LSPD:CC - Bull Market Buys: 3 Magnificent Stocks to Own for the Long Run

2024-05-29 15:30:00 ET

We’re not there yet, but a bull market will be happening pretty much anytime now. Market sentiment is already improving, with markets around the world climbing past all-time highs once more. That includes here in Canada as well.

This is actually why now could be an excellent time to buy magnificent stocks due for a bounce back in the long run. With that in mind, let’s look at three to consider on the TSX today.

CNR stock

First, we have Canadian National Railway ( TSX:CNR ). CNR stock is well-positioned to potentially perform well in a bull market for several reasons. As one of the largest railroad companies in North America, CNR operates an extensive network of railways spanning Canada and the United States. Rail transportation is a critical component of the economy, facilitating the movement of goods and raw materials across vast distances.

During periods of economic expansion, there tends to be increased demand for transportation services, benefiting companies like CNR. What’s more, CNR stock has a reputation for operational excellence and efficiency in managing its rail network. By continuously investing in infrastructure, technology, and process improvements, CNR aims to enhance its service reliability, capacity, and safety standards, which can be appealing to customers during periods of economic growth.

Finally, CNR has historically demonstrated strong financial performance, with consistent revenue growth, healthy profit margins, and robust cash flows. Add in that CNR stock has a track record of paying dividends to its shareholders, and the stability of its dividend payments may appeal to investors seeking income during a bull market.

Lightspeed

Then we have Lightspeed Commerce ( TSX:LSPD ), which has already seen some gains underway. Lightspeed stock operates on a subscription-based SaaS model, which provides recurring revenue streams and predictable cash flows. During a bull market, investors often favour companies with subscription-based business models due to their resilience and ability to generate steady revenue growth over time.

Furthermore, Lightspeed stock has been expanding its market presence globally, targeting new geographic regions and industry verticals. This expansion strategy allows Lightspeed to diversify its revenue streams and tap into new growth opportunities, which can be particularly beneficial during a bull market when businesses are looking to expand and invest in technology solutions.

Finally, Lightspeed stock has formed strategic partnerships and integrations with other technology providers, payment processors, and industry-specific platforms — most recently with Uber Technologies . These partnerships enhance Lightspeed’s value proposition for customers and can drive adoption of its platform, especially during periods of economic growth when businesses are more willing to invest in technology solutions to drive efficiency and growth.

Canadian Tire

Lastly, we have Canadian Tire ( TSX:CTC.A ), which has been struggling as of late, but not for long. Canadian Tire stock operates in the consumer discretionary sector, with a diversified business portfolio that includes retail, automotive, sports, leisure, and home products. During a bull market, consumer confidence tends to be high, leading to increased consumer spending on discretionary items such as automotive accessories, home improvement products, sporting goods, and leisure equipment.

And don’t forget its brand recognition. Canadian Tire owns and operates several well-known retail banners, including Canadian Tire, Mark’s, SportChek, and Atmosphere. Each of these banners targets specific consumer segments and product categories, allowing Canadian Tire to diversify its revenue streams and capitalize on different market trends and consumer preferences.

Finally, Canadian Tire stock has a track record of delivering solid financial performance, with consistent revenue growth and profitability. The company’s ability to generate strong cash flows and return capital to shareholders through dividends and share buybacks may attract investors seeking stable and reliable investments during a bull market.

The post Bull Market Buys: 3 Magnificent Stocks to Own for the Long Run appeared first on The Motley Fool Canada .

Fool contributor Amy Legate-Wolfe has positions in Lightspeed Commerce. The Motley Fool recommends Canadian National Railway, Lightspeed Commerce, and Uber Technologies. The Motley Fool has a disclosure policy .

2024