14 Best Canadian Stocks To Buy and Hold In 2024
In this article, we discuss 14 best Canadian stocks to buy for 2024. If you want to skip our discussion on the Canadian economy, head over to 5 Best Canadian Stocks To Buy and Hold In 2024.
Despite concerns about high inflation and rising interest rates, the Canadian economy performed better than expected in 2023, with an estimated growth of 1.1%. This growth, slightly below the economy's 2% potential, exceeded initial forecasts. Strong population growth drove demand, supporting the labor market, and creating around 430,000 jobs between January and November 2023. The Bank of Canada responded to the economy's resilience by raising its key rate by 75 basis points to 5.0%. However, growth was uneven in 2023, particularly in interest rate-sensitive sectors like housing, which experienced notable slowdowns. Inflation in Canada has remained stable around 2% annually for the past 30 years, contrasting with the 8% and 13% levels seen in the 1970s and 1980s. Although experts anticipate a decrease in inflation, reaching a stable 2% inflation rate is not projected until the end of 2024. Despite an overall decline in inflation, food price inflation is expected to hover around 4-5% due to factors such as the Canadian dollar's weakness affecting world market trading. Similarly, housing-related expenses are also predicted to rise, surpassing the Bank of Canada's 2% inflation target, particularly in the first half of the year.
On the other hand, Deloitte predicts that inflation will return to the target level by mid-2025. The Bank of Canada is anticipated to commence rate cuts once the path to achieving a 2% target becomes evident, likely in the spring of 2024, leading to a rebound in the latter part of the year. Subsequently, there is an expectation of an acceleration in real economic growth, projecting an average growth rate of 0.4% for 2024. The robust momentum is foreseen to persist into 2025, with the economy experiencing a 3% growth as consumer spending increases and exports benefit from the opening of the LNG Canada export terminal in British Columbia.
According to Oxford Economics, key themes for Canada in 2024 include a moderate recession followed by a gradual recovery, driven by factors such as rising debt service costs and housing corrections. The migration-led population boom is projected to continue, impacting the labor market and housing supply. The Bank of Canada is anticipated to initiate an easing cycle as inflation returns to the target of 2%, with fiscal policy facing challenges amid the economic situation. Wildcards include potential disruptions such as wildfires, extreme weather, labor strikes, and supply chain issues, along with external risks related to slowing global growth and geopolitical tensions.
While the economy is somewhat rocky at the moment, investors can buy Canadian stocks now and reap the rewards later. Some of the best Canadian stocks to buy include Shopify Inc. (NYSE:SHOP), Teck Resources Limited (NYSE:TECK), and Canadian Pacific Kansas City Limited (NYSE:CP).
Our Methodology
We chose the top Canadian stocks based on overall hedge fund sentiment toward each stock. We have assessed the hedge fund sentiment from Insider Monkey’s database of 933 elite hedge funds tracked as of the end of the fourth quarter of 2023. The list is arranged in ascending order of the number of hedge fund holders in each firm. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).
Photo by Rachael Annabelle on Unsplash
Best Canadian Stocks To Buy and Hold In 2024
14. Franco-Nevada Corporation (NYSE:FNV)
Number of Hedge Fund Holders: 30
Franco-Nevada Corporation (NYSE:FNV) is a gold-focused royalty and streaming company that operates in Latin America, the United States, and Canada. Founded in 1986 and headquartered in Toronto, Canada, the company manages a portfolio of precious metals like gold, silver, and platinum group metals. On January 30, Franco-Nevada Corporation (NYSE:FNV) declared a C$0.36 per share quarterly dividend, a 5.9% increase from its prior dividend of C$0.34. The dividend is payable on March 28, to shareholders on record as of March 14.
According to Insider Monkey’s fourth quarter database, 30 hedge funds were bullish on Franco-Nevada Corporation (NYSE:FNV), compared to 27 funds in the prior quarter.
Like Shopify Inc. (NYSE:SHOP), Teck Resources Limited (NYSE:TECK), and Canadian Pacific Kansas City Limited (NYSE:CP), Franco-Nevada Corporation (NYSE:FNV) is one of the best Canadian stocks to buy.
Here is what Horizon Kinetics has to say about Franco-Nevada Corporation (NYSE:FNV) in its Q3 2022 investor letter:
“Back to basic principles. We don’t hold gold in client portfolios, we hold gold royalty companies. The two have surprisingly little in common. The gold royalty company generates very impressive profits even if the gold price never rises, and it earns those profits year after year. Here is a long-term chart of Franco Nevada Corp., the premier gold royalty company vs. gold itself: a comparable gold price today than a decade ago, yet Franco Nevada returned 12.5% annually, matching the S&P 500 return, despite its nearsole source of revenues unchanged. What will Franco Nevada’s earnings and share price do if gold rises over the course of a decade?”
