The Canadian equity market has trended higher, led by the economy’s resilience, easing inflation, and expectations of further rate cuts. While top Canadian stocks have marked remarkable gains over the past year, shares of several fundamentally strong companies still have ample room for growth and deliver above-average returns.
Therefore, if you are considering investing $3,000 in November, here are the top three TSX stocks to buy now.
goeasy
goeasy (TSX:GSY) is an attractive Canadian stock investors can consider for its solid growth prospects, attractive valuation, and higher dividend payments. The sub-prime lender has consistently delivered double-digit revenue and earnings growth over the past decade. Notably, its top and bottom lines increased at a compound annual growth rate (CAGR) of more than 20%. Thanks to its growing earnings, goeasy consistently increased its dividend over the past 10 years.
goeasy’s consistent financial performance and ability to reward shareholders with higher cash has driven goeasy’s stock price higher. Shares of this financial services company have gained about 227% in five years and about 962% in a decade. Moreover, the stock has consistently outperformed the benchmark index.
goeasy stock could continue to trend higher as the company is well-positioned to capitalize on a growing subprime lending market. Further, it is poised to benefit from diversified funding sources, high loan demand, and solid credit underwriting capabilities. In addition, its product and geographical expansion will likely drive its financials. The company’s strong balance sheet, stable credit performance, and improved operating leverage will likely cushion its bottom line, drive its dividend payments, and support its stock price.
TerraVest Industries
TerraVest Industries (TSX:TVK) is another solid stock worth buying. Notably, shares of this leading industrial manufacturer have skyrocketed, rising about 353% in three years and 905% in five years. The stock also appreciated substantially by over 198% this year. Despite the rally, TerraVest stock has more room for growth, considering the higher demand for its services and products, which supports its solid financials.
The momentum in the service segment and growth in its compressed gas distribution equipment and residential and commercial petroleum tanks bode well for future growth. The expansion of its product offerings and investments in improving manufacturing efficiency will likely boost its financials, thereby driving the stock price.
TerraVest’s solid balance sheet suggests that the company could continue to grow its free cash flows through organic growth and acquisitions. This will enable the company to enhance its shareholder value through dividend payments.
Celestica
Celestica (TSX:CLS) is a compelling long-term bet. It offers supply chain solutions and electronic manufacturing services. Given its exposure to the fast-growing artificial intelligence (AI) sector, shares of this Canadian tech company have jumped about 1,052% in the last five years and are up over 250% in just one year.
The stock has further upside potential, as Celestica will likely benefit from increased investments in AI infrastructure, particularly in data center hardware such as servers, networking equipment, and storage.
Celestica’s hardware platform solutions segment will continue to deliver solid growth, driven by high demand within its Ethernet switch business. Moreover, its server business will likely gain from the solid demand for high-performance computing platforms. Celestica’s storage solutions will likely gain from AI data centre buildouts. Overall, Celestica is poised to deliver above-average returns, driven by high demand for its offerings and AI-led tailwinds.
