3 Top Canadian Stocks to Buy This Month
The Motley Fool
Published Oct 25, 2021 20:30
Updated Oct 25, 2021 20:45
3 Top Canadian Stocks to Buy This Month
Despite the concerns over rising inflation, which reached an 18-year high of 4.4% in September, the Canadian equity markets have continued their upward momentum, with the S&P/TSX Composite Index rising over 21% higher for this year. The expectation of improving corporate earnings appears to have driven the markets higher. Amid increasing investors’ confidence, here are three top Canadian stocks that you can buy right now.
Canadian Natural Resources Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) has witnessed a strong buying this year, with its stock price rising by over 70%. Higher oil prices, strong financials, and raising of guidance by the management appear to have increased investors’ confidence, driving its stock price higher. Meanwhile, I expect the uptrend to continue, as oil prices could remain elevated in the near to medium term. Bank of America (NYSE:BAC) Global Research expects oil prices to reach $100 per barrel in case of a severe winter.
Canadian Natural Resources has also increased its capital budget for this year by $275 million to $3.48 billion. Along with these investments, strong operating performance and higher oil prices could boost the company’s financials and stock prices in the coming quarters. The company also pays a quarterly dividend of $0.47 per share, with its forward yield at 3.56%. Despite its healthy growth prospects, the company currently trades at an attractive forward price-to-earnings multiple of 8.2.
Lightspeed Commerce Second on my list is Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD), which has witnessed a steep correction of over 28% from its recent highs. A recent report from Spruce Point Capital Management, which accused Lightspeed of fudging numbers, had made investors nervous, thus leading to a steep fall. However, Lightspeed has denied any wrongdoing and has termed the report as misleading and intended to benefit Spruce Point.
Meanwhile, the correction could be an excellent buying opportunity for long-term investors. The growing adoption of the omnichannel selling model and the rise in online shopping provides long-term growth potential for the company. Also, the company has continued with its strategic acquisitions by acquiring ShopKeep, NuORDER, Vend, and Ecwid over the previous 12 months. A growing customer base, new product launches, geographical expansion, and higher revenue from recurring sources could continue to boost its financials in the coming quarters.
Aurora Cannabis Third on my list is Aurora Cannabis (TSX:ACB)(NYSE:ACB), which has appreciated by over 8% since reporting its fourth-quarter performance on September 27. Although its top line missed expectations, the company’s net losses and cash burns declined during the quarter. Further, the company also announced that its business transformation plan is on track to deliver $60-$80 million of annual savings, thus providing a clear pathway to achieve positive adjusted EBITDA.
Get The App
Meanwhile, Aurora Cannabis has acquired a leadership position in the Canadian medical space with a market share of around 20%. With the segment generating over 60% of gross margin, the company has allocated more resources to drive growth. It is working on strengthening its position in the European Union, given its significant market potential. The company also focuses on launching premium and higher-THC content products to improve its sales in the Canadian recreational space. So, given its growth prospects, cost-cutting initiatives, and expanding addressable market, I am bullish on Aurora Cannabis .
The post 3 Top Canadian Stocks to Buy This Month appeared first on The Motley Fool Canada.
The Motley Fool owns shares of and recommends Lightspeed POS Inc. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.
This Article Was First Published on The Motley Fool
Written By: The Motley Fool
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.