There is no better time than now to invest as the market recovers and grows and at the same time with promising vaccines soon to be available to millions of people across North America.
It’s been a long time since Canadian stocks as a whole have outperformed their U.S. counterparts. In 2020, the S&P/TSX Composite Index is down 3.2% through Oct. 13, compared to a gain of 8.7% for the S&P 500, making it the fourth-best performing stock market in the world.
To make things interesting, none of the stocks in this go-around will be from the previous bunch. Given some of these Canadian stocks will continue to perform long-term, I’m making my job that much more difficult.
Here Are Best Canadian Stocks For Long Term Growth 2020
Air Canada (AC.TO)
The first on this list of Canadian stocks to consider is Air Canada. Like airline stocks in the U.S., Air Canada, Canada’s largest carrier, has gotten pummeled by the novel coronavirus. At the end of July, the company announced second-quarter results that saw revenues decline by 89%.
Total passengers carried declined by 96%, and it had an operating loss of $1.56 billion Canadian dollars ($1.19 billion U.S. dollars).
Market Cap: 6.43 Billion
YTD Return: -67.9%
Alimentation Couche-Tard (ATD-A.TO)
Alimentation Couche-Tard is one of the world’s largest operators of gas stations and convenience stores. Its main brand is Circle K, a chain of stores it picked up from ConocoPhillips (NYSE: COP) in late 2003
Market Cap: 48.4 Billion
YTD Return: 8.7%
The pandemic has been good to BRP, the maker of all-terrain vehicles, snowmobiles, and personal watercraft under Can-Am, Ski-Doo, and Sea-Doo. That’s because people have been looking for ways to enjoy time outdoors away from the crowds, and its products do just that.
Market Cap: 6.02 Billion
YTD Return: 28%
Canopy Growth (WEED.TO)
Perspective is an amazing thing. A list of Canadian stocks wouldn’t be complete without a cannabis holding. That’s definitely the case for Canopy Growth and the rest of the publicly traded cannabis stocks.
Market Cap: 12.07 Billion
YTD Return: -11.3%
Ceridian HCM (CDAY.TO)
I look at Ceridian HCM’s year-to-date return, and I’m almost disappointed. That’s because it has gained 309% since going public in April 2018 at $22 a share. Breaking down its performance by year, CDAY gained 54% in 2018, 100% in 2019, and 32.6% in 2020.
Market Cap: 18.6 Billion
YTD Return: 32.6%
Out here on the East Coast of Canada, I see lots of people lining up to get into Dollarama, Canada’s largest dollar store, to pick up cheap goods for the home.
Due to higher costs during the pandemic, profits haven’t been all that robust. Furthermore, Halloween and Christmas aren’t looking nearly as attractive as they usually are for the Montreal-based retailer.
Market Cap: 15.68 Billion
YTD Return: 15.8%
FirstService has to be one of the least known Canadian stocks on the minds of American investors. Yet, its performance is stunningly good, averaging an annualized total return of 33.5% over the past five years, about five times the entire U.S. markets’ performance.
Market Cap: 7.64 Billion
YTD Return: 47.6%
National Bank of Canada (NA.TO)
You have the Big Five Canadian banks, and then you have the National Bank of Canada. Despite having total assets of CA$322 billion, it’s not big enough to make it into the exclusive club.
By comparison, the smallest of the Big Five is the Canadian Imperial Bank of Commerce, which I recommended in 2018. It has CA$769 billion in total assets.
Market Cap: 24.2 Billion
YTD Return: -5.7%
Power Corporation (POW.TO)
Power Corporation is a Quebec holding company controlled by the Desmarais family, who hold 50.6% of the total votes.
The company’s organizational structure was simplified in February to eliminate publicly-traded Power Financial; Power Corporation owned 64% of the subsidiary. It now owns 100%.
Market Cap: 20.19 Billion
YTD Return: -16.2%
Thomson Reuters (TRI.TO)
Thomson Reuters chairman David Thomson is Canada’s wealthiest person with an estimated net worth of $39.5 billion. That’s almost three times the second-wealthiest Canadian.
The provider of business information services is controlled through Woodbridge Company, the Thomson family’s holding company, which owns 66% of its shares.
Market Cap: 52.12 Billion
YTD Return: 17.4%