When investing for long-term wealth, stocks stand out as one of the most effective options. Stocks can deliver returns well beyond most asset classes over time. Investing in companies with solid fundamentals, well-established business models, consistent revenue growth, and profitability can help investors achieve above-average returns.
So, for investors planning to invest $5,000 in November, here are the top Canadian stocks to buy now.
Aritzia
Aritzia (TSX:ATZ) is a top TSX stock to invest in November. The clothing company is poised to benefit from higher demand during the holiday season. Further, its changing product mix and new seasonal styles augur well for revenue growth. Since fiscal 2016, Aritzia has achieved an impressive compound annual growth rate (CAGR) of 19% in revenue and 13% in net income, highlighting its solid performance over time.
Looking forward, Aritzia’s expansion plans, including new boutique openings, a growing e-commerce presence, enhanced omnichannel capabilities, and heightened brand awareness, should continue driving revenue and profit growth. Additionally, the company’s focus on reducing warehousing costs and optimizing spending will help protect its profitability, potentially boosting its share price.
WELL Health
WELL Health’s (TSX:WELL) low valuation and high growth make it a compelling stock to buy now. This rapidly expanding omnichannel healthcare provider has built an extensive presence across Canada and the U.S., offering the largest network of clinics for primary care, specialized services, and diagnostics. WELL Health consistently generates solid revenue driven by its acquisitions and growth in omnichannel patient visits.
Further, leverage from higher sales and its focus on driving efficiency, reducing costs, and lowering debt augur well for growth and profitability. WELL Health is also leveraging artificial intelligence (AI) to expand its product portfolio and offerings, which will likely drive its revenue and support its share price. Further, its stock is trading at a forward enterprise value/sales multiple, which is near its 52-week low.
Dollarama
Dollarama (TSX:DOL) is a top Canadian stock to buy now for growth, stability, and income. The company’s strategy of selling products at low and fixed-price points enables it to attract customers regardless of the economic situation. Moreover, its extensive store presence supports its financials and share prices.
Dollarama stock has delivered above-average returns over the past decade. Moreover, its value pricing strategy, growing store base, extensive product range, efficient product sourcing, and productivity savings will likely boost its earnings, dividends, and share price.
Cargojet
Cargojet (TSX:CJT) is a top Canadian stock to buy in November. The leading air cargo company will benefit from the heightened demand for its services during the holiday shopping season. This will likely drive its financials and share price. Beyond the higher seasonal demand, Cargojet’s long-term contracts with minimum volume guarantee and renewal will likely add stability and drive steady growth.
Further, its extensive network and capabilities to offer next-day service to over 90% of Canadians provide a competitive advantage over peers.
Cargojet’s higher revenues and focus on optimizing its domestic network, reducing operational costs, and improving operational efficiency will help improve margins and boost its cash position. Overall, Cargojet is well-positioned to deliver solid growth in the long term, with the holiday shopping season acting as a catalyst.
