Finder’s list of the best stocks to buy right now in Canada is updated monthly based on the results of our proprietary ranking system. These 20 best Canadian stocks (also known as the best TSX stocks) are starting points for your own research and should not be taken as advice to buy any particular stock.
The best stocks to buy right now in Canada (May 2024)
Over the past month, the materials and consumer staples sectors have grown in Canada, while the healthcare, real estate and industrials sectors have dipped. The S&P/TSX Composite Index has yielded positive total returns of 0.50% month to date and 4.13% year to date.
In a March report, Canadian Securities Exchange CEO Richard Carleton said that, despite challenging market conditions, there was strong investor interest in small-cap securities.
Here’s a quick view of the best Canadian stocks to buy right now. Get more details below.
Our selection of top picks is based on the same criteria as our annual Stock Trading Platform Awards. This is updated yearly to reflect changes in the market.
"Best for" picks are those we've evaluated to be best for specific product features or categories – you can read our full methodology here. If we show a "Promoted" pick, it's been chosen from among our commercial partners and is based on factors that include special features or offers, and the commission we receive.
This isn't an exhaustive list of all the trading platforms out there. What's best for you depends on your own investing strategy, budget and financial goals.
More info on the best stocks to buy in Canada right now
Denison Mines Corp (DML.TO)
Denison Mines Corp. engages in the acquisition, exploration, and development of uranium bearing properties in Canada.
CES Energy Solutions Corp., together with its subsidiaries, engages in design, implement, and manufacture of advanced consumable fluids and specialty chemicals in the United States and Canada. The company provides solutions for drill-bit, point of completion and stimulation, wellhead and pump-jack, and pipeline and midstream markets.
Computer Modelling Group Ltd., a computer software technology company, engages in the development and licensing of reservoir simulation software and related services in Canada and internationally. The company offers CMOST-AI, an intelligent optimization and analysis tool that offers solution for reservoir by combining advanced statistical analysis, machine learning, and non-biased data interpretation; IMEX, a black oil simulator that is used to model primary and secondary oil recovery processes in conventional and unconventional reservoirs; and GEM, an equation-of-state reservoir simulator for compositional, chemical, and unconventional reservoir modelling.
Fairfax Financial Holdings Limited, through its subsidiaries, provides property and casualty insurance and reinsurance, and investment management services in the United States, Canada, Asia, and internationally. The company operates through Property and Casualty Insurance and Reinsurance, Life insurance and Run-off, and Non-Insurance Companies segments.
Stantec Inc. provides professional services in the areas of infrastructure and facilities to the public and private sectors in Canada, the United States, and internationally.
Athabasca Oil Corporation engages in the exploration, development, and production of thermal and light oil resource plays in the Western Canadian Sedimentary Basin in Alberta, Canada. It operates through Thermal Oil and Light Oil segments.
Constellation Software Inc., together with its subsidiaries, acquires, builds, and manages vertical market software businesses in Canada, the United States, Europe, and internationally. It provides mission critical software solutions for public and private sector markets.
Valeura Energy Inc., together with its subsidiaries, engages in the exploration, development, and production of petroleum and natural gas in Thailand and in Turkey. The company was founded in 2010 and is headquartered in Singapore..
Aya Gold & Silver Inc., together with its subsidiaries, engages in the exploration, evaluation, and development of precious metals projects in Morocco. The company primarily explores for gold and silver deposits.
Enerplus Corporation, together with its subsidiaries, explores and develops crude oil and natural gas in the United States. Its oil and natural gas properties are located primarily in North Dakota, Colorado, and Pennsylvania.
Mainstreet Equity Corp. engages in the acquisition, redevelopment, repositioning, and management of mid-market residential rental apartment buildings in Western Canada.
TerraVest Industries Inc. manufactures and sells goods and services to energy, agriculture, mining, transportation, and other markets in Canada and the United States.
What you should know before buying the best Canadian stocks
There’s no single winning strategy to finding what experts might call the best stocks to buy right now in Canada, because the most important considerations are your own goals and circumstances.
