Advertisement
Canada markets closed
  • S&P/TSX

    21,807.37
    +98.93 (+0.46%)
     
  • S&P 500

    4,967.23
    -43.89 (-0.88%)
     
  • DOW

    37,986.40
    +211.02 (+0.56%)
     
  • CAD/USD

    0.7275
    +0.0012 (+0.16%)
     
  • CRUDE OIL

    83.24
    +0.51 (+0.62%)
     
  • Bitcoin CAD

    88,109.95
    +2,976.11 (+3.50%)
     
  • CMC Crypto 200

    1,371.97
    +59.34 (+4.52%)
     
  • GOLD FUTURES

    2,406.70
    +8.70 (+0.36%)
     
  • RUSSELL 2000

    1,947.66
    +4.70 (+0.24%)
     
  • 10-Yr Bond

    4.6150
    -0.0320 (-0.69%)
     
  • NASDAQ

    15,282.01
    -319.49 (-2.05%)
     
  • VOLATILITY

    18.71
    +0.71 (+3.94%)
     
  • FTSE

    7,895.85
    +18.80 (+0.24%)
     
  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     
  • CAD/EUR

    0.6824
    +0.0003 (+0.04%)
     

2 Soaring Stocks I Would Buy Now With No Hesitation

Hand arranging wood block stacking as step stair with arrow up.
Image source: Getty Images

Written by Chris MacDonald at The Motley Fool Canada

This recent bull market rally is one that has led to a number of soaring stocks taking flight yet again. The hype-driven rally we saw in 2021 appears to be repeating, with many growth stocks seeing impressive upside in this current market.

Of course, the reality is that most soaring stocks tend to come back down to earth after hype cycles cool. However, certain high-growth stocks have maintained their impressive growth trajectories for a long time, with certain Canadian stocks generating specific interest from long-term investors for this reason.

ADVERTISEMENT

Here are two top Canadian soaring stocks I think investors can buy at current levels.

Alimentation Couche-Tard

Alimentation Couche-Tard (TSX:ATD) may be a well-known Canadian operator of gas stations and convenience stores, but it’s a company that’s much less well-known among investors in other countries. The company’s portfolio includes more than 12,000 stores in a wide range of countries in North America and Europe, operating under key banners such as Circle K, Couche-Tard, Holiday, Ingo, and Mac’s.

Couche-Tard has continued to see consistent top- and bottom-line growth in recent years, fueling a fundamentals-driven rally. The company’s earnings per share grew at a healthy 8.6% clip over the past three years, with a still-attractive price-to-earnings ratio of around 18 times, suggesting this stock could have much more room to run. Notably, Couche-Tard stock also exhibits a beta of 0.87, meaning the company is much less volatile relative to the overall market. For long-term investors seeking stability, that’s a great thing.

Now trading near its all-time high, some investors may want to see a pullback before buying shares of ATD stock here. However, I’m of the view that this is a company with a reasonable valuation and strong long-term growth prospects. Until something changes, this stock is worth accumulating and holding for at least another decade.

Constellation Software

Canada-based Constellation Software (TSX:CSU) develops and customizes software for private and public sector markets. The company focuses on acquiring, managing and building vertical-specific software businesses. Constellation Software operates in both the public and private sectors, servicing a wide range of clientele from credit unions to communications providers, tour operators, beverage distribution companies, auto clubs, and more.

Constellation Software has continued to see its cash flow growth outpace investor expectations, leading to the stock chart investors see above. Indeed, few Canadian software companies have a chart like this, and Constellation continues to prove its ability to compound its existing growth via new acquisitions over time.

Using a growth-by-acquisition model, Constellation has accumulated a wide range of software and software-related businesses that benefit from operating under the Constellation umbrella. For 2024, Constellation has forecasted it will increase its revenue from $9 billion in 2022 to $13.22 billion. That could lead adjusted earnings per share to surge around 40% this coming year, with analysts projecting similar bottom-line growth out to 2027.

If Constellation can continue to fire on all cylinders, this is a stock investors would do well to watch closely. I’m of the view that this software name is worth buying on any significant dip and holding for the very long term.

The post 2 Soaring Stocks I Would Buy Now With No Hesitation appeared first on The Motley Fool Canada.

Should You Invest $1,000 In Alimentation Couche-Tard?

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 32 percentage points.*

They just revealed what they believe are the 10 best Starter Stocks for investors to buy right now… and Alimentation Couche-Tard made the list -- but there are 9 other stocks you may be overlooking.

Get Our 10 Starter Stocks Today * Returns as of 12/22/23

More reading

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

2024