Investing in fundamentally strong stocks that grow steadily while trading at reasonable valuations should allow Canadians to benefit from outsized returns over time. In this article, I have identified two such top Canadian stocks you can buy right now with $2,000.
Source: Getty Images
Is this TSX stock a good buy?
Valued at a market cap of $1.3 billion, Cargojet (TSX:CJT) provides time-sensitive overnight air cargo services. Cargojet operates a domestic air cargo network service between Canadian cities and provides aircraft to customers on an AMCI (aircraft, crew, maintenance, and insurance) basis.
The TSX stock went public in September 2010 and has since returned 1,620% to shareholders, after adjusting for dividends. However, despite these market-beating returns, CJT stock is down 66% from all-time highs, allowing you to buy the dip.
Cargojet posted resilient Q2 results despite global trade uncertainties following what the company called Liberation Day on April 2, which reshaped international commerce.
The Canadian air cargo specialist demonstrated its ability to navigate turbulent markets through strategic partnerships and a diversified business model spanning domestic e-commerce, international ACMI operations, and charter services.
The company’s domestic network delivered strong 14% year-over-year growth in the quarter, driven by robust e-commerce demand across all customers, including Amazon.
Management noted that consumers continue to substitute lower-cost products during economic uncertainty, but overall volumes remain healthy. Charter revenue grew 22%, highlighting the stickiness of newer trade lanes for Canada.
Renewed partnerships
Cargojet secured critical long-term contract extensions with two global logistics giants, and Amazon renewed its air transportation services agreement through March 2029.
DHL extended its strategic partnership through March 2033 with additional options, and the agreement creates a framework that positions Cargojet as first in line for new business opportunities as global economies recover.
Cargojet reported an adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) margin of 33.7%, an increase of 140 basis points compared to Q1.
Analysts tracking the TSX stock forecast revenue to rise from $1 billion in 2024 to $1.2 billion in 2027. In this period, adjusted earnings are forecast to expand from $5.32 per share to $7.48 per share. If the TSX stock is priced at 15 times forward earnings, which is reasonable, it should gain over 35% within the next 18 months.
Is this mining stock a good buy today?
Valued at a market cap of $1.1 billion, Trilogy Metals (TSX:TMQ) stock exploded over 200% on a single day earlier this month, following the White House announcement of a US$35.6 million investment that gives the U.S. government a 10% stake in the Canadian minerals explorer.
The partnership aims to unlock domestic copper and critical mineral supplies in Alaska’s Ambler mining district, home to some of the world’s richest copper-dominant polymetallic deposits.
The Trump administration reversed the Biden-era rejection of the Ambler Road project, a 211-mile industrial road that will provide access to deposits containing copper, cobalt, zinc, lead, gold, and silver.
The move reflects growing concerns about China’s dominance in critical minerals, with Beijing controlling nearly 70% of global rare-earth mining and processing almost 90% of the supply.
Trilogy Metals holds interests in the Upper Kobuk mineral projects covering approximately 448,217 acres in Northwest Alaska. The company emphasized that the federal commitment supports responsible resource development, crucial for energy infrastructure, defence technologies, and manufacturing supply chains, as critical mineral demand grows with the clean energy transition.
While Trilogy Metals is a pre-revenue company, it is forecast to end 2029 with free cash flow of US$416 million. If TMQ stock is priced at 10 times forward earnings, it could surge by 400% over the next four years.
