3 Soaring Stocks I’d Buy Now Without Hesitation

Plenty of stocks are well-positioned for short-term growth, even in a market that’s going through a correction phase.

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Until a few days ago, many Canadian investors were bracing for a market crash. But even though the market is quite volatile, a full-blown crash might not manifest. And if it doesn’t, many soaring stocks might keep on doing so, and many that had to “pause” their climb might revert back to a bullish phase. Three such stocks deserve some attention from Canadian investors.

A packaging company

Transcontinental (TSX:TCL.B) is a Montreal-based packaging company and the largest printer in Canada. Packaging and printing divisions comprise roughly 96% of the company’s revenue. The company’s footprint is quite impressive, with 40 production facilities in multiple countries.

One of its core business strengths is the free cash flow it generates, which allows it to fund projects and explore growth avenues without relying on debt.

It’s not a consistent growth stock, and its performance in the last decade has been cyclical. One reason to consider this stock right now is that it’s in the early days of a bull market trend. TCL.B has risen 9% since the beginning of this year, which includes the current downward movement triggered by a weak market.

Its dividends are another reason to take into account. The current yield is 5.7%, and if TCL.B stock continues to rise, the yield may shrink. Buying now might allow you to capture the best growth potential and dividends.

A bank

Most investors seeking Canadian bank stocks stick to the big six, but other promising opportunities exist, including VersaBank (TSX:VBNK). It was founded in Saskatoon in 1980 but is now headquartered in Ontario. It’s a chartered bank, but its services are not limited to that of a conventional bank.

Versabank was the first fully digital financial institution in the world, and it also has a cyber-security-focused subsidiary (DRT Cyber) specializing in banking security.

The stock has been trading on the TSX for over a decade, though most of its early years were relatively stagnant performance-wise. However, its performance has improved quite a bit in the last five years, when it returned about 124%. VBNK’s was also bullish right until the market slumped, and it may pick up right where it left off now that the market is recovering.

An airline

Air Canada (TSX:AC) is one stock that many investors may hesitate about before buying, and understandably so. The airline stock has been brutalized for years due to the pandemic but has started showing some life in the last few days. The stock has started to go up at a decent pace, though we have yet to see how long this “bullish” phase lasts.

However, two factors might encourage investors to give Air Canada a shot. The first is the price-to-earnings ratio of 3.5, and connected to it, the airline’s financials are finally moving towards safe territory. Demand is rising as well, and it might help the airline stock finally take off from the slump it has been in.

Foolish takeaway

The three stocks look primed for at least a short-bullish stretch but they are also worth considering for the long term. Only one of the three stocks offers dividends and that one you can hold even when it plateaus or goes bearish.

Though for the other two, planning and timing your exit can play a critical role in how much profit you can make with these investments.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Transcontinental. The Motley Fool has a disclosure policy.

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