Buying and holding Canadian stocks with solid fundamentals, growing earnings and cash flows, and solid growth prospects can help generate significant wealth over time. Moreover, diversifying your portfolio can help achieve above-average returns and lower risk. So, if you have $1,000 to invest, here are the best stocks to buy right now.
Celestica stock
Celestica (TSX:CLS) is an excellent stock for creating wealth. The supply chain solutions and electronic manufacturing services provider is benefiting from the higher spending on artificial intelligence (AI) infrastructure.
The surge in AI spending drives demand for Celestica’s hardware platform solutions, suggesting a solid trajectory for revenue and earnings. Over the past year, the stock has impressively climbed over 182%, and this upward momentum will likely be sustained.
The growing emphasis on AI infrastructure, especially in data centre hardware, positions Celestica for sustained growth.
One of Celestica’s standout areas is its Ethernet switch business, which is experiencing rapid expansion due to robust demand for its cutting-edge networking switches, including the 400G and 800G models. The company’s server and storage segments are also set for solid growth, fueled by the increasing need for high-performance computing platforms.
Beyond AI, Celestica’s diversified portfolio and a rebound in the industrial business are expected to further enhance its financial performance and support ongoing growth.
Dollarama stock
Dollarama (TSX:DOL) is one of the best Canadian stocks to buy and hold for the long term. The retailer operates a defensive business and offers stability, dividend income, and growth. The retailer focuses on value pricing, offering a wide variety of products at low, fixed price points, with most items priced up to $5. This approach attracts a broad customer base and drives traffic to its stores, leading to consistent growth in both revenue and profit margins.
Over the past five years, Dollarama’s stock has grown at a compound annual growth rate (CAGR) of about 28%. This translates to an impressive 240% increase in share value. Moreover, Dollarama has increased its dividend payments 13 times since 2011, rewarding shareholders with reliable income alongside capital gains.
The company continues to expand its footprint, which is expected to significantly enhance its revenue in the coming years. Additionally, by bolstering its online offerings, Dollarama is making shopping more convenient for Canadian consumers, which will further drive sales. In summary, Dollarama’s value pricing, extensive store base, direct sourcing, and operational efficiencies position it well to deliver notable returns in the long run.
goeasy stock
goeasy (TSX:GSY) is a top TSX stock to buy now. This subprime lending company has outperformed the broader markets with its returns by a significant margin. Further, it has enhanced its shareholders’ value through higher dividend payments. goeasy’s stellar capital gains and dividend payouts are supported by consistent double-digit growth in its revenue and earnings.
The company’s leadership in the large subprime lending market, omnichannel offerings, multiple products, geographic expansion, and diversified funding sources are likely to drive its consumer loan portfolio and revenue. Higher revenue, steady credit performance, and operation efficiency will lead to earnings expansion. This will support higher dividend payments and drive the stock price higher.
