2 No-Brainer Stocks to Buy With $100

These no-brainer stocks have solid growth prospects and the potential to generate substantial capital gains in the long term.

| More on:
Man data analyze

Image source: Getty Images

Investing in stocks can help you create wealth in the long term. Moreover, one can start investing in stocks even with low capital. What’s important is to consistently invest in shares of fundamentally strong companies and stay invested for a long period. 

So, if you plan to invest in stocks with $100, here are two no-brainer Canadian stocks to consider. 

Stock #1

The TSX has several high-quality stocks, one of which is Aritzia (TSX:ATZ). This luxury clothing company has a stellar track record of generating impressive sales and earnings, which has bolstered its share price. 

For instance, Aritzia’s revenues have grown at a compound annual growth rate (CAGR) of 19% in the past five years. This was supported by solid e-commerce sales, which increased at a CAGR of 37% during the same period. At the same time, its adjusted net income grew at a CAGR of 13%. 

Despite tough year-over-year comparisons, Aritzia’s sales grew at a healthy pace in Q4 (fourth quarter) of fiscal 2024. Its revenue increased by 7% in Q4, on top of the 44% growth registered in the prior-year period. This shows the company’s ability to attract shoppers even amid macro uncertainty. 

Aritzia’s management expects its top line to increase at a CAGR of 15 to 17% through 2027, which implies that its growth rate will likely accelerate from current levels. Its focus on introducing new styles and applying data analytics and technology will likely optimize its product portfolio and accelerate its growth rate. Moreover, the opening of new boutiques augurs well for growth. Aritzia aims to launch 8 to 10 new boutiques annually through FY27. 

The company plans to further benefit from enhancing its online customer experience by expanding omnichannel offerings and broadening its product range.

Overall, Aritzia’s focus on expanding its geographical footprint through new boutique openings and omnichannel offerings will likely boost its top line. All considered, higher sales, an improved inventory position, and operational efficiencies will drive its bottom line and bolster its share price.  

Stock #2

Investors could buy Brookfield Renewable Partners (TSX:BEP.UN) stock for less than $100. This stock will enable investors to capitalize on energy transition opportunities. Brookfield Renewable Partners is a pure-play clean energy company that provides investors exposure to the renewable energy sector, which is likely to deliver enormous growth, driven by rapid adoption of green energy and increased investments to bolster capacity. 

Brookfield operates power-generating facilities and provides decarbonization solutions. It owns a well-diversified portfolio of renewable power assets, including wind, solar, and hydroelectric. Brookfield Renewable Partners has almost 34,000 megawatts of renewable power operating capacity and an approximately 157,000-megawatt development pipeline. These attributes position it well to capitalize on growing demand. 

It’s worth highlighting that most of Brookfield’s power output (about 90%) is under contractual arrangements. Moreover, 70% of its revenues are indexed to inflation, supporting organic growth. Further, its contracts have a long-weighted average remaining life of 13-plus years, which adds visibility and stability to its cash flows. 

The company has been growing its funds from operations (FFO) at a double-digit rate, which enables it to enhance its shareholders’ return through higher dividend payments. 

In summary, Brookfield Renewable Partners offers solid growth potential and will likely return cash to its shareholders with higher dividend payouts. 

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aritzia. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

More on Investing

path road success business
Bank Stocks

Scotiabank Is Down 0.9% After Earnings: What Investors Need to Know

Bank of Nova Scotia (TSX:BNS) released earnings yesterday. Here's what you need to know.

Read more »

Hourglass projecting a dollar sign as shadow
Dividend Stocks

For a Shot at $5,000/Year in Passive Income, Buy 6,850 Shares of This TSX Stock

Whitecap Resources is a monthly dividend stock that offers you a tasty dividend yield while trading at a cheap valuation.

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Wednesday, May 29

Besides more Canadian corporate earnings, volatile commodity prices could give further direction to the TSX benchmark today.

Read more »

Happy family father of mother and child daughter launch a kite on nature at sunset

3 Soaring Stocks to Hold for the Next 20 Years

These three stocks are good bets for the long haul, given their healthy long-term growth prospects.

Read more »

grow dividends
Tech Stocks

Celestica Stock Is up 44% Since Earnings: What Investors Need to Know

Celestica continues to benefit from strong demand and production efficiencies, yet the stock remains undervalued.

Read more »

A plant grows from coins.

2 Dividend Stocks Paying 5% or More That Could Beat the Market in 2024 and Beyond 

Here are two top dividend stocks long-term investors may certainly want to consider for their yields and growth profiles right…

Read more »

edit Balloon shaped as a heart
Dividend Stocks

Love Value Stocks? 2 That Are Screaming Buys in May 2024

Patience can pay off by investing in these two value stocks with nice dividends and the potential to turn around.

Read more »

healthcare pharma
Tech Stocks

What’s Going on With WELL Health Stock?

WELL stock (TSX:WELL) made strong moves once again, with record earnings and even higher guidance for 2024.

Read more »