NVEI:CC - My Top 5 Canadian Stocks to Buy Right Now for Massive Returns in a Decade
2023-07-18 18:45:00 ET
The S&P/TSX Composite Index was up 138 points in mid-morning trading on Tuesday, July 18. Some of the top-performing sectors included energy, financials, and base metals. Today, I want to zero in on five Canadian stocks that are worth snatching up, as they are geared up for big growth over the long term. Let’s jump in.
Here’s the first red-hot Canadian stock I’d look to snatch up this summer
TFI International ( TSX:TFII ) is a Montreal-based company that provides transportation and logistics services in the United States, Canada, and Mexico. Shares of this Canadian stock have jumped 10% month over month as of late-morning trading on July 18. The stock is now up 13% so far in 2023.
Investors can expect to see TFI International’s second-quarter (Q2) fiscal 2023 earnings on July 31. This company released its Q1 fiscal 2023 earnings on April 25. Total revenues dipped to $1.85 billion compared to $2.19 billion in the previous year. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. TFI reported adjusted EBITDA of $264 million — down from $330 million in Q1 2022.
Shares of this Canadian stock currently possess a favourable price-to-earnings (P/E) ratio of 13. TFI International offers a quarterly dividend of $0.35 per share. That represents a modest 1.1% yield.
goeasy is on track to continue its impressive growth trajectory
goeasy ( TSX:GSY ) is the second Canadian stock I’d look to snatch up for its growth potential. This Mississauga-based company provides non-prime leasing and lending services under its easyhome, easyfinancial, and LendCare brand segments. Its shares have jumped 10% month over month as of early afternoon trading on July 18. The stock is now up 16% so far in 2023.
In Q1 2023, goeasy saw loan originations increase 29% year over year to $477 million. Meanwhile, it posted revenue growth of 24% to $287 million. This Canadian stock last had an attractive P/E ratio of 12. goeasy offers a quarterly dividend of $0.96 per share, which represents a 3.1% yield.
Why I’m targeting this tech Canadian stock in July
Nuvei ( TSX:NVEI ) is a Montreal-based company that provides payment technology solutions to merchants and partners in North America, Europe, and around the world. Shares of this Canadian stock have surged 26% month over month. The stock has climbed 38% in the year-to-date period.
The payment processing solutions market is geared up to deliver strong growth over the next decade. This Canadian stock has impressive growth potential in a burgeoning market.
The rise of telehealth should spur investors to snatch up this stock
WELL Health Technologies ( TSX:WELL ) is based in Vancouver and operates as a practitioner-focused digital health company. The Canadian stock has dropped 2.8% month over month at the time of this writing. Its shares have surged 71% so far in 2023.
Telehealth is another sector that is set up for impressive growth in the 2020s and beyond. In Q1 2023, WELL Health achieved record revenues of $169 million — up 34% compared to the previous year. Moreover, adjusted EBITDA rose 14% to $26.7 million. Better yet, WELL Health is trading in favourable value territory compared to its industry peers.
One more Canadian stock that can deliver big growth going forward
Aritzia ( TSX:ATZ ) is the fifth and final Canadian stock I’d target for its high growth potential in the second half of July. This Vancouver-based company designs and sells apparel and accessories for women in Canada and the United States. Its shares have plunged 42% in the year-to-date period.
This company released its Q1 2024 earnings on July 11. It posted net revenue growth of 13% to $462 million. Meanwhile, net income and adjusted EBITDA took a hit due to broader macroeconomic factors. This Canadian stock last had a P/E ratio of 18, which puts Aritzia in favourable value territory at the time of this writing.
The post My Top 5 Canadian Stocks to Buy Right Now for Massive Returns in a Decade appeared first on The Motley Fool Canada .
Fool contributor Ambrose O'Callaghan has positions in goeasy and Nuvei. The Motley Fool has positions in and recommends Aritzia and Nuvei. The Motley Fool has a disclosure policy .
2023