Here Are My Top TSX Stocks to Buy Right Now

If you’re looking for some top TSX stocks to buy right now, here are two of my top recommendations.

Daniel Da Costa

Author Bio Daniel joined The Motley Fool Canada in 2019 and brings experience in banking, investing, and financial analysis. Growing up as the son of a proprietary stock trader and educator, he developed an early interest in financial markets and a passion for helping Canadians improve their financial well-being. His work spans investment research, economic analysis, and econometric modelling, with a focus on understanding the broader forces that influence businesses, markets, and the economy. As an investor, Daniel looks for high-quality businesses with long-term growth potential, reliable income, and attractive valuations. Outside of finance, Daniel enjoys spending time with his family, playing hockey, running, and sailing. Areas of Expertise Investment research, economic analysis, econometric modelling, banking, financial analysis, business fundamentals, long-term investing, dividend investing, and company valuation. Favorite Investment Quote "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett

Published December 27, 2024 9:30 pm EST

Heading into 2025, despite some uncertainty in markets, there’s reason for optimism among North American investors. So, while many of the top TSX stocks trade off their highs, right now is the perfect time to find high-quality investments to buy.

Not only are policymakers hoping the economy can experience a soft landing as interest rates decline, but a new administration south of the border could also spark a significant rally.

Since we can’t ignore the uncertainty that still persists, though, the key for investors will be to focus on buying the highest-quality stocks that they have faith in over the long haul.

This way, even if the risk and uncertainty increase in the near term, you can be confident in the stocks you own and be comfortable holding these investments through turbulent times until the market can recover.

So, with that in mind, if you’re looking for some of the top TSX stocks to buy right now, here are two of my top recommendations.

Pile of Canadian dollar bills in various denominations — Source: Getty Images

One of the best stocks on the TSX to buy right now and hold for years

Despite its incredible performance in 2024, up over 48% year to date, Dollarama (TSX: DOL) remains one of the top TSX stocks to buy right now, especially since it’s pulled back from its highs in recent weeks.

Not only has Dollarama proven for years now that it’s one of the best and most consistent growth stocks on the market, but its business model is one that can give investors confidence no matter what the economic environment.

If the economy is struggling, consumers naturally turn to Dollarama to help save money and stretch their budgets. In fact, throughout 2022 and 2023, when interest rates rapidly rose and inflation surged, Dollarama posted revenue increases of 16.7% and 16.1%, respectively.

However, even when the economy is rebounding or growing, Dollarama continues to see its discounted products resonate with consumers, especially if many of those consumers have made shopping at discount retailers like Dollarama part of their routines.

So, it’s not surprising to see that since Dollarama went public, it’s never had a single year where its sales didn’t increase year over year or where it didn’t generate a profit.

That’s why, even after gaining nearly 50% in 2024, Dollarama remains one of the top TSX stocks to buy right now. It can help to shore up your portfolio if risk and uncertainty increases. However, it can also continue to rally if the economic landscape improves.

In fact, for Dollarama’s fiscal 2025 year, analysts predict another 8.9% jump in sales and a more than 14% increase in net income.

So, if you’ve got cash that you’re looking to put to work, there’s no question Dollarama is one of the top TSX stocks to buy now.

A micro-cap stock with significant growth potential

In addition to Dollarama, another one of the top TSX stocks to buy right now is VerticalScope Holdings (TSX: FORA).

VerticalScope is a unique stock with a market cap of just $190 million, which has gained over 116% in 2024 as it continues to offer significant growth potential.

This impressive performance shows exactly why it has so much growth potential, particularly as it capitalizes on the increasing value of niche digital communities.

VerticalScope operates a diverse portfolio of online communities that cater to enthusiasts in specific niches, such as automotive enthusiasts, fitness buffs, DIY hobbyists, and more.

Therefore, by focusing on these targeted audiences, VerticalScope effectively leverages the unique advantages of niche markets to attract advertising dollars.

Advertisers value niche platforms for their precise targeting capabilities, allowing them to connect directly with engaged and relevant audiences. This results in higher ad effectiveness, making VerticalScope an appealing partner for advertisers and a compelling growth opportunity for investors.

Therefore, it’s no surprise that analysts expect VerticalScope‘s revenue to jump over 13% in 2024 and another 10% in 2025. It’s also no surprise that the average analyst target price sits at $14.25, a roughly 40% premium to where shares are trading today.

So, if you’re willing to take on a little more risk and are looking for a high-quality investment with significant growth potential, there’s no question VerticalScope is one of the top TSX stocks to buy right now.