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These are the Best Canadian Stocks to Buy and Hold Right Now

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Investing in stocks can be a great way to build your retirement nest egg. However, if you don’t know what you’re doing, it can also be an unfortunate way to throw away your hard-earned money. Just like you wouldn’t buy a home on impulse because a bad decision could cost you in a big way, you shouldn’t buy stocks without doing extensive research first.

See also: 10 top-searched jobs in Canada, ranked by salary.

If you’re considering investing in a company, you need to first read their financial reports and look at factors like how they make their money, how they’re managing the income they make, what risks they potentially face, their market capitalization (or market cap for short), their net income, price-to-earnings (or P/E ratio), return on equity, their values as a company and who’s in charge.

It’s also always a good idea to get expert advice. That said, let’s look at some of the best stocks to buy right now in Canada, especially if you’re a beginner.

Related: A beginner’s guide for how to start investing in Canada.

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The best stocks to buy right now: Shopify

Lockdowns during the pandemic meant that shoppers went the online route like never before, making e-commerce some of the best stocks to buy right now. E-commerce platform Shopify provides a space where more than 1,700,000 businesses in around 175 countries can sell their products online.

Shopify has become Canada’s largest publicly traded company by market cap — $190.1 in September 2021 — and continues to grow. In 2020, it had revenue of $2.93 billion and a net income of $319 million. While this isn’t nearly as much as Amazon makes, Shopify doesn’t become embroiled in controversy nearly as often either, which means its stock price isn’t too volatile.

See also: 20 companies you didn’t realize were Canadian.

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The best stocks to buy right now: Royal Bank of Canada

Bank stocks are generally considered relatively safe to invest in if you’re looking for long-term investments. Banks are subject to strict regulation, which helps keep stock prices relatively steady, mitigating the risks associated with falling interest rates and loan defaults. RBC has some of the best Canadian stocks to buy and hold because the bank is doing so well.

Royal Bank of Canada — or RBC, as most of us call it — is not only Canada’s largest financial institution but also its second largest company by market cap, which was $146.4 billion in September this year. In 2020, RBC had revenue of $37.36 million and a net income of $9.03 million. Having been around since 1864, RBC got its current name in 1901 and while it has been involved in a few controversies over the years, it also has a reputation for being one of the companies with great customer service in Canada.

Related: 10 jobs with the highest burnout rates (and 5 of the lowest).

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The best stocks to buy right now: BCE

It’s always a good idea to invest in companies that provide essential services: their stocks tend to grow steadily in value over the long term. One essential service nobody can do without, especially now that so many of us have remote and work-from-home jobs, is telecommunications, including mobile services and internet.

BCE is the holding company that owns Bell Canada, the country’s largest telecom provider. It’s among the country’s top 20 largest companies by market cap: $47.25 billion in September this year. It had revenue of $18.97 billion and a net income of $2.52 billion in 2020. BCE stocks are unlikely to see a sudden, huge drop in value. On the contrary, their value has been surging because of the growth potential of 5G.

You may also like: How to start managing your money after landing your first job.

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The best stocks to buy right now: Descartes Systems Group

Global supply chain problems have highlighted just how important good logistics and supply chain management are. Descartes Systems Group is a Waterloo, Ont.-based tech company that provides logistics and supply chain management software to help get goods from the producer to the store shelves or to your door.

In September 2021, the company had a market cap of $6.6 billion. In 2020, its revenue was $349 million and its net income $52 million. Descartes stocks haven’t shown spectacular surges in value but with small rises and dips, their value has grown steadily in the long term: an upwards trend likely to continue.

Related: These cities are candidates to become Canada’s next tech hub.

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The best stocks to buy right now: Kinaxis

Another good bet in the supply chain field is Kinaxis, an Ottawa-based company that specializes in supply chain management and sales and operations planning software. Kinaxis was founded in 1984 as Cadence Computer Corporation and did supply chain analysis. It got its current name in 2005, when the focus shifted to selling its software on a subscription basis.

