Best of the Best: 3 BMO “Best Ideas” Stocks to Buy in December 2023

Air Canada (TSX:AC) and two other BMO “best ideas” picks are my favourites for 2024 and beyond.

| More on:
bulb idea thinking

Image source: Getty Images

Bank of Montreal (TSX:BMO) recently revealed its “Best of BMO” stock picks, and there were quite a few intriguing Canadian companies that made the cut. Undoubtedly, there’s still a lot of value, in my opinion, here on the Canadian index. With a weaker loonie and a potential peak in interest rates, 2024 may be a better year than expected.

So, for December 2023, let’s check out three of my favourite picks from BMO’s latest “best ideas” list of picks! Indeed, it was hard to pick just three, but the following, I think, may be able to put the TSX Index to shame.

Cameco

Cameco (TSX:CCO) is a uranium company that’s one of the most capable in the world. The stock has been surging on the back of what can only be described as a nuclear energy renaissance. Indeed, the world needs more “clean” energy, and as more nations become open to unlocking the power of nuclear energy in a safe fashion, Cameco is one of the firms that could continue to benefit.

Indeed, the nuclear renaissance seems like a secular tailwind for the price of uranium. And though the stock has more than doubled in the past year alone, I think there could be more upside if more nuclear power plant projects are announced on a global scale. Though I wish shares were cheaper, I’m unsure if we’ll ever get a much better entry point, given the magnitude of tailwinds. My takeaway? Dollar-cost averaging may be the way to go if you’re keen on the name.

Air Canada

Up next, we have Air Canada (TSX:AC), a company that’s had a tough time getting off the tarmac since the 2020 stock market crash and COVID pandemic. At $18 and change, I think expectations are way too low. The decent summer travel season gains have vanished as the stock cooled in a major way for autumn. I have no idea when Air Canada will be primed for lift-off again, but at these depths, I view the stock as a deep-value play for investors who are bullish on a robust economic recovery at some point over the next two years.

Air Canada stock still looks untimely after all these years. This could change at the drop of a hat, though! If you have a long time horizon, it may be worth hanging on through the turbulence.

NFI Group

Finally, we have NFI Group (TSX:NFI), a bus maker that’s actually had a decent year, surging around 45% year to date. Though the rally has been impressive, the longer-term chart is still ugly. The stock’s still a country mile away from its 2018 peak, just shy of $60 per share.

Today, at nearly $14 per share, new highs seem a tad far-fetched. Regardless, it is encouraging that the firm is seeing the supply chain and liquidity fall into better order again. ATB Capital Markets analyst Chris Murray thinks the stock has “transitioned” to a “more conventional recovery story.” And I’m inclined to agree.

NFI is back. And an improving economy could take the rally into overdrive.

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 Joey Frenette has positions in Bank Of Montreal. The Motley Fool recommends NFI Group. The Motley Fool has a disclosure policy.

More on Investing

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

Emerging Canadian AI Companies With Big Potential

These tech stocks are paving the way to an AI-filled future, but still offer enough growth ahead for a strong…

Read more »

Young Boy with Jet Pack Dreams of Flying
Tech Stocks

Is Constellation Software Stock a Buy, Sell, or Hold for 2025?

CSU stock has long been a strong option for high growth, high value stocks. But are there now too many…

Read more »

rising arrow with flames
Investing

2 Riskier Stocks With High Potential for Canadian Investors in November

Risky stocks such as Well Health Technologies have the potential to provide life-changing long-term returns.

Read more »

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »

senior man and woman stretch their legs on yoga mats outside
Dividend Stocks

TFSA: 2 Canadian Stocks to Buy and Hold Forever

Here are 2 TFSA-worthy Canadian stocks. Which one is a good buy for your TFSA today?

Read more »

Canada day banner background design of flag
Investing

Got $500? 5 Top Canadian Stocks to Buy and Hold

These top Canadian stocks have solid fundamentals with potential to outperform the benchmark index by a wide margin.

Read more »

man touches brain to show a good idea
Energy Stocks

1 No-Brainer Energy Stock to Buy With $500 Right Now

Should you buy a cyclical energy stock at its decade-high? Probably not. But read this before you make a decision.

Read more »

Asset Management
Stocks for Beginners

TFSA: 4 Canadian Stocks to Buy and Hold Forever

Thinking about what to buy with the new TFSA contribution space in 2025? These four Canadian stocks are worth holding…

Read more »