3 Soaring Stocks I’d Buy Now With No Hesitation

Worried you’ve missed the boat? Worry no more, as these three soaring stocks still have plenty of room to run.

| More on:
3 colorful arrows racing straight up on a black background.

Source: Getty Images

Soaring stocks might look like they’ve already taken off. But that doesn’t mean you’ve missed the boat. Often, a stock’s rise is based on strong fundamentals, like growing revenue or innovative products. And this means there’s still room for future gains. Plus, market momentum can last a long time. And savvy investors can benefit from long-term growth rather than chasing short-term highs. So, don’t stress; there’s still potential ahead! Especially with these three soaring stocks.

IAG

Despite its recent climb, iA Financial (TSX:IAG) remains a strong buy due to several key factors that suggest continued growth potential. The company recently posted impressive Q2 2024 earnings, with earnings per share (EPS) of $2.75, beating expectations by $0.17. This demonstrates that iA is not only benefiting from short-term momentum but is solidly outperforming forecasts. Additionally, iA Financial has seen consistent revenue growth, with its Q2 revenue reaching $1.6 billion – a notable increase year over year. This strong financial performance is underpinned by sound fundamentals, including a manageable debt load and steady operating cash flow. And this positions the company well for future gains.

What’s more, iA’s valuation remains attractive, even with the stock’s recent rise. The stock is trading at a forward price/earnings (P/E) ratio of 9.5, thus indicating it’s still undervalued relative to its future earnings potential. The company’s forward annual dividend yield of 3%, along with its history of increasing dividends, adds to its appeal for income-focused investors. With analysts forecasting further earnings growth of around 16.8% per year, the stock is likely to keep its upward trajectory, thus making now a great time to invest before it climbs even higher.

WFG

Even after climbing in the last month, West Fraser Timber (TSX:WFG) remains a strong buy for several reasons. The company continues to show strong financial performance, reporting Q2 2024 revenues of $1.7 billion and beating analyst expectations of $1.6 billion. Although its EPS missed slightly at $1.20, the revenue growth of 6% year-over-year highlights the company’s resilience in challenging markets. West Fraser’s strategic investments in operational improvements, including the ramp-up of its Allendale mill, should also lower costs and enhance output in the coming years, further boosting profitability.

Furthermore, West Fraser’s strong balance sheet and consistent dividend growth make it attractive for long-term investors. The company raised its quarterly dividend to $0.32, providing a steady income stream, and its cash flow remains solid with $1 billion in reserves. Demand for wood products is expected to remain stable and costs in key areas like energy and resin are projected to stabilize. Therefore, West Fraser is well-positioned for continued growth. This combination of solid revenue growth, operational efficiency, and stable dividends makes WFG an appealing investment, even after its recent surge.

TRP

Even after its recent climb, TC Energy (TSX:TRP) remains a strong buy due to its solid financial performance and strategic initiatives. In Q2 2024, the company reported strong results, including $2.7 billion in comparable earnings before interest, taxes, depreciation and amortization (EBITDA). This reflects healthy year-over-year growth. Plus, net income attributable to common shares soared to $1 billion, a significant increase from last year. These robust earnings showcase the company’s ability to perform even in a challenging energy market, driven by its leadership in the North American natural gas infrastructure sector.

TC Energy is also actively working on improving its financial position with a $3 billion asset divestiture program. This includes the recent sale of its Portland Natural Gas Transmission System for $1.1 billion. Along with the upcoming spin-off of its Liquids Pipelines business into South Bow Corporation, these should strengthen its balance sheet and create additional growth opportunities. Moreover, with a forward P/E ratio of 14.4 and a solid dividend yield above 6%, TRP offers both value and income for investors, especially those looking to capitalize on the company’s future growth potential.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends West Fraser Timber. The Motley Fool has a disclosure policy.

More on Dividend Stocks

money goes up and down in balance
Dividend Stocks

This 6% Dividend Stock Is My Top Pick for Immediate Income

This Canadian stock has resilient business model, solid dividend payment and growth history, and a well-protected yield of over 6%.

Read more »

ways to boost income
Dividend Stocks

1 Excellent TSX Dividend Stock, Down 25%, to Buy and Hold for the Long Term

Down 25% from all-time highs, Tourmaline Oil is a TSX dividend stock that offers you a tasty yield of 5%…

Read more »

Start line on the highway
Dividend Stocks

1 Incredibly Cheap Canadian Dividend-Growth Stock to Buy Now and Hold for Decades

CN Rail (TSX:CNR) stock is incredibly cheap, but should investors join insiders by buying the dip?

Read more »

bulb idea thinking
Dividend Stocks

Down 13%, This Magnificent Dividend Stock Is a Screaming Buy

Sometimes, a moderately discounted, safe dividend stock is better than heavily discounted stock, offering an unsustainably high yield.

Read more »

Canadian Dollars bills
Dividend Stocks

Invest $15,000 in This Dividend Stock, Create $5,710.08 in Passive Income

This dividend stock is the perfect option if you're an investor looking for growth, as well as passive income through…

Read more »

A Canada Pension Plan Statement of Contributions with a 100 dollar banknote and dollar coins.
Dividend Stocks

3 Compelling Reasons to Delay Taking CPP Benefits Until Age 70

You don't need to take CPP early if you are receiving large dividend payments from Fortis Inc (TSX:FTS) stock.

Read more »

A worker overlooks an oil refinery plant.
Dividend Stocks

Better Dividend Stock: TC Energy vs. Enbridge

TC Energy and Enbridge have enjoyed big rallies in 2024. Is one stock still cheap?

Read more »

Concept of multiple streams of income
Dividend Stocks

Got $10,000? Buy This Dividend Stock for $4,992.40 in Total Passive Income

Want almost $5,000 in annual passive income? Then you need a company bound for even more growth, with a dividend…

Read more »