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10 Best TSX Stocks to Buy Right Now

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·9 min read
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In this article, we will take a look at the 10 best TSX stocks to buy right now. You can skip our comprehensive analysis of these stocks and go directly to the 5 Best TSX Stocks to Buy Right Now.

The Canadian stock market has recovered from the COVID-19 pandemic quicker and better than the American counterparts in New York. On May 6, the S&P/TSX Composite Index, the benchmark that represents more than 70% of the total market capitalization on the Toronto Stock Exchange (TSX), closed at 19,310.74 points, up more than 120 points, and hit an intraday high of 19,340.25, just 100 points off a record points total. The hike came the same day as the Dow Jones industrial average hit an all-time high.

However, the Dow was up slightly by a lower points total of 97 to close at 34,230.34. In intraday trading, it had climbed to a record 34,331.20 points. The Canadian market was boosted by growth in the industrial, energy, and technology services sectors. These sectors comprise some of the biggest companies in Canada that are on the rebound trail as the coronavirus vaccine rollout allows for business to resume as normal. Some of these firms are dual-listed on the Canadian and American markets, making them attractive investments for the recovery.

For example, Shopify Inc. (NYSE: SHOP), also listed on TSX, has gained more than 9% over the course of the past week and a half, outperforming the S&P 500 which has been down over the same period. Some of the gain has been attributed to the strong quarterly earnings report of the firm in which it said that sales had doubled when compared to the previous year and now stood at $989 million. Shopify Inc. (NYSE: SHOP) is often described as the ‘entrepreneur-friendly’ alternative to other e-commerce platforms that compete with sellers.

In the energy sector, Enbridge Inc. (NYSE: ENB), a dual-listed firm like Shopify, has also been posting incredible numbers. Enbridge Inc. (NYSE: ENB) posted a profit of $1.9 billion in the quarter ended March 31, compared to the $1.4 billion losses incurred in the same period last year. The operating revenue for the firm during the first three months of 2021 was $12.2 billion, a jump from $12 billion reported in the same period last year. The profit accounted for 94 cents per share, up from a loss of 71 cents per share in the first quarter of 2020.

A surprise recovery story for the post pandemic economy is Magna International Inc. (NYSE: MGA), an auto supplier investing heavily in artificial intelligence and machine learning to power the next generation of cars. Magna International Inc. (NYSE: MGA) stands to benefit from the increased demand for light vehicle parts in the Chinese market as transport returns to the roads gradually after a horrid 2020. In the quarterly results posted earlier this month, the firm reported that global light vehicle production was up 18%, driven by an 87% increase in China.

Apart from Shopify Inc. (NYSE: SHOP) and Enbridge Inc. (NYSE: ENB), some other notable companies listed both in Canada and the US include Suncor Energy Inc. (NYSE: SU) and Pembina Pipeline Corp (NYSE: PBA).

Despite strong growth prospects, there is still a lot of uncertainty in the economy that investors need to navigate before making big decisions. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

best TSX stocks to buy now
best TSX stocks to buy now

Photo by Rachael Annabelle on Unsplash

With this context in mind, here is our list of 10 best TSX stocks to buy right now.

Best TSX Stocks to Buy

10. Goodfood Market Corp. (TSX: FOOD.TO)

Goodfood Market Corp. (TSX: FOOD.TO) is a Montreal-based company that sells grocery and meal kits through an internet platform. It was founded in 2014 and is ranked tenth on our list of 10 best TSX stocks to buy right now. It has more than 280,000 active users. The products that the firm offers include prepared meals, cooked meats and sides, salads and soups, as well as grocery items, among others. Goodfood stock has returned close to 76% to investors over the past twelve months.

On April 7, Goodfood Market Corp. (TSX: FOOD.TO) reported results for the second fiscal quarter, posting a revenue of C$100 million, 71% more than the revenue for the same period last year. Blue Apron Holdings, Inc. (NYSE: APRN), a New York-based firm, works in the same business category as Goodfood. At the end of the fourth quarter of 2020, 8 hedge funds in the database of Insider Monkey held stakes worth $3.2 million in Blue Apron Holdings, Inc. (NYSE: APRN), up from 7 the preceding quarter worth $5.7 million.

