Over the last few years, both surging inflation and higher interest rates have impacted the prices of stocks across the TSX. Therefore, as inflation continues to cool off and interest rates begin to decline, several of the best Canadian stocks are worth investing in right now.
With the opportunity for many stocks to begin to rally over the coming months, there’s sure to be a lot of excitement and anticipation from investors.
However, as important as it is to take advantage of the current market environment and buy stocks as cheaply as possible, it’s also essential to ensure that the stocks you invest in are the best of the best and have the potential to grow their operations for years.
So, with that in mind, if you’ve got some cash that you’re looking to put to work today, here are two of the best stocks on the TSX to invest in right now.
One of the best Canadian stocks to buy right now while it’s still ultra-cheap
Although many stocks are still undervalued due to the macroeconomic headwinds we’ve faced over the last few years, there’s no doubt that one of the cheapest stocks on the market and one of the best to buy right now is Cineplex (TSX:CGX), the entertainment giant.
Cineplex’s struggles date all the way back to the pandemic when lockdowns and then indoor capacity restrictions severely hindered its ability to generate revenue.
Now, though, with all those headwinds in the rearview and the Hollywood film industry now caught up after the strikes last year, Cineplex has a tonne of opportunity to recover and has already been reporting strong box office numbers, showing why it’s one of the best stocks to buy right now.
For the year, analysts are now predicting that its sales will only decline by 3.5% this year, after a slow start, in part due to a lack of content as a result of the Hollywood strikes last year.
Furthermore, and even more importantly, though, analysts estimate that Cineplex’s revenue will increase another 12% next year. Moreover, Cineplex is also expected to generate normalized earnings per share (EPS) of $0.84 next year.
Therefore, while Cineplex trades at just 12.8 times its expected earnings in 2025, it’s certainly one of the best stocks to invest in right now. For comparison, prior to the pandemic, its five-year average forward price-to-earnings ratio was upwards of 26.3 times.
A high-potential growth stock for long-term investors
In addition to Cineplex, another of the best Canadian stocks to invest in right now, especially while it’s still undervalued, is Cargojet (TSX:CJT).
Cargojet has a tonne of potential and a solid position in an industry that could continue growing for years, which is why it’s one of the best stocks to buy right now.
As a provider of time-sensitive overnight air cargo services, Cargojet has a significant opportunity to see demand continue to rise over the coming years.
Overnight shipping goes hand in hand with online shopping. In many cases, consumers want their goods as soon as possible after purchasing them, and businesses like Cargojet make that happen.
So, while more e-commerce sales should translate to more business for Cargojet, its companies like Cargojet and their ability to offer time-sensitive overnight shipping also lead to more online shopping.
The stock had been cheap for months now as a slowdown in the economy led to a slowdown in discretionary shopping, especially when it comes to e-commerce. However, as the economy improves, so should discretionary spending, and we’ve already begun to see Cargojet recover.
The stock still has a long way to go, though, especially with analysts predicting its sales will increase by over 11% this year and another 6% next year. Furthermore, its normalized EPS is estimated to jump by over 100% this year and another 24% next year as Cargojet improves its margins.
Therefore, while you can buy this high-potential growth stock at a reasonable valuation, it’s easily one of the best Canadian stocks to invest in right now.
