Most Canadian stocks have witnessed a strong rally in the last few months as the Bank of Canada’s decision to cut interest rates in the last three consecutive meetings, which is expected to boost economic growth and consumer spending, has cheered investors. This is one of the key reasons why the TSX Composite benchmark currently trades with strong 9.7% year-to-date gains.
While the market continues to show bullish signs, in such market conditions, finding the right stocks to invest in for the long term could be key to maximizing returns. In this article, I’ll highlight two of the best Canadian stocks you can buy with as little as $1,000 right now. Both stocks offer strong growth potential but haven’t seen much appreciation of late, making them look attractive for investors looking for cheap stocks to build wealth in the long run.
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Nutrien stock
The first on my list is Nutrien (TSX: NTR), which is continuing to underperform the broader market by a wide margin for the second consecutive year in 2024. This Saskatoon-headquartered crop inputs giant currently has a market cap of $31.1 billion as its stock trades at $62.83 per share with 16% year-to-date losses.
This decline in Nutrien shares could be attributed to the recent weakness in its financial growth trends. In the latest quarter ended in June 2024, the ongoing market instability in Brazil led to a US$335 million non-cash impairment and weakened the company’s earnings from the region. Similarly, lower fertilizer selling prices also affected its profitability. Nevertheless, the company continued to expand its retail margins in North America and Australia.
Despite these short-term challenges, Nutrien’s continued focus on expanding its global potash presence and improving operational efficiency positions it well to leverage strong demand in its core markets. Considering this, the recent declines in NTR stock could be an opportunity for long-term investors to buy this fundamentally strong stock at a discount, which also rewards its investors with attractive dividends. At the current market price, it offers a decent 4.7% annualized dividend yield.
Mullen stock
Mullen Group (TSX: MTL) could be another attractive stock that you can consider buying amid the ongoing stock market rally. This Okotoks-based transportation and logistics company mainly focuses on providing trucking and other specialized transportation solutions to various industries.
After sliding by 3.5% last year, MTL stock hasn’t seen any major change so far in 2024, as it trades at $14.12 per share with a market cap of $1.2 billion. At this market price, the company’s annualized dividend yield stands at 5.9% and it distributes these payouts every month.
In the second quarter, Mullen’s revenue remained nearly flat on a year-over-year basis at $495.6 million. Nevertheless, efficient operations and better cost control helped the company post improved operating income before depreciation and amortization of $85.7 million, up 2.8% from a year ago.
Although weakness in freight demand has affected Mullen’s business growth in the last few quarters, a recent decline in interest rates is likely to boost consumer demand and economic activity, which could positively impact the transportation and logistics sector in the coming quarters. Considering that, MTL stock has potential to outperform the broader market going forward.
