4 Top Stocks to Buy in October

Long-term investors should have these discounted Canadian stocks at the top of their watch lists today.

| More on:
data analyze research

Image source: Getty Images

Canadian investors have had plenty to cheer about in 2024. The S&P/TSX Composite Index is nearing a 15% return on the year, not even including dividends. The index is up about 10% over the past three months alone. 

But just because the market as a whole is soaring doesn’t mean you need to wait for a pullback to start investing. The TSX remains loaded with top-quality stocks that are trading at bargain prices.

Here’s a list of four top Canadian stocks trading at must-buy prices right now.

goeasy

With shares up more than 50% over the past 12 months, goeasy (TSX:GSY) might not be trading at a discount for much longer. Especially with more interest rate cuts likely on the horizon, this consumer-facing financial services provider could be on the verge of seeing demand skyrocket.

goeasy is no stranger to delivering market-beating returns. Even with the stock down about 20% from all-time highs, shares are up a market-crushing 200% over the past five years.

This growth stock can easily fly under the radar, but it deserves a spot on any growth investor’s watch list.

Shopify

Shopify (TSX:SHOP) still has a ways to go to return to all-time highs but the tech stock is loaded with positive momentum today. 

Shares are up more than 200% from their lows in 2022 yet remain down more than 50% below all-time highs.

Despite all of the volatility that Shopify has endured over the past five years, the stock is still up more than 150%. That’s good enough for easily outpacing the returns of the broader market. 

As one of the global leaders in the e-commerce space, this is not a company that I’d bank on slowing down anytime soon. I wouldn’t expect the volatility to slow much either, though, but that’s a small price to pay if you’re a patient long-term investor. 

Air Canada

The airline industry doesn’t have the best track record when it comes to market-beating returns. It’s a cyclical space that’s difficult to time. However, for investors with time on their side, taking a chance on Canada’s largest airline today could be a wise idea.

Contrary to most of its peers, Air Canada (TSX:AC) has been a market-beater in the past. 

It has had trouble returning to pre-pandemic highs, though. Shares are down close to 70% from early 2020. However, in the decade prior to 2020, Air Canada had been a consistent market-beater.

In a cyclical industry like the airline space, I might be hesitant to buy Air Canada if it was trading at all-time highs. But at a discount like this, it’s hard to ignore.

Northland Power

The renewable energy space is another area of the market that has no shortage of discounts to choose from today. In addition, there are lots of impressively high dividend yields, too.

Like many others in the space, Northland Power (TSX:NPI) has been on the decline since early 2021. Shares are down more than 50% since then, excluding dividends. One positive, though, is that the recent decline has sent the dividend yield to above 5%.

In the short term, renewable energy investors may need to continue to be patient. But if you’re bullish on the long-term rise in renewable energy consumption, now’s the time to be loading up on a company like Northland Power.

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 Nicholas Dobroruka has positions in Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.

More on Investing

Double exposure of a businessman and stairs - Business Success Concept
Investing

If You Invested $1,000 in This Canadian Stock 5 Years Ago, You’d Now Have $2,016.90

Stability counts, as it leads to stable results. Case and point is this top Canadian stock that's more than doubled…

Read more »

Close up shot of senior couple holding hand. Loving couple sitting together and holding hands. Focus on hands.
Retirement

Retirees: Here’s How to Boost Your CPP Pension in 2024

You can reduce your after tax CPP amount by making RRSP contributions and investing in index funds like iShares S&P/TSX…

Read more »

Growing plant shoots on coins
Stocks for Beginners

2 Growth Stocks to Buy and Hold Forever

Recent declines in these top Canadian growth stocks could be an opportunity for long-term investors to buy them at a…

Read more »

Female hand holding piggy bank. Save money and financial investment
Dividend Stocks

How to Earn $668 in Passive Income With Just $10,000 in Savings

Investing in blue-chip dividend stocks such as Enbridge should help you generate a passive-income stream at a low cost.

Read more »

senior man and woman stretch their legs on yoga mats outside
Retirement

Discover the Best TFSA Stocks for a Worry-Free Retirement

With your TFSA, you can balance stable income and growth to build a solid stock portfolio for a worry-free retirement.

Read more »

Man data analyze
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Here’s why these two top TSX dividend stocks could continue to outperform the broader market by a wide margin in…

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

How to Use Your TFSA to Earn $4,750 Per Year in Tax-Free Passive Income

This TFSA income strategy can boost returns while reducing portfolio risk.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

Buy 1,644 Shares of This Leading Canadian Dividend Stock for $100/Month in Passive Income

Whitecap Resources is a monthly dividend stock that is positioned to grow its payout at an enviable pace through 2029.

Read more »