When investing for long-term growth, one should focus on stocks with strong fundamentals and significant tailwinds. For instance, companies operating in the artificial intelligence (AI), digital transformation, power, and green energy sectors are witnessing significant tailwinds, which will drive multi-year growth. Against this background, here are the three top Canadian stocks to buy now.
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Canadian Stock #1
Cameco (TSX: CCO) is one of the top Canadian stocks to consider now. Its diverse portfolio across the entire nuclear fuel cycle gives this uranium producer a competitive edge and enables it to meet the higher demand.
Concerns about energy security, the push for electrification, global decarbonization efforts, and surging demand from AI data centres provide a solid foundation for long-term growth. Moreover, Cameco’s low-cost production and favourable pricing environment will enhance its financial performance and support its share price.
In addition, Cameco will also gain from its long-term contracts, planned expansions, and exploration projects. Further, its focus on debt reduction, ongoing investments across the nuclear value chain, and balance sheet position it well to capitalize on growth opportunities.
Canadian Stock #2
Shopify (TSX: SHOP) is a solid long-term stock poised to capitalize on the digital shift. This multi-channel commerce platform provider has been delivering strong financial results fueled by growing gross merchandise and payment volumes. Its solid revenue and operating leverage are driving its operating income and share price.
The company’s focus on innovative product launches, strengthening partnerships with leading social media and payment platforms, and extending its sales and marketing channels will likely attract new merchants and boost revenues. Moreover, Shopify’s integrated platform, unified solutions, and increasing adoption of Shopify Payments and Shopify Capital should continue to fuel growth.
Additionally, Shopify’s transition towards an asset-light business model, ongoing strength in its offline retail and B2B channels, use of AI to optimize operations, and improving operational efficiency will ensure sustainable earnings over the long term. Overall, its growing share in the e-commerce space, expanding merchant base, international expansion, and increasing payment penetration position it well to deliver solid growth.
Canadian Stock #3
Celestica (TSX: CLS) offers electronics manufacturing, hardware platform development, and supply chain solutions. Its shares have skyrocketed, returning over 284% in one year and over 1,239% in five years. This growth reflects strong demand for AI offerings, which has driven its revenue and margins higher.
The momentum in Celestica’s business will continue as it invests in modular AI/ML (machine learning) systems and customizable AI silicon. Moreover, accelerated investments in AI infrastructure will drive its financials.
The strength in its Connectivity & Cloud Solutions (CCS) business, which serves sectors like communications and enterprise (servers and storage), will drive its revenue growth. Further, Celestica’s hardware platform solutions (HPS) business is witnessing robust growth, driven by solid demand for its 400G networking switches. The ramping up of 800G switches also augurs well for future growth.
Additionally, the company expects improvement across aerospace, defence, and industrial markets in 2025, which will likely lead to a rebound in its Advanced Technology Solutions (ATS) business and support overall growth.
