The 2024 Paris Olympics may be over, but Canadian investors shouldn’t stop thinking about the TSX-traded companies that are continuing to go for gold. Arguably, these names are worthy of gold medals for creating great wealth for investors over the long haul. Indeed, not just any Canadian firm is worthy of your Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio, especially as macro headwinds begin to move in.
In this piece, we’ll check in with two solid Canadian stocks that I think should be picked up before they can make a run for new heights.
Alimentation Couche-Tard
First, we have convenience store giant Alimentation Couche-Tard (TSX: ATD), which has started to pick up traction in recent sessions. With shares of ATD now up more than 5% since its August lows, long-term growth investors may wish to buy the name on the way up before the firm can flex its muscles. Undoubtedly, gas stations and convenience stores have been doing incredibly well despite the challenged state of the consumer. Over the long haul, Couche-Tard must get serious about embracing the shift from gas-powered vehicles to electric vehicles (EVs).
Indeed, uncertainties regarding the shift have likely weighed on the stock in recent years. Though it’s tough to tell how the firm will react as more EVs roll in, I think new investors have little to fear, given the company’s been thriving in Norway, a market that’s embraced EVs with open arms. In America and Canada, the shift to EVs is likely going to be gradual. As such, Couche-Tard needs to find the right pace as it rolls out fast chargers across various locations.
In the meantime, Couche-Tard needs to double down on fresh food and restaurant-quality made-to-order meals if it’s to really take its stock to the next level. Additionally, continuing to make smart deals will also help act as a huge driver in the stock. As a new chief executive officer (CEO) — Alex Miller — steps into the corner office in late summer, investors may wish to punch their ticket into the name.
Over the medium term, I’d not be surprised if shares break the $100 mark. Couche has been a gold medal performer in recent years, and investors should expect more of the same under the new CEO.
Barrick Gold
Speaking of gold, we have top-tier miner Barrick Gold (TSX: ABX), which I’ve described as being the gold standard in the mining scene. This past week, the stock blasted off more than 9% on the back of an incredible earnings report. As you may know, gold prices have been surging to new heights, acting as a tide that’s lifted most boats in the gold-mining scene.
With the company hiking its payout (the dividend yields 2.1% right here) and buying back its own stock, perhaps it’s time investors punch their ticket to the name before the stock itself makes a run for new heights. It’s not just strength in gold that could help ABX flirt with $40 per share, but steps taken to improve upon operating economics. Sure, Barrick isn’t the best-run miner on the planet. But it’s on the right track and things have been looking up of late.
