During this market volatility, it can feel pretty crazy to get into the market. But I’d argue it’s the best time. You can get in on some of the best stocks out there — ones to buy at a discount and hold pretty much forever!
That’s why today, we’re going to look at four options that are perfect long-term buys. And, of course, we’ll look at what makes them so great in the first place.
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Cameco stock
Cameco (TSX:CCO) is one of the world’s largest uranium producers, with operations based in Canada, one of the most geopolitically stable regions. This stability is crucial as geopolitical events continue to impact global supply chains and procurement strategies for nuclear fuel. Cameco’s strategic position ensures reliable supply, making it a preferred partner for utilities seeking long-term contracts for uranium products and services.
Cameco has demonstrated strong financial performance, particularly in its core uranium segment. In the first quarter of 2024, Cameco reported a 34% increase in net earnings. It also saw a 16% increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) compared to the same period in 2023. This was largely driven by a 27% increase in the Canadian dollar average realized price of uranium. Despite normal quarterly variations, Cameco’s robust performance and strategic investments across the nuclear fuel cycle position it well for future growth.
Cameco’s acquisition of Westinghouse Electric Company enhances its value chain presence and offers growth opportunities. This acquisition is expected to generate significant long-term benefits despite initial revaluation and transition costs impacting short-term earnings. Additionally, Cameco’s collaboration with Westinghouse and Saskatchewan Power to explore nuclear reactor technology underscores its commitment to advancing nuclear energy solutions.
Lundin
Lundin Mining (TSX:LUN) has demonstrated robust financial performance, with significant improvements in cash flow and production levels. In the fourth quarter of 2023, Lundin Mining reported free cash flow of $61.2 million, a substantial increase from the previous year. This growth was driven by higher gross profit at its operations and the inclusion of cash flows from the recently acquired Caserones mine.
Lundin Mining’s strategic acquisitions and investments have bolstered its growth prospects. The company recently increased its stake in the Caserones copper-molybdenum mine to 70%, investing $350 million to enhance copper production. This move aligns with Lundin’s focus on expanding its copper portfolio, particularly in Latin America, where copper demand is rising due to the global shift towards renewable energy and electric vehicles.
The outlook for base metals, particularly copper, remains strong. The global transition to cleaner energy and increased infrastructure spending are expected to drive demand for copper and other base metals. Lundin Mining’s strategic positioning and continued investment in high-quality assets make it well-placed to benefit from these industry trends. With a 2.47% dividend yield, Lundin also provides a steady income stream.
Cargojet
Cargojet (TSX:CJT) is a leading provider of time-sensitive air cargo services in Canada, operating a robust network across North America and internationally. Cargojet has shown impressive financial performance, with its latest earnings report reflecting strong results. For the first quarter of 2024, the company reported total revenue of $231.2 million beating analysts’ expectations.
Moreover, Cargojet has been actively increasing its fleet size and capacity. The company plans to add more aircraft, which will increase its capacity by over 50% in the next 2.5 years.
TFII
TFI International (TSX:TFII) operates through several business segments, including Package and Courier, Less-Than-Truckload (LTL), Truckload (TL), and Logistics. This diversification helps mitigate risks associated with reliance on a single revenue stream. Each segment has shown robust performance, contributing to the company’s overall growth and stability.
In the first quarter of 2024, the company reported strong earnings, with a significant revenue increase. Total revenue for the first quarter of 2024 was approximately $1.87 billion, and the company achieved an earnings per share of $1.24, underscoring its ability to generate substantial income and maintain profitability.
TFI International is known for its strategic acquisitions, which have significantly expanded its operational footprint and capabilities. The recent acquisition of Daseke for $1.1 billion is a prime example, enhancing TFI’s presence in the flatbed trucking sector. This acquisition aligns with TFI’s growth strategy and is expected to contribute positively to its financial performance.