13. Bausch Health Companies Inc. (NYSE:BHC)
Number of Hedge Fund Holders: 31
Bausch Health Companies Inc. (NYSE:BHC) is a diversified pharmaceutical company operating in medical fields like gastroenterology, hepatology, neurology, dermatology, international pharmaceuticals, and eye health. Bausch Health Companies Inc. (NYSE:BHC) ranks 13th on our list of the best Canadian stocks. On February 21, Bausch reported a Q4 revenue of $1.2 billion, experiencing 18% year-over-year growth. The Vision Care segment contributed significantly, adding $662 million to the total revenue. The Pharmaceuticals segment generated $307 million with an impressive year-over-year growth of around 67%, attributed in part to increased revenue from the recently acquired dry-eye treatment, Xiidra, from Novartis.
According to Insider Monkey’s fourth quarter database, GoldenTree Asset Management is the leading stakeholder of Bausch Health Companies Inc. (NYSE:BHC), with 27.6 million shares worth $221.7 million. Overall, 31 hedge funds were bullish on the stock.
Here is what Miller Value Partners Opportunity Trust Fund has to say about Bausch Health Companies Inc. (NYSE:BHC) in its Q2 2022 investor letter:
“Bausch Health Companies Inc. (NYSE:BHC) declined during the quarter as the company consummated its Bausch+Lomb IPO at valuations far below expectations, reported disappointing Q1 2022 results, and delayed its plan to spin out its Solta (aesthetics) business due to difficult market conditions. While the company spun off 10% of Bausch+Lomb (BCLO) they retained 90% of the company which they intend to distribute once they have met their target leverage ratio of 6.5-6.7x. The future spin-off value of the Bausch+Lomb piece represents a value of $12.55 per share, 39% above where Bausch Health is currently trading. The company recently appointed John Paulsen as Chair of the Board, which should accelerate value realization.”
12. Canadian National Railway Company (NYSE:CNI)
Number of Hedge Fund Holders: 35
Canadian National Railway Company (NYSE:CNI) is involved in rail, intermodal, trucking, and marine transportation and logistics operations in Canada and the United States. On January 24, Canadian National Railway Company (NYSE:CNI) declared a C$0.845 per share quarterly dividend, a 7% increase from its prior dividend of C$0.790. The dividend is distributable on March 28, to shareholders on record as of March 7. Canadian National Railway Company (NYSE:CNI) is one of the best Canadian stocks to monitor.
According to Insider Monkey’s fourth quarter database, 35 hedge funds were long Canadian National Railway Company (NYSE:CNI), compared to 39 funds in the earlier quarter. Bill & Melinda Gates Foundation Trust is the biggest stakeholder of the company, with 54.8 million shares worth $6.8 billion.
11. Suncor Energy Inc. (NYSE:SU)
Number of Hedge Fund Holders: 37
Suncor Energy Inc. (NYSE:SU) is an integrated energy company operating in Canada and internationally. The company operates through three segments – Oil Sands, Exploration and Production, and Refining and Marketing. Suncor Energy Inc. (NYSE:SU) is one of the best Canadian stocks to invest in. On February 21, the company declared a C$0.545 per share quarterly dividend, in line with previous. The dividend is payable on March 25, to shareholders on record as of March 4.
According to Insider Monkey’s fourth quarter database, 37 hedge funds held stakes in Suncor Energy Inc. (NYSE:SU), compared to 34 funds in the last quarter. Paul Singer’s Elliott Management is the largest stakeholder of the company, with a position worth $320.6 million.
Artisan International Value Fund made the following comment about Suncor Energy Inc. (NYSE:SU) in its Q4 2022 investor letter:
“Suncor Energy Inc. (NYSE:SU), a Canada-based operator of oil sands mines, refineries and retail gas stations, was the third-largest contributor to return for the year, mainly due to higher oil prices. The share price increased by one third. Notably, the portfolio generated significant returns from energy stocks, including Suncor, Tenaris, Imperial Oil and tangentially Alimentation Couche-Tarde and Seven & i Holdings, both of which are in the gas station business. Given the cyclicality and commodity nature of the oil business, we have sold shares of these investments, including the complete sale of both Tenaris and Imperial Oil.”
10. Nutrien Ltd. (NYSE:NTR)
Number of Hedge Fund Holders: 39
Nutrien Ltd. (NYSE:NTR) specializes in providing crop inputs and services. It operates through four segments – Retail, Potash, Nitrogen, and Phosphate. The Retail segment distributes crop nutrients, crop protection products, seeds, and merchandise products. The Potash segment offers granular and standard potash products. The Nitrogen segment provides nitrogen-based products, including ammonia, urea, urea ammonium nitrate, industrial-grade ammonium nitrate, and ammonium sulfate. The Phosphate segment offers solid fertilizer, liquid fertilizer, and industrial and feed products. Nutrien is one of the best Canadian stocks to buy.
