Whether the market is moving up, down or sideways, there’s never any shortage of opportunities to find high-quality Canadian stocks to buy.
However, finding the very best opportunities comes down to focusing on quality. The most successful long-term investments are almost always high-quality businesses with strong fundamentals, competitive advantages, and consistent growth.
But one thing that’s even better than buying great companies is buying them while they’re still undervalued.
That’s why it pays to watch what analysts are saying, especially when there’s widespread agreement. You can’t blindly follow analyst recommendations, but when multiple firms all rate a stock as a buy and their average price targets are well above current levels, it usually means there’s real upside the market hasn’t priced in yet.
With that said, though, analyst ratings are just one piece of the puzzle. You always want to do your own research and make sure you understand how a company makes money before you invest. But when expert sentiment lines up with strong fundamentals and an attractive valuation, it can be a great signal to take a closer look.
So, if you’ve got cash in your portfolio that you’re looking to put to work, here are three high-potential Canadian stocks that analysts overwhelmingly agree are strong buys right now.
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A $260 million small-cap with long-term growth potential
If you’re looking for high-potential Canadian stocks that are trading undervalued today, one of the first companies you’ll want to consider is Sangoma Technologies (TSX: STC).
Sangoma Technologies is a micro-cap stock that offers its customers a mix of communications solutions that businesses rely on.
Because Sangoma is still a relatively small company, right now, just two analysts cover it, but both have awarded the stock with a buy rating. Furthermore, the average analyst price target between them of $11.48 is a 42.1% premium to where Sangoma shares closed trading on Friday.
So, if you’re looking for a high-quality Canadian stock to buy that’s undervalued and has plenty of growth potential, Sangoma is certainly one you’ll want to consider.
One of the very best Canadian growth stocks to buy now
In addition to Sangoma, another high-quality Canadian growth stock to buy now while it’s ultra-cheap is WELL Health Technologies (TSX: WELL).
Although WELL initially made a name for itself as a healthcare tech stock and still owns rapidly growing digital health businesses and apps, WELL has shifted its focus in recent years to acquiring an increasing number of outpatient clinics across Canada.
In fact, going forward, that’s what WELL’s primary focus will be on. Plus, not only has it proven it can acquire clinics at reasonable prices, but it’s also already begun to demonstrate how quickly it can scale costs and improve profitability, which is why it has so much growth potential going forward.
It’s also why it’s not surprising that of the 10 analysts covering WELL, nine are rating it a buy, with just one hold rating. Furthermore, its average analyst target price is sitting at $7.45, a roughly 87.2% premium to Friday’s closing price.
So, if you’re looking for high-quality Canadian stocks to buy now, WELL is certainly a top choice.
A high-potential transportation stock
While WELL and Sangoma both offer significant growth potential, another top-notch Canadian stock to buy that’s trading dirt-cheap in the current environment is Cargojet (TSX: CJT).
Cargojet has a ton of potential because it operates in a niche, high-demand segment of the logistics industry: time-sensitive air cargo.
Furthermore, it has built a dominant position in Canada with long-term contracts, limited competition, and deep operational expertise.
So, although it’s facing short-term macroeconomic headwinds like softer shipping volumes and higher costs, analysts remain bullish because the company has a proven track record of execution, strong relationships with major partners, and a clear runway for growth as e-commerce and next-day delivery continue to expand.
In fact, of the seven analysts covering Cargojet, six are rating the stock a buy, with one hold. On top of that, its average analyst target price of $144.71 is a 54.9% premium to Friday’s closing price.
So, if you’re looking for a high-quality, high-potential Canadian stock to buy now and hold for years to come, Cargojet is undoubtedly one of the best to consider.