9. Kirkland Lake Gold Ltd. (TSX: KL.TO)

Kirkland Lake Gold Ltd. (TSX: KL.TO) is a Toronto-based gold mining company founded in 1988. It is placed ninth on our list of 10 best TSX stocks to buy right now. In addition to Canada, the firm also operates gold mines in Australia. It has a market cap of more than $10 billion and posted more than $2.4 billion in annual revenue in 2020. Kirkland stock has returned close to 7% to investors over the past month as the coronavirus lockdown restrictions ease and business activities resume around the world.

On May 6, Kirkland Lake Gold Ltd. (TSX: KL.TO) declared earnings for the first quarter of 2021, posting more than $550 million in revenue and $0.63 in earnings per share. Competitors for Kirkland in gold mining include Barrick Gold Corporation (NYSE: GOLD). Out of the hedge funds being tracked by Insider Monkey, investment firm First Eagle Investment Management is a leading shareholder in Barrick Gold Corporation (NYSE: GOLD) with 26.8 million shares worth more than $610 million.

8. Lightspeed POS Inc. (TSX: LSPD.TO)

Lightspeed POS Inc. (TSX: LSPD.TO) is a Montreal-based e-commerce software provider founded in 2005. It is ranked eighth on our list of 10 best TSX stocks to buy right now. Lightspeed has offered more than 219% in returns to investors over the past twelve months. The company markets workflow analysis, training, configuration, networking and business services. It is most famous for selling point-of-sale solutions to retailers and restaurants across Canada. It has an accounting services department too.

On March 12, Lightspeed POS Inc. (TSX: LSPD.TO) stock was upgraded to Buy from Market Perform by investment advisory Cormark with a revised price target of C$96, up from C$93. California-based Salesforce.com, Inc. (NYSE: CRM) also offers the same services as Lightspeed. At the end of the fourth quarter of 2020, 97 hedge funds in the database of Insider Monkey held stakes worth $10 billion in Salesforce.com, Inc. (NYSE: CRM), down from 106 the preceding quarter worth $11 billion.

7. Pembina Pipeline Corporation (TSX: PPL.TO)

Pembina Pipeline Corporation (TSX: PPL.TO) is a Calgary-based hydrocarbon transport firm. It was founded in 1954 and is ranked seventh on our list of 10 best TSX stocks to buy right now. Pembina stock has offered more than 41% in returns to investors in the last year. It has a market cap of more than $16 billion and posted more than 4.7 billion in revenue in 2020. Pembina Pipeline Corp (NYSE: PBA) has assets which can transport 3.1 millions of barrels of oil in a single day, and a ground storage capacity of 11 millions of barrels.

Pembina Pipeline Corp (NYSE: PBA) reported earnings for the first quarter of 2021 on May 6, posting more than C$2 billion in revenue, beating market estimates by $360 million. Plains All American Pipeline, L.P. (NASDAQ: PAA), a Texas-based fuel transport firm, is also a big name in the hydrocarbon business. Out of the hedge funds being tracked by Insider Monkey, investment firm Arrowstreet Capital is a leading shareholder in Plains All American Pipeline, L.P. (NASDAQ: PAA) with 5.1 million shares worth more than $42 million.

6. Suncor Energy Inc. (TSX: SU.TO)

Suncor Energy Inc. (TSX: SU.TO) is a Calgary-based firm renowned for producing synthetic crude from oil sands. It is placed sixth on our list of 10 best TSX stocks to buy right now and was founded in 1917. Suncor markets crude oil to Canadian and international businesses. In addition to the oil sands operation, Suncor also explores for oil reserves and has refining capabilities. The company also operates four winds farms in Ontario as climate change considerations compel hydrocarbon firms to shift focus to renewables. The company also trades on the US stock exchange as Suncor Energy Inc. (NYSE: SU)

On May 4, Suncor Energy Inc. (NYSE: SU) announced that it was delaying maintenance at an oil sands plant after a surge in COVID-19 cases in the area.Suncor Energy Inc. (NYSE: SU) stock has returned more than 34% in the past twelve months. Another company that has oil sands operations is Marathon Oil Corporation (NYSE: MRO). At the end of the fourth quarter of 2020, 26 hedge funds in the database of Insider Monkey held stakes worth $317 million in Marathon Oil Corporation (NYSE: MRO), up from 16 the preceding quarter worth $140 million.

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Disclosure: None. 10 Best TSX Stocks to Buy Right Now is originally published on Insider Monkey.