5 Best Canadian Stocks To Buy and Hold In 2024

In this article, we discuss 5 best Canadian stocks to buy for 2024. If you want to read our discussion on the Canadian economy, head directly to 14 Best Canadian Stocks To Buy and Hold In 2024. 

5. Canadian Pacific Kansas City Limited (NYSE:CP)

Number of Hedge Fund Holders: 49

Canadian Pacific Kansas City Limited (NYSE:CP) owns and operates a transcontinental freight railway network in Canada and the United States. The company specializes in transporting bulk commodities like grain, coal, potash, fertilizers, and sulphur, as well as merchandise freight like energy products, chemicals, plastics, metals, minerals, consumer goods, automotive, and forest products. Canadian Pacific Kansas City Limited (NYSE:CP) is one of the best Canadian stocks to monitor. 

On January 30, Canadian Pacific Kansas City Limited (NYSE:CP) reported a Q4 non-GAAP EPS of C$1.18 and a revenue of C$3.78 billion, up 53.7% on a year-over-year basis. The company also declared a C$0.19 per share quarterly dividend, in line with previous. The dividend is payable on April 29, to shareholders on record as of March 28. 

According to Insider Monkey’s fourth quarter database, 49 hedge funds were long Canadian Pacific Kansas City Limited (NYSE:CP), compared to 52 funds in the prior quarter. 

Pershing Square Holdings made the following comment about Canadian Pacific Kansas City Limited (NYSE:CP) in its first half 2023 investor letter:

Canadian Pacific Kansas City Limited (NYSE:CP) is a high-quality business with significant earnings growth potential that operates in an oligopolistic industry with considerable barriers to entry and significant pricing power due to its high quality competitive transportation offering. After receiving regulatory approval from the Surface Transportation Board on March 15, Canadian Pacific closed the acquisition of Kansas City Southern on April 14th and renamed the combined company Canadian Pacific Kansas City.

CPKC is a high-quality business with significant earnings growth potential that operates in an oligopolistic industry with considerable barriers to entry and significant pricing power due to its high quality competitive transportation offering. After receiving regulatory approval from the Surface Transportation Board on March 15, Canadian Pacific closed the acquisition of Kansas City Southern on April 14th and renamed the combined company Canadian Pacific Kansas City. …” (Click here to read the full text)

4. Cenovus Energy Inc. (NYSE:CVE)

Number of Hedge Fund Holders: 50

Cenovus Energy Inc. (NYSE:CVE) is involved in the development, production, refining, transportation, and marketing of crude oil, natural gas, and refined petroleum products in Canada and internationally. The company operates Oil Sands, Conventional, Offshore, Canadian Refining, and U.S. Refining segments. Cenovus Energy Inc. (NYSE:CVE) ranks 4th on our list of the best Canadian stocks. On February 15, the company declared a C$0.14 per share quarterly dividend, in line with previous. The dividend is payable on March 28, to shareholders on record as of March 15. 

According to Insider Monkey’s fourth quarter database, 50 hedge funds were long Cenovus Energy Inc. (NYSE:CVE), compared to 41 funds in the last quarter. Israel Englander’s Millennium Management is the largest stakeholder of the company, with 16.5 million shares worth over $275 million. 

L1 Long Short Fund made the following comment about Cenovus Energy Inc. (NYSE:CVE) in its Q3 2023 investor letter:

“Cenovus Energy Inc. (NYSE:CVE) (Long +23%) shares rallied as WTI oil prices rose to ~US$91/bbl over the month, the highest level since November 2022. The company also had tailwinds from higher refinery margins, particularly in North America which remains their key exposure. Cenovus continues to generate strong free cash flow at current oil price levels, with the long-life nature of its oil sands assets and its low cost of production providing a break-even oil price at around ~US$40/bbl. We estimate the company can reach its net debt target in early CY24, enabling a step-up in shareholder returns through on-market share buybacks.”