On February 21, Nutrien Ltd. (NYSE:NTR) declared a $0.54 per share quarterly dividend, a 1.9% increase from its prior dividend of $0.53. The dividend is payable on April 11, to shareholders on record as of March 28.
According to Insider Monkey’s fourth quarter database, 39 hedge funds were bullish on Nutrien Ltd. (NYSE:NTR), compared to 33 funds in the last quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the largest position holder in the company.
ClearBridge Investments made the following comment about Nutrien Ltd. (NYSE:NTR) in its Q3 2022 investor letter:
“However, we believe this is exactly the kind of environment that separates the highest-quality companies from their peers and allows them to strengthen their competitive positioning. For example, Nutrien Ltd. (NYSE:NTR), a Canadian fertilizer company, was a top contributor during the quarter. While the war in Ukraine and economic sanctions on Russia have significantly reduced the output of two of the world’s largest agricultural producers, Nutrien has benefited from a strong global agricultural cycle and from farmers seeking to increase their output and capitalize on higher agricultural prices.”
9. Canadian Natural Resources Limited (NYSE:CNQ)
Number of Hedge Fund Holders: 41
Canadian Natural Resources Limited (NYSE:CNQ) is engaged in the acquisition, exploration, development, production, marketing, and sale of crude oil, natural gas, and natural gas liquids. It is one of the best Canadian stocks to buy. In December 2023, Canadian Natural Resources Limited (NYSE:CNQ) achieved its highest total oil and gas production from Alberta wells since at least 2018. The company's overall output in the province increased by 2.3% to reach 703,330 barrels of oil equivalent per day (boe/day). This growth was driven by a surge in oil production to 437,757 barrels per day (bbl/day), the highest since September, and a record-breaking natural gas production of 1.593 billion cubic feet per day (cf/day).
According to Insider Monkey’s fourth quarter database, 41 hedge funds were bullish on Canadian Natural Resources Limited (NYSE:CNQ), same as the prior quarter. Donald Yacktman’s Yacktman Asset Management is the biggest stakeholder of the company, with nearly 15 million shares worth $978 million.
Moon Capital Management made the following comment about Canadian Natural Resources Limited (NYSE:CNQ) in its second quarter 2023 investor letter:
“Canadian Natural Resources Limited (NYSE:CNQ): For several reasons, we have always viewed the oil and gas industry with an especially skeptical eye. Commodity businesses are difficult to forecast, and the industry has long been plagued by poor incentive structures and principal-agent issues. The management of many of the smaller companies in the industry are notable for seldom being burdened with an abundance of ethics. Further, the entire industry has historically been dominated by a “drill at all costs” mentality, with little regard to returns on capital. That is, until recently, as social concerns have helped propel both a sell-off in oil and gas company stock prices and a massive reduction in capital expenditures. The lack of capital expenditures has created a favorable environment for higher commodity prices. As a result, we are beginning to see the sector as a more appealing hunting ground.
The move from fossil fuels may be inevitable, but it is in no way imminent, regardless of the political or social pressures demanding otherwise. While renewable energy sources will continue to take “market share” from fossil fuels, even the most ardent renewables supporters acknowledge that oil and gas will continue to be needed for at least the next 30 years to bridge the gap to even the most optimistic projections of a complete shift to renewables.
We recently purchased shares of Canadian Natural Resources (CNQ), a diversified energy company that specializes in the acquisition, exploration, development, production, and sale of crude oil and natural gas. We consider CNQ to be one of the few companies in the industry that never needed to undergo either a capital allocation or ethical transformation. The company has long nurtured a culture of continuous improvement, emphasizing cost control to drive strong operational and financial results while working to maximize shareholder value…” (Click here to read the full text)
8. Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Holders: 43
Barrick Gold Corporation (NYSE:GOLD) is involved in the exploration, development, production, and sale of gold and copper properties globally. The company also explores and sells silver and energy materials. The company was founded in 1983 and is based in Toronto, Canada. On February 14, Barrick Gold Corporation (NYSE:GOLD) declared a quarterly dividend of $0.10 per share, in line with previous. The dividend is payable on March 15, to shareholders of record on February 29. The company has also introduced a new $1 billion share repurchase program. This initiative will extend over the next 12 months, enabling the company to repurchase its common shares at prevailing market prices. Barrick Gold Corporation (NYSE:GOLD) is one of the best Canadian stocks to monitor.
According to Insider Monkey’s fourth quarter database, 43 hedge funds were long Barrick Gold Corporation (NYSE:GOLD), compared to 36 funds in the last quarter.
