Even as macroeconomic uncertainties and a shaky global trade environment continue to keep investors on their toes, the TSX Composite benchmark is still managing to find its footing with the help of fundamentally strong companies that continue to execute well. As markets feel unpredictable, focusing on stocks with a proven competitive edge and robust business models can make all the difference when deciding where to put your hard-earned money right now.
In this article, I will talk about two of the best Canadian stocks you can buy with $7,000 today, which offer a perfect blend of stability and momentum to keep delivering strong returns for years to come.
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Magna International stock
Magna International (TSX: MG) is a great stock to show why consistency remains valuable for long-term investors. Being one of the world’s largest auto parts suppliers and a long-time partner to major global automakers, its offerings include vehicle body, chassis systems, powertrains, and even complete vehicle assembly.
Following a 52% rally over the last seven months, MG stock is currently trading at $68.90 per share with a market cap of about $19.4 billion. Magna also rewards its loyal investors with quarterly dividends with an attractive annualized yield of about 3.9%.
A big part of the recent gains in the stock market comes from the company’s improving financial performance. Notably, Magna reported US$10.5 billion in sales in the third quarter, which reflected a 2% YoY (year-over-year) increase backed by stronger global light vehicle production and its new program launches. More importantly, its adjusted earnings rose nearly 4% from a year ago to US$1.33 per share, helped by stronger operating results and a lower share count from buybacks.
Encouraged by these strong results, Magna recently updated its full-year 2025 outlook with higher expectations for its sales, adjusted net profit, and adjusted EBIT (earnings before interest and taxes) margin. With ongoing program launches and continued efficiency gains, MG stock looks like one of the best stocks to buy now.
Loblaw stock
With that in mind, let us now move on to Loblaw Companies (TSX: L) –another great stock that continues to post dependable growth despite economic uncertainties. As Canada’s largest food and pharmacy retailer, it operates more than 2,800 locations nationwide.
After climbing more than 35% over the last year, Loblaw stock currently trades at $61.32 per share with a market cap of about $72.5 billion. It also offers a small but reliable quarterly dividend with a yield close to 0.9%.
In the latest quarter ended in September, the company’s revenue rose 4.6% YoY to $19.4 billion, led by higher food retail traffic, larger baskets, and strong performance in its discount banners like No Frills and Maxi. Loblaw’s drug retail business also contributed well, with pharmacy and health care services witnessing healthy demand.
Better shrink control and improved gross profit levels drove its adjusted quarterly earnings up by 8% YoY to $828 million as the company continued adding new stores and pharmacy clinics.
Interestingly, Loblaw’s long-term initiatives mainly focus on expanding its discount presence, upgrading its digital and e-commerce capabilities, and continuing strategic store openings. Given these strong fundamentals, L remains one of the top Canadian stocks to buy for a mix of stability and long-term growth.
