In 2021, the Canadian stock market had a successful year. The S&P/TSX Composite Index returned substantially after the new COVID variant was discovered in early December. There are still a lot of unknowns about the pandemic in 2022. Despite that, you should not be deterred from purchasing stocks right if you want to invest for the long term. Following is a compilation of the top three Canadian stocks to buy or at least keep an eye on in 2022.
Shopify (TSX: SHOP) (NYSE: SHOP) is Canada’s biggest corporation by market capitalization and is not a cheap stock in any sense of the word. The stock’s inflated value is what needs to be the focal point for investors.
Shopify is one of the most expensive TSX companies on the market, with a price-to-sales ratio of more than 40. Even yet, since going public in 2015, the stock has been up by more than 5,000 percent.
The primary reasons why investors are keen on buying shares in the technology business are its track record and development potential.
As long as you can handle the volatility, Shopify is one of the best Canadian stocks to buy in 2022 that every wise investor would want to get their hands on.
Kinaxis (TSX: KXS) is another market-beating technology stock that is positioned to continue posting huge returns for many more years to come.
It has gained 185 percent over the previous five years, outpacing the overall market. As of now, the stock is down 20% from its all-time high.
The technology business offers various supply chain planning solutions. Clients receive customer support across the full supply chain cycle thanks to the cloud-based software provided by the company. Aside from that, Kinaxis has a rapidly expanding footprint. The company already covers nations in North America, Western Europe, and East Asia.
Despite the fact that Kinaxis may not be able to emulate Shopify’s growth, the company’s stock is far less expensive, both in terms of price and market cap. In addition, the fact that the technology stock is selling at a discount presents an excellent purchasing window.
Toronto Dominion Bank
To counteract the volatility of the previous two stocks, here is the final TSX stock in our list.
TD Bank is one of the best Canadian stocks to buy in 2022 for many reasons like solidity and passive income, but the most compelling is the company’s history of outperforming the market.
If you’re planning to invest in high-growth TSX firms, consider TD Bank as a safe bet. Bank stocks may not pique your interest. But having them in your portfolio will come in handy in case the market slumps.
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