Old West Management made the following comment about Barrick Gold Corporation (NYSE:GOLD) in its Q4 2022 investor letter:
“Barrick Gold Corporation (NYSE:GOLD) is the second largest gold miner in the world, with operations in the U.S., Canada, Africa, South America and more. Barrick is also a major copper producer. Former Goldman Sachs executive John Thornton took control of the company in 2012 and quickly realized he wanted someone with a mining background to run the company. Mark Bristow, at that time CEO of Randgold, was considered one of the best gold mining executives in the world. Thornton wanted Bristow so badly Barrick bought Randgold in 2018. Bristow, who is South African, had extensive experience operating mines throughout Africa, and in fact would fly his own single engine plane to visit mines. He has his PhD in Geology, and he has flourished running Barrick the past five years.
Barrick is estimated to have $1.6 billion of net income this year on $11.5 billion of revenue. Net Income has been growing 15% per year. The stock trades at $19.00 per share which is 16 times forward earnings, and the stock has a 3.15% dividend yield. Barrick has a fortress balance sheet with $5.7 billion in cash and $5 billion of long term debt, which is only one time EBITDA.”
7. Agnico Eagle Mines Limited (NYSE:AEM)
Number of Hedge Fund Holders: 43
Agnico Eagle Mines Limited (NYSE:AEM) is a gold mining company engaged in the exploration, development, and production of precious metals. The company operates mines in Canada, Australia, Finland, and Mexico, and conducts exploration and development activities in Canada, Australia, Europe, Latin America, and the United States. Agnico Eagle Mines Limited (NYSE:AEM) is one of the top Canadian stocks to invest in.
On February 16, Agnico Eagle Mines Limited (NYSE:AEM) declared a quarterly dividend of $0.40 per share, in line with previous. The dividend is payable on March 15, to shareholders on record as of March 1.
According to Insider Monkey’s fourth quarter database, 43 hedge funds were long Agnico Eagle Mines Limited (NYSE:AEM), compared to 38 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the biggest stakeholder of the company, with 6.2 million shares worth $341 million.
Old West Management made the following comment about Agnico Eagle Mines Limited (NYSE:AEM) in its Q4 2022 investor letter:
“Agnico Eagle Mines Limited (NYSE:AEM) is the third largest gold miner in the world with mines in Canada, Australia, Finland, and Mexico. Although we have long respected the company, we became shareholders when they acquired our portfolio holding, Kirkland Lake Gold. Agnico chairman Sean Boyd is one of the most respected executives in the mining industry. He was appointed CEO in 1998 and was recently appointed Executive Chairman. Boyd is a large shareholder and perfectly fits our owner/manager role. This year the company is projected to make nearly $1 billion in net income on $5.8 billion in revenue with $758 million of free cash flow. Net income has been growing 15% per year for several years. Agnico has a fortress balance sheet with $1.3 billion of long term debt, which is only 2 times EBITDA, and $820 million cash in the bank. The stock trades at $55 per share, which is 26 times earnings with a 2.9% dividend yield.”
6. Waste Connections, Inc. (NYSE:WCN)
Number of Hedge Fund Holders: 45
Waste Connections, Inc. (NYSE:WCN) specializes in providing non-hazardous waste collection, transfer, disposal, and resource recovery services in the United States and Canada. The company caters to residential, commercial, municipal, industrial, and exploration and production (E&P) sectors. On February 13, Waste Connections (NYSE:WCN) declared a C$0.285 per share quarterly dividend, in line with previous. The dividend is distributable on March 13, to shareholders on record as of February 28.
According to Insider Monkey’s fourth quarter database, 45 hedge funds were long Waste Connections, Inc. (NYSE:WCN), compared to 38 funds in the prior quarter. Bill & Melinda Gates Foundation Trust is the largest stakeholder of the company.
In addition to Shopify Inc. (NYSE:SHOP), Teck Resources Limited (NYSE:TECK), and Canadian Pacific Kansas City Limited (NYSE:CP), Waste Connections (NYSE:WCN) is one of the top Canadian stocks to monitor. Waste Connections (NYSE:WCN) ranks 6th on our list.
ClearBridge Select Strategy made the following comment about Waste Connections, Inc. (NYSE:WCN) in its Q3 2023 investor letter:
“Our largest new addition was Waste Connections, Inc. (NYSE:WCN), a durable compounder in the industrials sector. WCN is a Canada-based waste management provider that continues to grow through accretive acquisitions. The company could see better-than-expected margin expansion over the next several years, driven by a combination of recovering recycled commodities and renewables credits, greater than normal pricing power due to lagged inflation-index realization and improved labor costs and utilization driven by lower labor turnover.”
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Disclosure: None. 14 Best Canadian Stocks To Buy and Hold In 2024 is originally published on Insider Monkey.