These Are My Top TSX Stocks to Buy Right Now

These TSX stocks are some of the best options out there – not just for now, but for decades.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published January 24, 2025 5:00 pm EST

| More on: AEMCCOCP

When you’re searching for top stocks to buy on the TSX, it’s crucial to consider several factors that can help you identify long-term winners. This includes looking at the company’s financial performance, sector trends, valuation metrics, and future growth prospects. It’s also wise to review recent earnings reports and market updates, as these provide a snapshot of how well the company is managing current challenges and opportunities. With these principles in mind, Cameco (TSX:CCO), Agnico Eagle Mines (TSX:AEM), and Canadian Pacific Kansas City (TSX:CP) are strong contenders for your investment portfolio.

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The stocks

Cameco, a leading uranium producer, has been riding the wave of growing global demand for clean energy. With its stock currently trading around $80.76, Cameco has shown impressive market performance, nearly doubling in value over the past year. The TSX stock reported robust revenue growth of 25.3% year-over-year for its most recent quarter, driven by higher uranium prices and long-term contracts with utilities worldwide. Its forward price/earnings (P/E) ratio of 52.1 indicates some premium valuation. Yet this reflects strong investor confidence in its future, especially as nuclear energy gains traction.

Agnico Eagle Mines specializes in gold production and exploration, a sector that benefits during times of economic uncertainty. Currently trading at $128.43, Agnico reported remarkable quarterly revenue growth of 31.2% and earnings growth of over 224.4% year-over-year. This growth stems from its efficient operations, strategic acquisitions, and robust gold prices. With a forward P/E ratio of 16.4, the TSX stock appears attractively valued compared to its peers, offering a compelling mix of stability and growth potential.

Canadian Pacific Kansas City is a powerhouse in the transportation sector, uniquely positioned after its merger with Kansas City Southern. Trading at $112.67, CP reported a 6.3% year-over-year increase in quarterly revenue. Thus demonstrating resilience amid fluctuating economic conditions. The TSX stock’s efficient cost management has resulted in an operating margin of 37.4%. Its forward P/E ratio of 22.3 reflects strong investor sentiment. And its extensive North American rail network offers significant growth opportunities as trade corridors expand.

What to watch

When evaluating these TSX stocks, it’s essential to look at their dividend profiles. Cameco’s dividend yield is modest at 0.21%, but its potential for capital appreciation makes up for it. Agnico offers a more generous yield of 1.8%, appealing to income-focused investors. CP, though offering a lower yield of 0.68%, is renowned for its dividend growth and reliability.

Sector-specific trends also bolster the case for these stocks. Cameco benefits from the global shift toward sustainable energy. Agnico is buoyed by geopolitical uncertainty and rising gold demand as a hedge against inflation. CP, on the other hand, thrives on the resilience of the transportation sector and its ability to capitalize on cross-border trade between Canada, the U.S., and Mexico.

Recent earnings reports reinforce the strength of these companies. Cameco’s revenue of $2.8 billion and quarterly earnings showcase operational efficiency despite sector volatility. Agnico’s $7.8 billion in trailing 12-month revenue and net income of $1 billion highlight its ability to capitalize on strong gold prices. CP’s $14.5 billion in revenue underscores its critical role in North America’s logistics network.

Foolish takeaway

For future outlooks, Cameco’s growth is tied to the increasing acceptance of nuclear energy as part of the clean energy mix. Agnico is expanding its production footprint and benefiting from gold’s safe-haven status. CP continues to integrate its operations post-merger, enhancing its efficiency and profitability.

Altogether, while investing always involves risks, these three TSX stocks provide strong arguments for inclusion in a diversified portfolio. Their growth trajectories, solid financials, and alignment with global trends make them attractive picks for both growth and stability-oriented investors.