Our list of the best Canadian stocks is not personal financial advice; we have not considered your personal objectives and financial situation. Do your own research, and speak with an investment professional if in doubt.
Whether you care more about short-term capital gains or long-term dividend growth, it’s important to know what risk you’re comfortable with and whether a stock is performing well, making a profit, paying dividends or losing value. Past performance does not guarantee future results. Investments can increase and decrease in value.
We used Finder’s proprietary algorithm to rate stocks listed on the TSX based on price, performance, profit, revenue and dividends. Our fundamental analysis filters stocks by taking into account historical prices, dividends, revenue growth, (low) price volatility and profit margins. This might indicate a quality stock, but we do not guarantee the performance or returns of any investment.
To avoid smaller, more speculative stocks, we only include companies with a market cap of more than CAD $200 million. In order to better compare historical data, we filtered out stocks that have been listed for less than five years. This methodology no doubt filters out some good stocks, so our decision to include or exclude a stock from our list does not indicate whether it’s a good or bad investment.
For more information about our algorithm, check out our stock ranking page.
This list and data was compiled May 3, 2024. The algorithm was last updated January 27, 2021.
Compare online brokers to buy the best stocks in Canada
To invest in any of these stocks, you’ll need a brokerage account. Compare online stock trading platforms below and click “Go to site” to get started.
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Canadians consider stocks a smart investment option: 2023 survey
According to results from the Finder: Consumer Sentiment Survey Q1 (CSTQ1), more than a third (36.18%) of Canadians considered equities to be a smart investment in the first quarter of 2023. This dropped only slightly in the second quarter of 2023 to 27%, according to the Finder: Consumer Sentiment Survey Q2 (CSTQ2).
Men preferred stocks as an investment option, with 41% considering Q1 2023 a “good time to invest in stocks,” compared to 32% of female investors.(1)
Age also had an impact on an investor’s confidence in stocks as an investment opportunity. The youngest generation, Gen Z (investors up to the age of 24) had the most confidence in stocks as a good investment opportunity in the first quarter of 2023 with 53% believing “now is a good time to invest in stocks,” compared to 42% of millennials, 31% of Gen X and 19% of baby boomers.
In general, almost a third of Canadians investors (31%) held stocks outside of their registered accounts, such a retirement savings fund (RRSP) or Tax-Free Savings Fund Account (TFSA). Almost three quarters (72%) bought or sold stock through an online stock platform or app. This seems logical, given that 29% of respondents in the CSTQ2 stated they had never worked with, and had no plans to use, the services of a financial advisor.(2)
FAQs about the best TSX stocks to buy right now
Using Finder's proprietary algorithm, we found the best Canadian stocks to buy right now in May 2024. Out of these, the 5 best Canadian dividend-paying stocks are ARC Resources (ARX), CES Energy Solutions (CEU), Computer Modelling Group (CMG), Fairfax Financial Holdings (FFH) and Stantec (STN).
The S&P/TSX Composite Index is the benchmark index for the Canadian market. It tracks over 200 companies that represent around 70% of the total market capitalization on the TSX. The S&P/TSX 60 tracks 60 of the largest companies listed on the TSX.
If you want to invest in either of these indices, buy shares of exchange traded funds (ETFs) that hold similar stocks. Examples include the iShares Core S&P/TSX Capped Composite Index ETF (XIC), BMO S&P/TSX Capped Composite Index (ZCN) and Horizons S&P/TSX 60 Index ETF (HXT).
To buy the best stocks in Canada, you'll need to open an investment account with a broker. Canada's Big Banks offer online investment platforms, but you can also open an account with popular brokers like Wealthsimple, Qtrade and Interactive Brokers.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product on the provider's website.
Mackenzie Domazet is investments publisher at Finder. She has worked at one of Canada’s largest financial institutions, as well as one of the country's fastest growing fintech companies. She also films videos for the Investment Finder YouTube channel, where she explains financial concepts, reviews trading platforms and more. An active growth investor, Mackenzie has been investing on her own since she was 18. She has a bachelor’s degree in business and is an avid runner and reader.
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finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
