Stocks are one of the top investment avenues for creating wealth in the long term. However, when investing for the long term, investors should focus on TSX stocks with strong fundamentals, solid growth potential, and the ability to deliver profitable growth. Moreover, one should focus on diversifying their portfolio. This helps manage risk and ensures you’re positioned to take advantage of various market opportunities.
For those ready to start with a substantial investment – say, $50,000 – here are the best Canadian stocks to buy now. These companies have solid long-term growth prospects and are likely to deliver above-average returns.
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Cameco stock
Cameco (TSX: CCO) is an exciting stock to consider now. The world’s top uranium producer is well-placed to take advantage of the rising demand for clean energy. With its diverse portfolio across the entire nuclear fuel cycle, Cameco has a competitive edge in meeting the increasing need for nuclear power.
Multiple catalysts are driving nuclear energy demand. Increased concerns about energy security, the push for electrification, global decarbonization efforts, and surging demand from artificial intelligence (AI) data centres all contribute to a brighter future for nuclear energy. As demand rises, Cameco’s low-cost production and favorable pricing environment will continue to support its strong financial performance.
Cameco is well-positioned for long-term growth thanks to a solid portfolio of long-term contracts, planned expansions, and exciting exploration projects. Plus, Cameco’s ongoing investments across the nuclear value chain suggest the company could see substantial growth in the long term.
CES Energy Solutions stock
CES Energy Solutions (TSX: CEU) is another compelling bet. It offers consumable chemical solutions for the oilfield industry. It will likely benefit from its asset-light business model, countercyclical balance sheet, and substantial exposure to North American oil and gas and water production. This positions it well to generate significant free cash flow irrespective of the industry cycles. Further, the company’s higher recurring production chemical revenues enhance financial stability.
Shares of CES have risen over 177% in one year and have more room for growth amid increasing adoption of advanced chemical technologies, growing demand for drilling and production chemicals, stable upstream activity, and heightened service intensity.
The company is strategically positioned to capitalize on growth opportunities with its robust infrastructure, vertically integrated business model, and favourable commodity pricing across North America.
Shopify stock
Shopify (TSX: SHOP) is poised to benefit from the ongoing digital shift, making it a compelling long-term bet. This multi-channel commerce platform provider is steadily growing its gross merchandise and payment volumes, which will drive higher revenues and stock.
The company’s focus on innovative product launches, adding new merchants to its platform, and extending its sales and marketing channels will likely boost its revenues. Moreover, Shopify’s unified solutions, growing share in the e-commerce space, ongoing strength in its offline retail and B2B channels, and increasing payment penetration position it well to deliver solid growth.
In addition, Shopify’s transition towards an asset-light business model and focus on delivering sustainable earnings augurs well for growth.
Dollarama Stock
Investors could consider Dollarama (TSX: DOL) stock for stability, growth, and consistent dividend income. The company sells consumer products at low and fixed prices, making it a go-to shopping destination regardless of the economic situation.
Thanks to its defensive business model and value proposition, Dollarama has consistently delivered solid financials. Moreover, it enhanced shareholder value through dividend hikes, driving returns outpacing the Canadian benchmark index.
The retailer’s ability to increase its transaction volumes and customer base will continue to drive its revenues. Further, Dollarama’s value-based pricing strategy and focus on continued store expansion will likely drive higher customer traffic, boosting its revenue. In addition, the company’s efficient sourcing and efforts to lower costs will likely enhance profitability, supporting higher payouts and boosting its share price.
