Forex Reviews

The Best TSX Stocks to Invest $5,000 in December 2023 The Motley Fool Canada

The Fed may continue to push interest rates higher and the U.S. economy may slip deep into recession. A recent Morgan Stanley report predicts inflation will dip down to 2.4% by the end of 2023, the rate hikes will end and the economy will flatline but not shrink. The company’s shares are dual listed on the Toronto Stock Exchange as well as the New York Stock Exchange under the ticker SHOP.

Higher input costs and higher interest rates took a toll on businesses and the financial markets. If you are looking to invest in a Canadian renewable energy company, Innergex Renewable Energy is a good stock to potentially consider. Given the stock’s expensive valuation metrics, investors are expecting Innergex to aggressively grow its cash flows and profits going into the future. Innergex Renewable Energy is entirely focused on clean energy sources and has installed a gross capacity of more than 4 gigawatts of renewable energy. The company owns and operates or has an ownership interest in 84 facilities and 13 projects across Canada, France, Chile, and the US.

  • Our editorial team of trained journalists works closely with leading personal finance experts in Canada.
  • Its dividends are the primary reason to consider investing in this company, but it does offer reasonable capital preservation potential.
  • The company has successfully moved on from its branding as the credit card of an older, affluent customer to capture market share in the millennial and Gen-Z population.
  • That general thesis hasn’t changed much from when I first noticed Intuitive Surgical stock in 2005.

That’s the toughest job of investing, but also the surest way to grow your wealth.

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There’s just so much to be confident about for Chipotle this year and into the future. It’s already up 15% in January, and it should continue to reward shareholders in 2023. “We’re nearing the point where two great firms become one and TD Ameritrade clients become Schwab clients,” said Jonathan Craig, head of investor services at Charles Schwab. If 2023 is your first year investing, we recommend getting caught up on the fundamentals of investing. Use our investing guide to kickstart your year in investing, then browse the top online brokerage accounts in Canada to get started.

The best case for its future growth is the ability to do that again and change according to trends. Price-sensitive economies make investors more value-driven than ever, which positions hybrid robos as the best of both worlds for investors eager for guidance but anxious about costs. No matter the reason, hybrid robo-advisors—those that offer algorithm-driven investing plus access to traditional advisors—may be teed up for a lot of interest in 2023. While supply chain issues stymied clean energy developments from electric vehicles (EVs) to solar panels over the last two years, 2023 could be a very good year for renewables. Unfortunately, many blockchain conversations will likely be colored by the debacle at FTX instead of the technology’s long-term, untapped potential.

  • Shopify is an Ottawa-based eCommerce platform that was founded in 2016 by current CEO Tobias Lutke.
  • NovoCure develops and markets devices that create tumor-treating fields (TTF) that disrupt cancer cell division.
  • Still, due to their relative stability and in some cases an impressive dividend, Canadian stocks may have a place in an investor’s portfolio.
  • The Buffett bears will say he has lost his fastball, but Berkshire continues to produce market-beating returns in most years despite its massive size.
  • Shopify’s software helps vendors manage, design, and sell products online, through mobile stores, and through physical retail locations.

The company benefited from a third-quarter launch of its type 2 diabetes drug, Mounjaro, plus growth from breast cancer drug Verzenio, diabetes drug Trulicity, migraine drug Emgality, and others. If the economy stagnates or worsens in 2023, the trends of increasing traffic and higher average transactions should continue. The company also expects to open 1,050 stores in 2023, including 35 stores in Mexico. In response, company leaders are focused on streamlining their supply chain. Those efficiency efforts can help with the current inflation trend, but will also create long-term advantages. All carry buy or higher ratings from the analyst community and consensus price targets representing upside of 5% to 56%.

Berkshire Hathaway owns a collection of about 60 subsidiary businesses, including household names such as GEICO, Duracell, and Dairy Queen, just to name a few. In 2023, demand for Disney’s theme parks, movies, and cruise line has been very strong despite inflation pressures and recession fears. In fact, revenue is far greater than in comparable pre-pandemic times in Disney’s parks due to initiatives that have driven higher per-guest spending. Plus, the company recently announced it will invest $60 billion over the next 10 years in its theme parks and cruise lines to make sure they stay full for the foreseeable future. It’s not hard to see why PayPal’s management is choosing to use its capital this way.

The Top and Bottom Stocks of 2023

They also generally have greater liquidity, making it easier to buy and sell shares with minimal transaction costs. Share prices are up 23% year to date but down 40% from their record of nearly $150 reached in November 2021. Net income has taken a beating year over year, but there are some considerable potential upsides going forward.

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One concern about investing in Canadian stocks is that they can be heavily weighted towards cyclical industries. For example, as of February 2022 financials (33.5%), energy (14.8%) and industrials (11.7%) made up nearly 60% of the index. That may be too much for some investors particularly because those sectors all tend to correlate roughly the same way as the economic cycle. But as a long-term play, Canadian stocks are worth considering with a small part of your portfolio.

Best Stocks in Canada in 2023

As with investing in any asset class, investors need to consider their investment objective, time horizon and risk tolerance before choosing a fund that fits their needs. Investors will also want to pay attention to the fund’s fee structure to ensure you’re making the most efficient use of your capital. For different reasons finance, materials, and energy stocks are among the best performing stocks as of September 2022. Here’s a brief overview of each sector and some of the top names for investors to consider. Stability – Canada is not exempt from any problems that impact the global economy. However, the country is known for stable financial and business policies that have kept the economy relatively stable.

Canadian Natural Resources

And the utility companies that overlap with green power are also compelling ESG and future-facing investment choices. It offers a diverse range of services, ranging from business consulting to infrastructure services, and caters to about twelve distinct industries. Shopify is one of the largest tech company in Canada by market cap, and for a brief time, it enjoyed the top spot on the TSX as well, as the most valuable stock in Canada. Dream Industrial offers one of the best combinations of capital appreciation potential and yield, not just among the REITs but on the TSX in general. Like almost all other Canadian banks, the primary reason many investors are attracted to the Royal Bank of Canada is its safe and healthy dividends.

Canadian Pacific Railway is a Calgary-based railway that was established back in 1881. The stock is dual-listed on the TSX and NYSE and is a constituent of the S&P/TSX 60 index. The stock is dual-listed on the TSX and NYSE and is a component of the S&P/TSX 60 index. Enbridge is an Alberta-based pipeline company that was established in 1949.

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