With April ending this week, tax refund season is here, and for many Canadians, that means a little extra cash in their pockets. And while some Canadians like to spend their refunds, one of the best things you can do is invest it — especially in this volatile market environment. It’s the perfect time to take advantage of TSX stocks that are temporarily cheap.
When it comes to buying stocks in this environment, the key for investors is to focus on high-quality businesses with strong fundamentals, long-term growth potential, and the ability to weather any economic storm.
That way, you’re not just buying stocks on the dip because they are cheap, you’re actually putting your money to work in some of the best businesses Canada has to offer.
So, if you’re looking for top TSX stocks to buy in this highly opportune environment, here are three of the best picks Canadian investors can consider today.
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An impressive long-term growth stock
There’s no question that one of the best and most consistent long-term growth stocks Canadian investors can own is Alimentation Couche-Tard (TSX:ATD).
Couche-Tard is one of the most reliable stocks on the TSX, operating over 14,000 gas stations and convenience stores in more than two dozen countries all over the world, giving it considerable geographic diversification and steady cash flow.
What really makes Couche-Tard so attractive, though, is its combination of defensiveness and growth.
Convenience stores sell everyday essentials, so demand stays relatively stable, even when the economy slows down. But at the same time, Couche-Tard has consistently found ways to grow, both organically by optimizing operations and through acquisitions that expand its footprint.
It’s also one of the best capital allocators in Canada. In fact, it has a long track record of making smart, disciplined deals that help scale operations and improve margins.
So, with Couche-Tard currently trading 15% off its 52-week high and analysts expecting another 6% increase in revenue this year, there’s no question it’s one of the best TSX stocks to buy in this environment.
One of the top media stocks on the TSX
In addition to Couche-Tard, another of the very best stocks on the TSX to buy now and hold for years to come is Thomson Reuters (TSX:TRI).
Thomson Reuters provides essential information and software tools for legal, tax, and media professionals all over the world.
However, what makes it one of the best stocks on the TSX is its high-margin business model, sticky customer base, and predictable revenue.
For example, roughly 90% of its revenue comes from subscriptions, and its customers, which include law firms, tax professionals, and corporations, all rely heavily on its products to do their jobs. That gives Thomson Reuters pricing power and reliable recurring income.
Plus, in addition to its defensive nature, Thomson Reuters continues to have plenty of long-term growth potential, especially since it’s been investing heavily in artificial intelligence and workflow automation, positioning itself to benefit as more industries embrace digital tools to boost efficiency.
Therefore, if you’re getting a tax refund this season or just have cash on the sidelines you’re looking to put to work, there’s no question that Thomson Reuters is one of the very best TSX stocks you can buy now and hold for the long haul.
A reliable business with impressive growth potential
Finally, if you’re looking to put your hard-earned capital to work in a stock that offers a blend of growth, value, and long-term upside, Brookfield Corporation (TSX:BN) is tough to beat.
The global asset manager has proven for years it can consistently expand its operations at an impressive pace and has investments in many different essential sectors from infrastructure and real estate to renewable energy and private equity.
What really makes Brookfield attractive in today’s uncertain environment, though, is its valuation.
The stock is currently trading about 20% off its 52-week high and well below its estimated intrinsic value. For example, its average analyst target price is $89.03, a more than 20% premium to where Brookfield trades today.
So, if you’ve got cash you’re looking to put to work and want to find the best companies to buy and hold long-term, there’s no question Brookfield is one of the top TSX stocks Canadians can consider.
