GEI:CC - 2 of the Best Canadian Stocks to Buy Now (According to Analysts)
2023-07-01 09:30:00 ET
Analyst recommendations continue to flood in around earnings, yet it can be quite a lot of information for investors to take in. However, this week analysts made recommendation for two stocks that could be some of the best Canadian stocks to buy now. So, let’s look at why investors may want to consider adding Supremex ( TSX:SXP ) and Gibson Energy ( TSX:GEI ) to their buy list.
Supremex
Envelope and packaging manufacturer Supremex stock could see some “softness” in the year to come, according to Canaccord Genuity analyst Matthew Lee. However, the analyst didn’t think this was enough for investors to ignore the stock. That’s why it may be one of the best Canadian stocks to buy right now.
Part of this comes to the company holding 90% of the Canadian market share of the envelope business. In the near term, there may not be the estimate-beating performance investors have seen in the past as customer inventory levels stabilize and acquisitions are integrated. However, the company has a long track record of strong performance.
This comes down to Supremex stock’s “substantial cash flow generation, organic growth opportunity in packaging, and [mergers & acquisitions] track record,” the analyst said. This should continue to see growth for investors as it continues to expand beyond envelopes and include packaging on specialized products.
Supremex stock remains an incredible deal compared to peers, trading at 4.4 times earnings , well below the average price-to-earnings ratio around 20 as of writing. Shares remain up 50% in the last year, though have dropped back 29% since February after missing estimates. Yet again, as Supremex stock continues to shift more in packaging, this could mean a large upside for new investors.
Gibson Energy
Speaking of acquisitions and growth, Gibson Energy was also a new buy recommendation from analysts after closing its $403 million bought deal offering. This would be used to fund the US$1.1 billion acquisition of South Texas Gateway Terminal. And it could lead it to being one of the best Canadian stocks to buy right now.
The oil infrastructure company was moved to a “buy” from multiple analysts as this new move could see more growth, yet shares are down 15% in the last year. This provides investors with a strong reason to jump on Gibson stock right now.
The South Texas Gateway Terminal remains the second-largest crude export facility in the United States, according to one analyst. It boasts 8.6 million barrels of oil storage capacity, and one million barrels of oil per day of exporting capacity. This provides Gibson stock with an enormous new opportunity for growth, leading to analysts raising estimates.
Yet with shares down, Gibson stock has plenty going for it. It trades at 11.3 times earnings as of writing, which is well below its five-year average of 22.34 times earnings. And with a 7.55% dividend yield to consider as well, it’s certainly a stellar company that analysts remain confident about in the near future.
Bottom line
Gibson stock and Supremex stock may not be the most exciting companies on the market, but that may be just the reason to consider the pair. Each fell on hard times during the last year, and now it looks like there may be a turnaround. Whether it’s through expansion or acquisitions, both Gibson stock and Supremex stock look like some of the best Canadian stocks to buy right now.
The post 2 of the Best Canadian Stocks to Buy Now (According to Analysts) appeared first on The Motley Fool Canada .
Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Supremex. The Motley Fool has a disclosure policy .
2023