3 TSX Stocks to Invest $3,000 in Right Now

These TSX stocks will likely gain from improved economic environment and strength in base business.

Despite the rising coronavirus infections, I expect the Canadian stock market to hold firm and trend higher on the back of solid liquidity, lower interest rates, increased economic activities, recovery in consumer demand, and corporate earnings growth. 

With an improving operating environment, I am bullish on three TSX stocks, including Scotiabank (TSX:BNS)(NYSE:BNS), Cargojet (TSX:CJT), and Docebo (TSX:DCBO)(NASDAQ:DCBO). These Canadian corporations continue to perform well, and a favourable industry outlook indicates that shares of these companies could continue to grow in the coming years. 

So, if you have $3,000 to invest, consider buying these shares now. 

Scotiabank

Scotiabank is one of my top picks for both growth and stable dividend income. Notably, the Canadian banking giant has consistently delivered strong profitability, benefitting from its diverse revenue streams, strong credit quality, higher deposit base, and operating leverage. 

While its stock has gained a lot from the pandemic lows, I expect the momentum to sustain. Increased economic activities will likely fuel credit demand, and Scotiabank, with its exposure to the high-growth banking markets, remains well positioned to capitalize on the improving trends. Furthermore, improved efficiency ratio, lower credit provisions, and acceleration in digital banking augur well for future growth.

Thanks to its ability to grow earnings, Scotiabank has consistently rewarded its shareholders with higher dividend payments. It has paid dividends since 1833 and raised it at a CAGR of 6% since 2009. It currently offers a lucrative dividend yield of 4.6%, while its low payout ratio is sustainable in the long run. Also, Scotiabank trades at a lower valuation than peers, making it attractive at current price levels.

Cargojet

Cargojet is another stock that has created significant wealth for its investors and has consistently outperformed the benchmark index. Notably, the pandemic boosted the demand for Cargojet’s services, and, in turn, drove its stock higher. 

Cargojet stock has corrected about 9.9% this year due to the normalization in demand trends. However, I expect the uptrend in its stock to sustain due to the solid momentum in its core business and robust e-commerce demand.

Furthermore, this air cargo company’s next-day delivery capabilities and a solid domestic network add to its competitive advantage and will likely fuel growth by positioning it well to capitalize on the higher demand e-commerce demand. Meanwhile, its long-term customer contracts, fuel-efficient fleet, high client-retention rate, and international growth opportunities bode well for future growth. 

Docebo

Docebo is another stock that has made its investors very rich, as its stock has headed north since listing on the TSX. Notably, Docebo’s triple-digit returns in just two years are due to its stellar financial performance led by solid annual recurring revenues and growth in customer base. 

Despite the recent growth in its price and the expected normalization in demand in the post-pandemic world, shares of this corporate e-learning platform provider could continue to rise higher. The ongoing shift towards digital platforms and the growing importance of corporate learning provide a solid base for growth.

I expect the continued momentum in OEM sales, higher average order value, large addressable market, customer acquisitions, and high retention rate to drive its financials and, in turn, its stock. Meanwhile, improved productivity and operating efficiency will likely cushion its profits. 

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 owns shares of and recommends CARGOJET INC. and Docebo Inc. The Motley Fool recommends BANK OF NOVA SCOTIA.

More on Coronavirus

A airplane sits on a runway.
Coronavirus

3 Fresh Stocks I’m Likely Buying in 2025

I am likely buying Air Canada (TSX:AC) stock in 2025.

Read more »

RRSP Canadian Registered Retirement Savings Plan concept
Coronavirus

Canadian RRSP Stocks to Buy Now for Retirement

Alimentation Couche-Tard Inc (TSX:ATD) is a quality retirement stock.

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Coronavirus

Retirees: What Rising Inflation Means for Your CPP Payments

If you aren't getting enough CPP, you can consider investing in stocks and ETFs. Canadian National Railway (TSX:CNR) is one…

Read more »

Coronavirus

Air Canada Stock Is Starting to Get Ridiculously Oversold

Air Canada (TSX:AC) has been beaten down to absurd lows.

Read more »

Coronavirus

Should You Buy Air Canada Stock While it’s Below $18?

Air Canada (TSX:AC) stock is below $18. Should you invest?

Read more »

Illustration of data, cloud computing and microchips
Stocks for Beginners

3 Canadian Stocks That Could Still Double in 2024

These three Canadians stocks have been huge winners already in 2024, but still have room to double again in the…

Read more »

Aircraft Mechanic checking jet engine of the airplane
Coronavirus

Can Air Canada Stock Recover in 2024?

Air Canada (TSX:AC) stock remains close to its COVID-19 era lows, even though its business has recovered.

Read more »

A airplane sits on a runway.
Coronavirus

3 Things to Know About Air Canada Stock Before You Buy

Air Canada stock continues to hover below $20 despite the sharp rise in travel demand seen across the industry. What's…

Read more »