Kinaxis had a market cap of $4.4 billion in September 2021. The company’s revenue in 2020 was $224 million and its net income was $14 million. While these numbers may not seem mind-boggling, analysts say that Kinaxis has great long-term potential. If you’re looking for a company whose values align with yours, Kinaxis is a good bet too: it reached carbon neutrality last year.

See also: 5 pro-tips to get your life together in your 20s.

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The best stocks to buy right now: Northland Power

Speaking of carbon neutrality: energy is another essential and its future lies in renewables like wind, solar and natural gas. The green energy industry is not only where you’ll find some of the most in-demand jobs for 2025 and beyond but also where you can expect to see the value of your investment increase as more people make the switch.

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Toronto-based Northland Power is a leader in the industry. The company has power plants in Ontario, Quebec and Saskatchewan as well as in Germany, The Netherlands and Colombia, using onshore and offshore wind, the sun, biomass and natural gas as energy sources. In September this year, Northland Power had a market cap of $7.44 billion. Its revenue last year was $1.63 billion and its net income was $276 million.

Related: 20 things successful women do every single day.

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The best stocks to buy right now: Air Canada

If you’re only starting out as an investor and you don’t have a ton of money, it’s tempting to buy cheap stocks. However, you need to be certain that those stocks will increase in value. Because the pandemic pretty much grounded the airline’s passenger fleet in 2020, Air Canada operated at a loss, with revenue of $4.62 billion and a net income of –$3.76 billion.

With more people getting vaccinated and travel restrictions easing around the world, though, passengers are slowly returning to Canada’s flagship carrier. In addition, the airline has expanded its cargo network, which isn’t as sensitive to pandemics. So, while they’re cheap at the moment, the value of Air Canada stocks should increase significantly in the long term, making them some of the best stocks to buy right now Canada. In September this year, the airline had a market cap of $6.92 billion.

Related: Here’s where fully vaccinated Canadians can go right now.

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The best stocks to buy right now: WELL Health Technologies

Healthcare is never a bad investment to make and since the pandemic started, WELL Health Technologies has seen rapid growth since it went public on the Toronto Stock Exchange in January 2020. One of the main reasons for this has been the move to telehealth as family physicians’ offices closed during lockdown and people didn’t want to go to the emergency department for common health concerns. WELL Health Technologies is a leader in the field, also owning and operating outpatient health clinics across Canada and the United States.

In September this year, the company had a market cap of $1.28 billion. Its revenue in 2020 was $40 million but it operated at a loss, with a net income of –$3 million. However, WELL Health Technologies has also diversified into clinical database management, billing, digital apps, cybersecurity, and the like and has expanded through several mergers and acquisitions this year.

Related: The best careers worth going back to school for.

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The best stocks to buy right now: Magna International

Covid-19 has changed many things about the way we live and work. For example, a lot people have decided to forego public transit and invest in their first cars instead so that they could maintain social distancing. This has meant an increase in car sales — as long as there was inventory.

The shortage of supply in the automotive industry at the moment is due to the global supply chain crisis. As soon as this is resolved, car sales should increase again and as long as people buy cars, there will be a need for car parts.

Magna International is North America’s largest manufacturer of automobile parts and is one of Canada’s top 30 largest companies by market cap: $23.72 billion in September 2021. In 2020, Magna’s revenue was $39.43 billion and their net income was $1.76 billion.

Related: These are the best cars in Canada for first-time owners in 2021.

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The best stocks to buy right now: Hive Blockchain Technologies

A cryptocurrency like Bitcoin is highly volatile but can give you incredible short-term yields. Unfortunately, it’s also easy to get scammed if you don’t know what you’re doing. Hive Blockchain Technologies, however, allows you to invest in cryptocurrency in the highly regulated stock market, reducing the risk for you.

The company had a market cap of $1.25 billion in September this year. In 2020, revenue was $29 million and net income –$2 million. If you don’t like risk, this isn’t one of the best Canadian stocks to buy. However, if you want to take the chance of winning big, you may want to invest a small amount in cryptocurrency through Hive.

You might also like: All your personal finance FAQs, answered.



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