Here Are 5 Top Canadian Stocks to Buy With $1,000

These TSX stocks are offering good value and could deliver solid strong returns in the medium- to long-term horizon.

| More on:

The uneven pace of vaccine distribution and continued volatility in the market could lead to a knee-jerk reaction. However, I would suggest investors stay calm, as there are plenty of good growth investment opportunities in the market. I have zeroed in on five such TSX stocks that are offering good value and could deliver solid strong returns in the medium- to long-term horizon. 

So, if you got $1,000 to invest in stocks, consider buying these five TSX stocks right now.

Air Canada

Air Canada (TSX:AC) might not look in great shape due to the lower air travel demand and COVID-19 restrictions. However, its long-term prospects remain bright, as it has ample liquidity to navigate through the crisis. I expect the company’s operations to improve, as the distribution of the vaccine accelerates and demand picks up the pace. 

I expect Air Canada’s revenues and capacity to improve, while its net cash burn could continue to improve quarter on quarter. Furthermore, the momentum in its air cargo business is likely to support its top line, while expense management could cushion its bottom line. 

Absolute Software 

Absolute Software (TSX:ABST)(NASDAQ:ABST) is another high-growth stock trading cheap. It has delivered stellar returns in the past, and I expect the favourable industry trends and higher spending on cybersecurity threats to support the uptrend in the stock in the coming years. 

The company’s accelerating annual recurring revenues, global expansion, robust product pipeline, and continued customer additions strengthen my bullish case on the stock. Further, a strong balance sheet and low direct competitive activity augur well for future growth. Absolute Software stock is undervalued compared to peers, making it attractive at current levels. 

Cineplex

Like Air Canada, Cineplex (TSX:CGX) stock is another top recovery bet and has all the ingredients to deliver stellar returns once the demand improves. As the year progresses, I expect to see an acceleration in the pace of vaccination, which could give a massive boost to Cineplex’s financial and operating performance. 

I believe Cineplex’s revenues and capacity could improve significantly on return to normalcy. Its stock is trading cheap and offers excellent value at current levels. I believe investors looking for top recovery play must have Cineplex stock on their radar. 

Suncor Energy

Suncor Energy (TSX:SU)(NYSE:SU) stock has marked solid growth in the recent past due to a massive recovery in crude oil prices and improving demand. However, it still trades at a discount compared to its pre-pandemic levels, making it a perfect stock long-term bet. 

I believe the improvement in economic activities, higher oil prices and volumes, and its integrated assets position it well to deliver superior returns in the coming years. Further, favourable product mix and lower cost base should support its earnings and facilitate future dividend payments and buybacks.

Dye & Durham

Dye & Durham (TSX:DND) stock marked astounding growth since it was listed on the exchange, and I expect it to deliver multi-fold returns in the future on the back of its robust financial performance. The momentum in its base business continues, while its strategic capital-allocation plan accelerates its growth rate. 

I believe its broad customer base, growing footprint, and strategic acquisitions are likely to drive its sales and EBITDA at a breakneck pace in the future. Meanwhile, Dye & Durham stock witnessed a sharp selling in the recent past, providing an opportunity for long-term investors to go long. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends CINEPLEX INC.

More on Tech Stocks

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Is OpenText Stock a Buy, Sell, or Hold for 2025?

OpenText stock has fallen in the last few years, but that could mean this top tech stock remains an undervalued…

Read more »

AI microchip
Tech Stocks

Celestica Stock: Buy, Sell, or Hold?

Celestica's stock price has rallied 950% in the last five years. Will the AI boom send it even higher in…

Read more »

data analyze research
Tech Stocks

2 Ridiculously Cheap Growth Stocks to Buy Hand Over Fist in 2024

Well Health Technologies is a cheap growth stock to buy for its record-breaking results, massive revenue growth, and profitability.

Read more »

A worker uses a double monitor computer screen in an office.
Tech Stocks

4 Reasons to Buy Kinaxis Stock Like There’s No Tomorrow

Kinaxis stock has a strong past. But there is even more to look forward to from this top tech stock.

Read more »

The letters AI glowing on a circuit board processor.
Tech Stocks

The Future of AI: Best Canadian Stocks to Buy Now

Here are two of the best AI-focused stocks in Canada that you can consider adding to your portfolio before it’s…

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Tech Stocks

2 TFSA Stocks to Buy Right Now With $7,000

Are you looking for growth stocks that can help you maximize the tax-free withdrawals of the TFSA? This article is…

Read more »

cloud computing
Tech Stocks

3 No-Brainer Tech Stocks to Buy Right Now for Less Than $1,000

Not all tech stocks are the risky investments that many think they are. Which is why we're focusing on the…

Read more »

An analyst uses a computer and dashboard for data business analysis and Data Management System with KPI and metrics connected to the database for technology finance, operations, sales, marketing, and artificial intelligence.
Tech Stocks

Where Will Open Text Stock Be in 5 Years?

OpenText stock is one of the few tech stocks that's been around for decades. But does it have what it…

Read more »