000 investment made 20 years ago would be worth $335,000 today. If you reinvested its dividends along the way, it would be worth $430,000.
While the same rate of returns may not be replicated in the future, management is still hoping to double its business over the next four to five years. The company is an excellent quality retailer. Convenience stores and gas stations are not flashy businesses, but Couche-Tard has the scale and operating expertise to earn market-leading results.
Today, it is facing some near-term economic headwinds. However, that also means the stock has pulled back to attractive levels. If you can look through these headwinds, this stock could still deliver good returns in the years ahead.
A financial stock starting to soar
If you are looking for a stock in the early stages of its growth story, Propel Holdings (TSX: PRL) could have considerable upside. It provides small- to medium-sized loans to non-prime consumers. It has its own online lending platform, and it also offers loans through banking partners.
The company recently expanded into Canada. It also started to offer a lending-as-a-service platform to other lending providers. It has been growing earnings per share by +35% per year over the past three years. It continues to have considerable opportunities to expand.
While this stock is up 33% this year, it trades for an attractive 15 times earnings (less than half its growth rate). It also has an attractive 2.85% dividend yield, so you get some income with the story as well.
A boring trucking stock with excellent returns
TFI International (TSX: TFII) is another stock with a great outlook for the future. Like Couche-Tard, it doesn’t really operate in an exciting segment. It operates a mix of trucking and transport businesses across Canada and the United States.
Its stock is up 420% over the past five years and 783% over the past 10 years. The company has grown by a combination of prolific acquisitions and efficient/profitable operating capacity.
Despite such strong performance, TFI stock trades at a significant discount to its peers in the United States. The company is looking for ways to bridge this gap and is making meaningful progress to unlock even more shareholder value. As a result, long-minded shareholders could stand to benefit from an investment this year.
