The Ultimate TSX Stocks to Buy With $1,000 Right Now

Got $1,000? Here are three stocks that are steadily growing their earnings and free cash flows per share.

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The TSX Composite Stock Index started strong with a 6% rise at the start of 2024. However, most of those gains have reversed in the past few months.

Regardless of the broader market, you can still find stocks to be bullish about for the long term. Sure, anything can happen in the near term. Stocks fluctuate for a variety of reasons. However, pick stocks that are steadily growing their earnings and free cash flows per share, and you can do very well.

Here are three stocks to look at buying with $1,000 today.

A top-performing TSX stock to buy on a pullback

TFI International (TSX:TFII) has been an exceptional long-term stock. Over the past five years, investors would be up 367% (or 36% compounded annually).

TFI has a diversified logistics, trucking, and courier business across Canada and the United States. It has grown through a combination of multiple acquisitions and a disciplined operating strategy.

There are hundreds of small mom-and-pop transport businesses that can benefit from operating under TFI’s banner. As a result, it still has ample room to expand by acquisitions.

Its stock has been volatile due to a challenging freight environment. This won’t last forever, but it could persist throughout 2024. This could make for good opportunities to add to the stock if it were to experience any serious pullbacks. Its current valuation is reasonable today.

A diversified mix of steady, essential businesses

Another stock worth buying with $1,000 today is Calian Group (TSX:CGY). It has not performed that well recently. Its stock is down 5% in the past 52 weeks. The consulting firm had an earnings miss in the summer of 2023. The stock fell and it has not yet recovered.

However, the company was quick to correct. Results in recent quarters have been very strong. Yet, the market has only yawned. That creates an opportunity for value-minded investors.

Calian has a very strong business. It is a major vendor to the Canadian government and military for healthcare, training, and satcom technologies. Recent acquisitions have helped diversify its geographic, service, and customer exposure. This is opening opportunities to cross-sell services across its core business segments.

Combined with further expected acquisitions, this company could continue to grow by a high teens rate for years ahead. Despite its attractive growth prospects, this stock trades for 11 times earnings. Today, it pays a 2% dividend yield, which is an added bonus.

A European stock consolidating software

Topicus.com (TSXV:TOI) is another under-the-radar stock to buy with $1,000. While Topicus sounds like some sort of fungus medication, it is in fact a portfolio of niche software businesses across Europe.

Topicus was spun-out of its acclaimed parent company, Constellation Software, a couple of years ago. Europe is an attractive place to own specialized vertical market software businesses.

Europe has a diverse mix of countries, languages, rules, regulations, and governments. All these require specialized niche software. That means there are hundreds, if not thousands, of acquisition opportunities.

Topicus has been growing by about 20% a year. This business generates a lot of cash. It even paid out a special dividend earlier this year.

This is not the cheapest stock. However, after a recent pullback, its stock valuation is not demanding. It could be a good time to pick up shares if you have a 5- or 10-year horizon.

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 Robin Brown has positions in Calian Group, Constellation Software, TFI International, and Topicus.com. The Motley Fool has positions in and recommends Topicus.com. The Motley Fool recommends Calian Group and Constellation Software. The Motley Fool has a disclosure policy.

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