The Canadian economy is booming, and the markets are poised to provide a handsome return for the patient investor. There are several great Canadian stocks to buy right now for investors looking to play this trend. The way Canadians invest has also changed dramatically over the last few years.
With the rise of Robo-advisors and other online services, investors now have more options than ever before to help them grow their money without needing to do any work themselves.
The following stocks have all been performing well recently and should be worth your consideration. Note that due to the Canadian nature of these stocks, all prices are in CAD.
Perhaps the biggest name on this list in recent years, Shopify is an e-commerce company that provides online stores for merchants. It’s also Canada’s most giant unicorn, meaning the company has a valuation of over $1 billion.
Shopify’s latest quarterly results valued the company at $1.119B and showed an increase in revenue of 56.71% year over year, which was well beyond analyst expectations. As more and more people start to make purchases online, Shopify’s platform is becoming more valuable, which means the company should continue its strong performance. It’s also starting to test its international expansion in places like Germany, France, and Japan.
Shopify stocks are getting expensive from a technical standpoint, being valued at just under $1900 per share. Get yours before it’s too late! With an increase of over 3 300% in the last five years, Shopify has remained an excellent stock to buy in Canada right now.
Royal Bank of Canada (TSE:RY)
Royal Bank of Canada is the largest bank in the country, and it’s also one of the most well-run. The bank has solid fundamentals in the United States, with RBC Capital Markets enjoying an enviable position as a top investment bank.
RBC’s stock is currently trading at around $129 per share after steadily growing all year. The stock has performed well recently following some positive news, but investors should exercise caution before committing any new capital here. The company is trading at a P/E ratio near 13, which is consistent with the market average.
RBC has been buying back its shares, which has helped make up for weak demand in recent quarters. While RBC certainly deserves to be on this list of best Canadian stocks to buy in 2021, investors would be wise not to chase the stock too aggressively.
Canadian National Railway (TSE:CNR)
Another great Canadian company is the Canadian National Railway, which operates one of the largest rail networks in North America. The company’s most recent quarterly results showed strong overall results despite weak coal shipments holding back some of its gains over the previous year.
CNI is currently trading near $150 per share, but it remains one of the cheapest rail companies in North America. While the stock has suffered some declines this year due to concerns about the pandemic, investors should watch Canadian National Railway for a good entry point over the coming months.
Alimentation Couche-Tard Inc. (TSE:ATD.B)
Alimentation Couche-Tard is a major convenience store operator in Canada and North America, which has seen recent success thanks to its acquisition of CST Brands in 2017 for $4.4 billion. Since that deal was announced, the company’s stock has been up more than 55%, but shares are still trading at a reasonable valuation. Analysts expect strong financial results for Couche-Tard over the coming years as it continues to expand across North America.
Couche-Tard is currently trading at around $50 per share after hitting an all-time high earlier this year. The stock has performed well recently, but it’s difficult to say whether or not that momentum will continue over the coming months. Investors would need to do more research on the company before committing new capital here, but this is one of Canada’s best stocks to buy in 2021.
Sun Life Financial Inc. (TSE:SLF)
Sun Life Financial is one of Canada’s largest financial services companies and has seen impressive growth over the last few years, thanks to strong performances in its investment portfolio. Sun Life’s stock is currently near $65 per share after hitting a new high of $67 this year. Some investors may be wary about investing in SLF because of its P/E ratio near 11, but this is a stock to keep an eye on over the next few years.
Thanks to its relatively cheap valuation and strong growth potential, Sun Life Financial is a safe and stable choice for anyone. The company continues to be one of the most successful financial services providers in the country, and it should continue growing in the coming years.
Boralex Inc. (TSE:BLX)
Another Canadian stock to consider is Boralex, which focuses on renewable energy projects across Canada and abroad. Thanks to its futuristic solar energy, hydroelectricity, and wind power projects, the company has seen impressive growth over the last several years.
Boralex’s stock hit an all-time high earlier this year and has shown signs of weakness recently after a brutal quarterly report. However, this dip comes after a considerable spike, so it remains one of the best Canadian stocks to buy in 2021, thanks to its growth potential as the global renewable energy market becomes more critical over the coming years.
Boralex is currently trading near $38 per share as investors weigh recent news about the company. While it remains a risky investment, this is one of Canada’s top stocks to buy in 2021 because of its excellent long-term prospects and market growth.
You can read our article about investing in renewable energy on our blog.
Algonquin Power and Utilities Corp. (TSE:AQN)
Algonquin Power and Utilities is a Canadian energy infrastructure company with a diverse network of power generation assets across North America. Algonquin has been a leader in the renewable space, and it acquired a wind power facility from General Electric in late 2015. The company’s stock has been weak in recent months, but shares remain reasonably priced for this industry thanks to its strong growth potential over the next few years. Clean energy is one of the Canadian government’s top priorities at the moment, so you can expect this company to keep growing.
Algonquin is currently trading near $15 per share after hitting an all-time high ($17) earlier this year. With a P/E ratio of roughly 13, this stock is attractively priced for investors looking to buy in with a long-term mindset. Thanks to its strong growth prospects and value, Algonquin is one of the top Canadian stocks to buy in 2021.
Canadian Stocks Conclusion
These are some of the best Canadian stocks to buy for 2021. While there is no guarantee that any of these companies will perform well over the next few years, they all offer strong growth potential and represent some of Canada’s top businesses. Many of these companies also pay hefty dividends, which provide income for investors looking to supplement their investment portfolio with conservatively valued options.
Before investing your hard-earned cash, be sure to read the rest of our blog for more insight on the stock market and how to support it correctly.