It’s completely understandable for investors to be riding a rollercoaster of emotions right now. With all of the short-term uncertainty in the stock market today, it begs the question if now is a smart time to invest.
In the short term, at least for investors’ peace of mind, it might be best to sit patiently on the sidelines. It’s anybody’s guess as to how the S&P/TSX Composite Index will fare in the coming weeks and months. The same can certainly be said about U.S.-based indices as well.
But for those with long-term time horizons, volatile market periods provide some of the best buying opportunities you’ll come across. Now could be an excellent time for you to pull the trigger on a company that’s on your watch list.
With that in mind, I’ve reviewed two top Canadian stocks that should be on your radar. Both picks have a proven track record, and I don’t see that changing anytime soon.
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Shopify
Shopify (TSX:SHOP) is fresh off an impressive quarterly report, which the market reacted very positively toward.
Shares of Shopify are up close to 20% year to date and more than 50% over the past 12 months. Even so, the growth stock continues to trade below all-time highs, which were last set in late 2021.
Quarterly revenue growth came in at 31%. Management also forecasted a growth rate in the mid-20s for the upcoming quarter, which was in line with analyst’s expectations.
Shopify continues to see growth in many areas of the business. Two notable areas are the company’s continued international expansion and its growth in enterprise-level clients.
Those two areas are key reasons why I believe in Shopify’s ability to continue driving double-digit revenue growth rates for years to come.
At its current valuation of a forward price-to-earnings (P/E) ratio of 80, Shopify is certainly not a cheap stock. That being said, it hasn’t really ever been a cheap stock, nor would I expect it to be one soon.
If you’re in it for the long haul and willing to add to your position over time, now’s as good a time as any to invest in this tech stock.
Brookfield
In comparison to Shopify, there’s far less to get excited about with Brookfield (TSX:BN). That being said, there’s nothing wrong with being boring when it comes to investing.
Brookfield is a $130 billion global asset manager. While the stock may not be able to compete with Shopify’s growth rates, it is second to none when it comes to diversification.
The asset management company has investments not only spread across the globe but industries too. With focuses on real estate, renewable energy, and infrastructure, to name a few, you’re sure to add some diversification to your portfolio with this company.
What’s impressive about Brookfield is that the company’s diversified portfolio hasn’t prevented it from being a market-beater in recent years. Excluding dividends, shares are up 75% over the past five years, compared to the broader Canadian market’s return of 40%.
If you’ve got some cash to spare but are unsure of which stock to invest in, you cannot go wrong with Brookfield.
