Investing in the stock market with a long-term view can be a great way to build substantial wealth. Stock market fluctuation has a massive impact on share prices, especially in the short term. However, those periods of difficulties smooth out as time passes, letting investors benefit from capital gains when bull market environments come around. Here are a few top picks you should have on your investment radar.
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Shopify
Shopify (TSX: SHOP) was once (and very briefly) the largest TSX stock by market capitalization. The tech bubble bursting brought it down to more reasonable levels. As of this writing, it trades at a 31.2% discount from its 52-week high. Despite the decline in share prices, the underlying business is doing well. The price shock is more due to macroeconomic uncertainty.
The company’s fundamentals remain solid. The number of merchants relying on its platform keeps growing, there is a greater demand for its payment processing services, and the AI-powered improvements to its offerings make it a business well-positioned for long-term success.
Air Canada
Air Canada (TSX: AC) is not an investment for the weak of heart and stomach. The beleaguered Canadian flag-carrying airline has seen much better days. It seems to be one of the few companies that simply had its wings clipped due to the pandemic. The airline sector has significant expenses, and a few years of critically low numbers of commercial flights put the company in a difficult position.
Even in the post-pandemic era, it is contending with higher operating costs, fuel price spikes, and geopolitical tensions. However, the airline is expanding its international routes and its cargo business is doing well. While cost pressures might keep its share prices down, it might only be a matter of time until we see the stock take flight. Investing at current levels might be a good play for those bullish about the airline.
Dollarama
Dollarama (TSX: DOL) is a darling investment for any market cycle. The owner and operator of the largest discount retail store chain in the country, the $47.23 billion market-cap company, offers the perfect solution to consumers during a harsh economic environment. People look to cut costs when times are tough, and Dollarama offers them necessities at lower and fixed price points.
This lets the business do well regardless of economic cycles. As of this writing, its share prices have pulled back by 17.43% from its 52-week high valuations. It might be a good investment to consider for long-term growth.
Fortis
Fortis (TSX: FTS) is a staple in most stock market investment portfolios for all the reliable dividend income it generates for investors. The $39.61 billion market-cap utility holdings company owns and operates several natural gas and electricity utility businesses across Canada, the U.S., and the Caribbean. Its earnings are predictable and virtually guaranteed, thanks to long-term contracts in regulated markets.
Its reliable income has let Fortis grow its quarterly dividends for more than half a century, making it one of the rare few TSX stocks with such an extensive dividend-growth streak. Boasting a 3.28% dividend yield, it can be a good holding to consider.
CES Energy
CES Energy Solutions (TSX: CEU) is a $3.81 billion market-cap company that provides chemical solutions to the energy industry. Oil and gas producers in Canada rely on its products to enhance efficiency, boost output, and protect critical infrastructure in the energy industry.
The stock has seen share prices rise significantly in recent months. As of this writing, it is up by 182.8% in the last 12 months of trading. The rising demand for its products and an asset-light business model, along with greater upstream activity in North America, give it a lengthy growth runway that investors can leverage.
Foolish takeaway
This mix of stocks can be a good place to pick when building a well-balanced self-directed investment portfolio.
