Breaking News
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

4 Top Canadian Stocks to Buy This Month

Stock MarketsJul 21, 2021 14:45
Saved. See Saved Items.
This article has already been saved in your Saved Items
4 Top Canadian Stocks to Buy This Month

Despite the concerns over rising COVID-19 cases, the Canadian equity markets have remained resilient, with the S&P/TSX Composite Index trading 14.4% higher for this year. So, amid investors’ optimism, here are four top Canadian stocks that you can buy this month to earn superior returns.

Air Canada Amid the expansion of vaccination, the Canadian government has announced it will relax travel restrictions between the U.S. and Canada on August 9. These initiatives will allow fully vaccinated Americans to enter Canada, even for non-essential purposes. So, Air Canada (TSX:AC) has announced it will resume its transborder flights between the two countries, including 55 routes and 34 destinations in the United States. Relaxed testing requirements and removal of mandatory quarantine hotel requirements could boost passenger demand.

Meanwhile, earlier this month, the company had announced it will resume its operations from August 1 on 17 routes and 11 key destinations across the world. The expansion of its cargo operations could also boost its financials in the coming years. With its stock price trading at a significant discount from its January 2020 levels, I expect Air Canada to deliver superior returns over the next two years.

Lightspeed POS Lightspeed POS (TSX:LSPD)(NYSE:LSPD) is one of the top performers over the last 18 months, as the increased adoption of omnichannel selling and online shopping has raised the demand for its products and services. Meanwhile, its solid customer base, increasing revenue per customer, new product launches, and up-selling could continue to boost its financials in the coming quarters.

The company also focuses on strategic acquisitions to venture into new markets, expand its product offerings, and strengthen its position in particular markets. So far this year, the company has completed the acquisitions of Vend and NuORDER while working on acquiring Ecwid. So, I expect the rally in Lightspeed POS’s stock price to continue.

goeasy goeasy (TSX:GSY) is one of the solid performers over the last 20 years, with both its top line and bottom line growing at a double-digit rate. Despite the strong growth, the company has secured just 3% of its addressable markets. So, the company has significant scope for expansion. The improvement in economic activities amid the gradual reopening of the economy could drive the demand for its services.

Further, the acquisition of LendCare Holdings has accelerated its growth by widening its product ranges and adding new verticals. Meanwhile, the company also strengthened its financial position by raising US$320 million through debt facilities in April. Besides, the company also rewards its shareholders by consistently increasing its dividends. In the last seven years, it has raised its dividends at a CAGR of 34%. Currently, its forward dividend yield stands at 1.68%. So, given its healthy growth prospects, I am bullish on goeasy.

Tilray Amid the expanding cannabis market due to increased legalization, I have picked Tilray (TSX:TLRY)(NASDAQ:TLRY), the largest cannabis company in the world by revenue, as my final pick. The acquisition of Aphria in May has expanded the company’s product offerings to include a complete portfolio of Cannabis 2.0 products. Meanwhile, the company also recently launched Broken Coast, a cannabis-infused beverage brand in the U.S., and a medical cannabis brand, Symbios, in Canada.

Further, Aphria’s low-cost production and manufacturing facilities and savings from the synergies between the two companies could improve Tilray’s margins in the coming quarters.

Given its E.U. GMP-certified manufacturing facility and a strong distribution network, the company has considerable scope for expansion in the international market. So, I expect Tilray to deliver superior returns over the next two years, despite its near-term volatility.

The post 4 Top Canadian Stocks to Buy This Month appeared first on The Motley Fool Canada.

The Motley Fool owns shares of and recommends Lightspeed POS Inc. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.

This Article Was First Published on The Motley Fool

4 Top Canadian Stocks to Buy This Month

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email