As we head into the final few trading sessions for the year, investors should ask themselves which stocks they’d love to own for decades. Indeed, the ideal holding period for a truly “wonderful” stock is forever. But it’s not a realistic investment horizon.
Either way, the following trio of Canadian stocks, I believe, are great holds for as long as possible. So, if you’re looking to build wealth for a retirement 20 or 30 years from now, the following plays are definitely worth keeping tabs on as we head into the new year.
Indeed, many investors may be inclined to lower their expectations for 2024. Undoubtedly, 2023 was a solid year for stocks, with the TSX Index clocking in a 7.4% gain (so far) while the tech-heavy Nasdaq 100 rocketed more than 55%. After such robust tech-driven gains, I think the odds of further outperformance favour Canadian stocks from here as the market’s strength spreads to other corners of this market.
Without further ado, let’s check out two TSX blue chips that I think look primed for a strong 2024.
Restaurant Brands International
Restaurant Brands International (TSX:QSR) is a Canadian fast-food firm behind Tim Hortons, Burger King, Firehouse Subs, and Popeyes Louisiana Kitchen. The Burger King brand has come a long way in recent years, thanks to its reinvention efforts and major rebranding.
Even if you’re no fan of Burger King, I view QSR stock as still intriguing for its other three brands. Tim Hortons is a Canadian icon with a lot to gain as it attempts to bring its loyalty program to the next level while introducing creative, new menu offerings. And, of course, there’s Popeyes, a chicken chain that may be the best of the batch, depending on who you ask.
Either way, QSR is a diversified mix of wonderful fast-food brands. With shares on the cusp of a potential breakout to new highs ($105 in sight for 2024?), I’d much rather be a buyer than a seller, especially if 2024 is hit with a mild economic slump. Fast-food firms are just so resilient in the face of economic slips and stumbles.
Alimentation Couche-Tard
Alimentation Couche-Tard (TSX:ATD) is a proven market beater that’s crushed the TSX Index so far this year, with an applaud-worthy 26.4% gains posted year to date. Going into the new year, the convenience store icon behind Circle K still looks really cheap. At 18.3 times trailing price to earnings, you’ll be getting steady earnings growth over time. With a solid cash flow stream and plenty of liquidity, Couche-Tard also stands to snag a bargain in the global convenience store scene.
Slowly but steadily, Couche-Tard seems to be consolidating the convenience store industry. Amid inflation and economic pains, Couche-Tard seems destined for further growth. And it remains a mystery as to why the stock isn’t going for a much higher multiple in a market that has its fair share of concerns over the fate of the economy in 2024.
Personally, Couche-Tard stands out as a growth stock that could be driven higher by earnings, multiple expansion, and takeover announcements. It’s the trio of drivers that I believe could allow ATD stock to outpace the TSX again in the new year.
