TOY:CC - Millennials: The 3 Stocks I'd Buy With $3000
2023-05-31 17:45:00 ET
Millennials may have it rougher than their parents, but sound investing in a TFSA (Tax-Free Savings Account) over the long haul can help even the playing field a bit. Indeed, nobody wants to be born before a slew of recessions and a pandemic.
In any case, the millennial generation remains incredibly resilient. And though there may be yet another recession ahead over the next 12 months, I still think it’s a good idea to stick with a long-term game plan. Though millennials have been through a lot, they’re still relatively young. Young investors have time on their side. And they can afford to make mistakes here and there on the road to retirement.
In this piece, we’ll have a look at three TSX stocks that look to have great growth runways that can keep millennial investors out of trouble. Sure, the allure of momentum stocks will always draw crowds of young people in. However, at the end of the day, it’s boring investing that tends to yield results over the course of many years.
Kinaxis
Kinaxis ( TSX:KXS ) is a $5.2 billion company that develops supply-chain software solutions. The stock has been a wild ride over the last three years, hitting a high of around $230 before plunging to around $130. Today, shares are on the road to recovery, now down 20% from highs that could be hit as soon as this year.
Previously, Chief Executive Officer John Sicard noted his firm’s excitement over 2023. Still, he’s “even more excited about ’24, ’25, and ’26.” Undoubtedly, Kinaxis is a decent play over the medium term. But it’s one that may be best held over the next three years or more.
You see, tech stories take some time to unfold. At 10.4 times price to sales, KXS stock isn’t a deep-value play by any means. That said, it does provide an intriguing service that could find itself in higher demand once the coming recession ends.
Telus
Telus ( TSX:T ) is a less-risky play than Kinaxis. Shares of the telecom are a dividend dynamo, with shares yielding just north of 5.5%. At around 25.68 times trailing price to earnings, though, the stock seems a tad richly valued, even as it sags to new 52-week lows of around $26.
It’s been a painful slump for Telus, with the stock in the middle of a rough bear market (down nearly 24% from the top). As the Canadian telecom industry’s competitive landscape changes, only time will tell how growth and margins of firms like Telus are affected.
Regardless, I’m confident in the company’s abilities to grow its 5G network while keeping customers aboard. Though a recession could send the stock back below $25 over the nearer term, I’d not be afraid to be a buyer of weakness.
Spin Master
Last but not least, we have toymaker Spin Master ( TSX:TOY ), which suffered a 4.2% hit on Tuesday’s session. The company seems ready to move on from an underwhelming recent quarter that saw swelling inventories.
A recession could weigh further, but it seems like a shallow recession has already worked its way into the share price, with the stock now down 32% from its 52-week highs and 42% from all-time highs. It’s a brutal slump for Spin but with a strong brand lineup, a stable balance sheet, and a mere 12.4 times trailing price-to-earnings multiple, I’d not be afraid to be a buyer of the dip.
The post Millennials: The 3 Stocks I’d Buy With $3,000 appeared first on The Motley Fool Canada .
Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Spin Master. The Motley Fool recommends Kinaxis and TELUS. The Motley Fool has a disclosure policy .
2023