3. Lululemon Athletica Inc. (NASDAQ:LULU)

Number of Hedge Fund Holders: 52

Lululemon Athletica Inc. (NASDAQ:LULU) design, distribute, and retail athletic apparel, footwear, and accessories under the Lululemon brand for both women and men. It is one of the top Canadian stocks. On December 7, Lululemon Athletica Inc. (NASDAQ:LULU) reported a Q3 non-GAAP EPS of $2.53 and a revenue of $2.2 billion, outperforming Wall Street forecasts by $0.25 and $10 million, respectively. Revenue for the quarter increased 18.3% on a year-over-year basis. 

According to Insider Monkey’s fourth quarter database, 52 hedge funds were bullish on Lululemon Athletica Inc. (NASDAQ:LULU), compared to 61 funds in the last quarter. D E Shaw is a signifncat position holder in the company, with a stake worth $307 million. 

Kinsman Oak Capital Partners made the following comment about Lululemon Athletica Inc. (NASDAQ:LULU) in its first quarter 2023 investor letter:

“What is relatively new, however, is that we are beginning to see substantial write-downs and impairment charges. For instance, Lululemon Athletica Inc. (NASDAQ:LULU) is already exploring a sale of Mirror, the struggling fitness technology company it bought less than three years ago for half a billion dollars. Lululemon executives recently announced a $433 million impairment charge on the business (-89%). That is not an insignificant amount of money.”

2. Teck Resources Limited (NYSE:TECK)

Number of Hedge Fund Holders: 68

Teck Resources Limited (NYSE:TECK) is engaged in exploring for, acquiring, developing, and producing natural resources across Asia, Europe, and North America. The company operates through Steelmaking Coal, Copper, Zinc, and Energy segments. Teck Resources Limited (NYSE:TECK) is one of the best Canadian stocks to buy. On February 22, the company declared a C$0.125 per share quarterly dividend, which is payable on March 28 to shareholders on record as of March 15. The company’s board has given approval for the management to buy back Class B subordinate voting shares, with an authorization of up to $500 million.

According to Insider Monkey’s fourth quarter database, 68 hedge funds were long Teck Resources Limited (NYSE:TECK), compared to 75 funds in the earlier quarter. Eric W. Mandelblatt’s Soroban Capital Partners is the leading stakeholder of the company, with 8.8 million shares worth $371.8 million. 

1. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders: 68

Shopify Inc. (NYSE:SHOP) is a Canadian commerce company that empowers merchants to showcase, manage, market, and sell products through web and mobile storefronts, physical retail locations, social media, and online marketplaces. Shopify Inc. (NYSE:SHOP) ranks 1st on our list of the best Canadian stocks. On February 13, the company reported a Q4 non-GAAP EPS of $0.34 and a revenue of $2.14 billion, outperforming Wall Street estimates by $0.04 and $70 million, respectively. 

According to Insider Monkey’s fourth quarter database, 68 hedge funds were long Shopify Inc. (NYSE:SHOP), compared to 69 funds in the last quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 7 million shares worth $546.5 million. 

Rowan Street Capital stated the following regarding Shopify Inc. (NYSE:SHOP) in its 2023 annual investor letter:

“Shopify Inc. (NYSE:SHOP) is an all-in-one e-commerce platform that empowers businesses of all sizes to build, manage, and grow their online stores. Founded in 2006, Shopify now holds a commanding >10% market share in US e-commerce.

The value of Shopify lies in its simplicity for merchants to easily start and scale their business, so much so that merchants fall in love with their solutions and never want to leave, no matter how big they get. They understand that as they grow and confront new challenges, Shopify will solve their problems so they can take their business to the next level. That is the power of Shopify’s flywheel.

We have owned Shopify’s stock since 2022. Our average cost basis is $60. Following our purchase, the stock hit a low of $26 in October 2022. Just 15 months following those lows, Shopify stock is now trading at $80 (a 200% rebound) as investors celebrated the decision to sell its capital intensive logistics business, which was largely expected to cost billions of dollars to build out — a move that enables Shopify to retain its original, asset-light business model. Additionally, while many tech companies struggled in the face of macroeconomic challenges, Shopify defied expectations by maintaining robust revenue growth in 2023. Revenue increased by 25% year-over-year in the most recent quarter, with gross profit growing by a healthy 36%. We are now sitting on a +35% unrealized gain on our position after owning the stock for almost 2 years. Not a bad return, but what a wild ride it has been. Just another example that volatility is the price of admission in this business.”

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