Investing in the stock market offers Canadians a tonne of benefits, one of the biggest of which is the wide variety of stocks you can consider for your portfolio. With so many stocks trading on the TSX, there is never a shortage of top Canadian stocks to buy, no matter what the market conditions.
So, if you’ve got cash that you’re looking to put to work, here are my four top TSX stocks to buy right now.
Two top TSX stocks to buy right now before interest rates continue to decline
A few years ago, as inflation surged and interest rates were simultaneously climbing, many top Canadian stocks were negatively impacted. Now, however, with inflation having cooled off and interest rates beginning to decline, there are several top TSX stocks you’ll want to buy right now while they are still cheap.
Two of those top stocks I’d recommend investors consider today are B2Gold (TSX: BTO) and InterRent REIT (TSX: IIP.UN).
As one of the lowest-cost-producing gold stocks, B2Gold has a tonne of potential to see a strong rally in the near term. Gold prices are usually negatively impacted by rising interest rates since gold doesn’t provide a yield, and income-producing assets become much more favourable as interest rates rise.
Already, we’ve seen gold prices rally to start the year in anticipation of lower interest rates, and as rates eventually start to decline, particularly in the United States, the price of gold should continue to climb higher, improving the profitability of producers like B2Gold.
Therefore, with B2Gold trading cheaply, plus offering a current dividend yield just shy of 5.5%, it’s undoubtedly one of my top TSX stocks to buy right now.
Meanwhile, as a residential real estate investment trust (REIT) that uses leverage to boost profits and is consistently investing in growing its portfolio, InterRent could also see a significant boost in profitability as interest rates fall.
For years, InterRent was one of the best REITs to buy for growth. It consistently improved its operations and grew revenue and funds from operations year after year.
So, although higher interest rates caused a temporary dip in both InterRent’s profitability and price, as they continue to fall, InterRent has a tonne of potential to start seeing another lengthy and sustained rally.
In fact, for 2024, analysts estimate InterRent’s adjusted funds from operations (AFFO) will jump by over 13% as well as another 10% increase next year.
Therefore, while InterRent trades at a forward price/AFFO ratio of just 23 times, below its five-year average of 29.7 times, it’s certainly one of the top TSX stocks to buy right now.
Two of the best Canadian growth stocks
There are several growth stocks on the TSX to buy right now as well, such as VerticalScope Holdings (TSX: FORA) and Cargojet (TSX: CJT).
VerticalScope is a small $180 million stock with significant growth potential due to its business model of building online communities, which offer growing monetization opportunities.
By owning and operating specialized websites and forums, VerticalScope is a compelling option for advertisers as it offers a more effective way of reaching their target audience.
This targeted approach not only enhances ad performance but also drives revenue growth, making VerticalScope an intriguing investment as the digital advertising market continues to innovate and expand.
Plus, not only do analysts expect a more than 12% growth in revenue in 2024, but VerticalScope is also expected to begin turning a profit this year.
Meanwhile, Cargojet has long been benefiting from the growing popularity of e-commerce and online shopping, where overnight, time-sensitive shipping is so important.
The stock was negatively impacted over the last few years as the economy slowed down and consumers were spending less on discretionary products. However, in recent months, e-commerce sales have been recovering, and analysts now expect a big jump in sales and profitability for Cargojet in the coming years.
Therefore, while Cargojet continues to trade cheaply, there’s no question it’s one of the best TSX stocks to buy right now. Currently, Cargojet’s forward price-to-earnings ratio is just 26.2 times, well below its five-year average of 37.9 times.
So, while you can buy this high-potential growth stock cheaply, it’s easily one of the best TSX stocks to consider today.
