Canadian stocks are keeping pace with the bull run of their U.S. counterparts. The S&P/TSX Composite Index hit a new record high on October 4, 2024, marking its fourth straight winning week.
A $1,000 investment in winners could reward you with generous, sizeable returns. Right now, the best stocks to buy are from top-performing sectors such as energy, healthcare, and technology.
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Energy
The energy sector continues to sizzle, rising 8.5% in the last five trading days to bring its year-to-date gain to 17.3%. CES Energy Solutions (TSX: CEU) stands out from its industry peers. At $7.85 per share, the small-cap stock outperforms by 130.9%-plus year-to-date. An added perk is the modest 1.5% yield and quarterly cash dividend.
CES Energy operates in the Oil & Gas Equipment & Services industry. Its primary business is to provide technically advanced consumable chemical solutions to clients in North America. The solutions, including drilling fluids, are used throughout an oilfield’s lifecycle.
The $1.8 billion company recently reported a record-setting quarter, indicating financial resilience, strong cash flow generation, and profitability. In Q2 2024, total revenue increased 7% to $553.2 million versus Q2 2023, while net income jumped 42% year-over-year to $48.2 million. Free cash flow (FCF) reached $54.8 million.
CES Energy Solutions ranked fourth in the 2024 TSX30 List, a flagship program for Canada’s top growth stocks. Its overall return in three years is 360.3%.
Healthcare
Vitalhub (TSX: VHI) shines and outperforms the healthcare sector (+13.9%) thus far in 2024. At $8.97 per share, current investors enjoy a 119.9% year-to-date gain. Like CES Energy Solutions, this small-cap is a TSX30 winner (ranked 26th). Some market analysts say this is one high-growth stock to watch.
The $465.2 million software company offers a comprehensive suite of Software-as-a-Service (SaaS) solutions for Health and Human Services providers. Its client base comprises hospitals, regional health authorities, mental health and addiction services providers, long-term care (LTC) facilities, and correctional services.
Given its organic growth and strategic investments, its CEO, Dan Matlow, said Vitalhub is building on a strong foundation. In the first half of 2024, revenue and net income rose 23% and 25% year-over-year to $31.5 million and $983.4 million, respectively. Matlow added that VitalHub boasts a solid platform and is well-positioned to capitalize on emerging opportunities and navigate future challenges.
Technology
Blackline Safety (TSX: BLN), a niche player, is among TSX’s promising growth stocks. It has become a global connected safety leader because of its hardware-enabled SaaS business model. At $6.01 per share, the year-to-date gain is 69.3%, while the trailing one-year price return is 84.4%.
The $490.8 million company provides direct-to-cloud technology with integrated connectivity and products for lone worker protection and gas detection. Besides the scalable business model, Blackline has visible growth potential owing to the massive global opportunity. The addressable industrial-connected gas detection market is around US$3.5 billion.
Strong buys
CES Energy Solutions, Vitalhub, and Blackline Safety are strong buys today for their competitive advantages and thriving businesses. Buy them now before the share prices soar out of your reach.
