Yesterday, the Canadian Benchmark Index, the S&P/TSX Composite Index, hitting the 20,000 mark for the first time before closing at 19,976.01, showing a growth of 14.6% for the year. Higher commodity prices, recovery in corporate earnings and gradual reopening of the economy have boosted investor confidence, leading to a rally in equity markets. Amid increasing investor confidence, here are four top Canadian stocks you can buy now for better returns.
Buoyed by recovery in oil prices and solid Q1 performance, Suncor Energy (TSX: SU)(NYSE: SU) This year there has been an increase of 38.4%. Despite the substantial growth, the company is still trading well below its January 2020 levels, while its valuation looks attractive. Its price-to-book and forward price-to-earnings multipliers currently stand at 1.2 and 16.3, respectively.
Meanwhile, oil prices may remain elevated for the rest of this year amid rising demand due to reopening of economies and economic expansion. The company expects its oil production and refinery utilization rates to improve this year, while reducing spending among several cost-cutting initiatives. In addition, the company is reducing its debt levels and rewarding its shareholders through dividends and share buybacks. so i hope Suncor Energy’s share price will continue to rise.
After the sell-off last year, cineplex (TSX: CGX) This year has seen a strong buy, with its share price rising 71.5%. However, the company still trades more than 50% below its January 2020 levels, providing an excellent buying opportunity amid the gradual reopening of the economy. Canadian provinces are planning a phased reopening amid widespread vaccination and falling COVID-19 infections.
The reopening of entertainment venues and movie theaters could improve theatre’s attendance, thus leading to a gradual improvement in its financial position. In addition, the company has taken several cost-cutting initiatives and strengthened its balance sheet by raising additional funds, which is encouraging. Its valuation also looks attractive, with its forward price-to-sales multiple standing at 0.9.
Blackberry (TSX:BB)(NYSE:BB) Had a very volatile first quarter, as it became the target of Reddit users. However, the company has seen strong buying this quarter, with its share price rising 32%. In the meantime, I expect its share price to continue to rise given its high growth prospects.
BlackBerry, which specializes in endpoint security management, could benefit from rising cybersecurity spending. It has recently partnered with ibm To expand its product reach across Canada. The company also provides embedded solutions to automotive companies. Amid the growth in the autonomous vehicle market, the demand for BlackBerry products and services may increase in the coming quarters. In addition, partnering with heroine web services and Baidu It can strengthen its position in the growing electric and autonomous vehicle market.
supported by its solid first quarter performance and acquisition of handicrafts, Saveriya (TSX: SIS) Is trading 32.8% higher for this year. In the meantime, I expect the uptrend to continue. Amid rising population and rising incomes, the demand for accessibility solutions may increase in the coming years, which will benefit the company.
Handicare has four manufacturing facilities in North America, Asia and Europe, while it generates 89% of its revenue from Europe. Therefore, the acquisition could significantly expand Savaria’s distribution network outside North America. In addition, acquisitions can drive product innovation and improve production efficiencies while offering cross-selling opportunities. Hence, the company’s growth prospects look healthy. The company’s valuation also looks attractive, with a forward price-to-earnings multiple of 24.5.
For similar wealth-creation ideas, check out the following report.
Well-known Canadian investor Ian Butler just named 10 stocks for Canadians to buy today. So if you are tired of reading about other people getting rich in the stock market, this might be a good day for you.
Because Motley Fool Canada is offering a full 65% off the list price of its top stock-picking service, plus a full membership fee-back guarantee on what you pay for the service. Just click here to know how you can take advantage of it.
This article represents the opinion of the author, who may disagree with the status of an “official” recommendation of Motley Fool Premium Service or Advisor. We are motley! Questioning an investment thesis – even our own – helps us all to think critically about investing and make decisions that help us become smart, happy, and prosperous, so we can never – Sometimes publishes articles that may not conform to recommendations, rankings or other content.
John McKay, CEO of Whole Foods Market, a subsidiary of Amazon, is a member of The Motley Fool’s board of directors. The Motley Fool owns and recommends shares in Amazon and Baidu. The Motley Fool recommends Blackberry, Blackberry, Cineplex Inc., and Savaria and recommends the following options: long January 2022 $1920 call on Amazon and short January 2022 $1940 call on Amazon. Fool contributor Rajeev Nanjapla has no position in any of the stocks mentioned.
Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of knews.uk and knews.uk does not assume any responsibility or liability for the same.