Best Canadian Stocks to Buy Right Now - YouTube

Hi there! I'm Irk and this is my channel Get Irked  where I teach you how to invest for the long term.

In today's video, we're going to talk about the  best Canadian stocks to buy right now. Many people  

don't realize that I am Canadian until I start  slipping in words like out, about, tomorrow,  

and sorry without noticing it. However, one of  the most regular requests that I get from my  

readers and viewers is "what are the best Canadian  stocks to buy right now?" And, before my American  

counterparts turn off, these aren't just good  Canadian stocks, these are good stocks for anyone.  

I'm going to cover all five of these companies  individually and we're going to do it from least  

speculative to most speculative. But, like I said,  if you bought all five it's still a well-rounded  

portfolio. Before we get started, if you could hit  the like button and subscribe that would really  

help me out. I'm still just getting started on  YouTube and every like and subscribe really helps.  

Also, remember, I'm not a professional investment  advisor. I'm just some crazy Canadian who really  

likes to invest and spends a lot of time on it,  so take that into consideration if you decide to  

purchase any of the positions we discuss in this  video. Now, with that, grab your Labbatt Blue and  

your bowl of poutine and let's get started!  First up, the Toronto Dominion Bank (TD).  

Toronto Dominion isn't just a Canadian-based  bank, it's one of the best banks in the world.  

Let's go into the details a little bit. As you can  see, the Toronto Dominion bank has an earnings per  

share of $6.22, a P/E ratio of 10.72 and it pays  a dividend of $2.53 which works out to an annual  

yield of about 3.8% at its current price. Coming  back to that P/E ratio - a fairly valued company  

is usually around 20, so if you're less than  20, that means you're almost undervalued. Now,  

the banks are a little bit different, however  that is a really reasonable P/E and this is a  

really reasonable overall portfolio position here.  I really like the 3.8% yield - that's huge! Now,  

let's go to the charts. This is Toronto Dominion's  chart and we're going to start at the base of  

the pandemic and draw a Fibonacci Retracement to  see what levels we have for buying in stages. In  

TradingView, hit Alt-F, draw from the base of the  move to the high of the move, and that will give  

you the different levels of Fibonacci Retracement.  As a quick refresher, Fibonacci Retracement is  

based on the patterns that we see in nature that  also repeat themselves in the stock market. You  

can see its high was $73.85, but just like the  rest of the financial sector, TD has pulled back.  

TD pulled back about 14% where it is currently  is slightly above the 23.6 retracement. However,  

this isn't a bad starting point. If you were  going to Buy-in-Stages, you could pick to either  

buy 25% or 50% of your position right above these  levels and then save the rest of the cash to buy  

in stages on the way down. You can either follow  the retracement directly at $58.45 for the next  

buy purchase or you can see down here that we've  got a little bit of support right about there  

which is $56.64. This wouldn't be a bad place to  do your second purchase. Just repeat from there.  

You can see a 50% retracement is $53.70 and a  61.8% retracement is $48.94 and so on. You could  

even calculate in to ensure that you have some  money left over down here at the bottom at $33.74.  

Next up, Canadian Tire Corporation ticker  symbol CTC. If you're not Canadian,  

you're probably immediately thinking that this is  a tire and auto parts store and you'd be right,  

but only partially. Imagine if an auto parts  store mixed with a Costco and a grocery store and  

a whole bunch of other stores so you could just  go to one place for pretty much everything. Then,  

imagine a company that has excellent management,  incredibly loyal customers, and locations  

throughout the entire country, and you have the  outperforming retailer that is Canadian Tire.  

When we go into the details, you can see that  Canadian Tire has an earnings per share of $15  

and a P/E ratio of 17.67. That makes it a  bit more expensive than Toronto Dominion,  

but it's still not overvalued by any stretch.  In addition to that, it pays a dividend of $4.70  

which works out to 1.88% annually at the prices of  this video. Now, let's go to the charts. Just like  

we did last time, let's start at the base of the  pandemic and draw a Fibonacci Retracement all the  

way up to its recent high we can see that Canadian  Tire has sold off a bit, dropping about 10% from  

its recent high. Just like our other positions,  you can Buy-in-Stages and you can choose whether  

you want to start with a 25% or 50% position.  As you can see, the 200-day moving average is at  

$218.38 which makes a good second purchase. Now,  it's possible it'll find support around the 38.2%  

retracement so it all depends on exactly how  conservative or aggressive you want to be  

when you're building this position from there.  You'll see that we have support at about $192,  

we have support down here as well at $163,  and then the pandemic bottom was $140. so you  

could choose how to be able to purchase in stages  based on how aggressive or conservative you want  

to be. The pandemic has proven that retailers like  Canadian Tire are going to last for the long-term,  

so I wouldn't anticipate seeing $140 again unless  we have a really big black swan event. Next up,  

Barrick Gold ticker symbol GOLD. Long-time viewers  of my channel would be familiar with this one  

as I do hold a position in Barrick Gold.  Not only is Barrick Gold based in Canada,  

Barrick Gold is the best-in-breed gold miner.  In today's environment of all the governments  

printing their money and causing inflation,  having a gold miner in your portfolio is a really  

reasonable thing to do to hedge against potential  high inflation. And, as far as gold miners go,  

they come no better than Barrick Gold. Let's  look at the details. You can see that Barrick  

Gold has an earnings per share of $1.38 and a  P/E ratio of 15.68. Now, although that makes this  

better valued comparatively to Canadian Tire, I  don't usually compare P/E ratios of two companies  

from two different industries. For one thing, gold  mining is definitely more speculative than retail!  

Now, going back to the details - one of the great  things about Barrick Gold and makes it a better  

option than holding paper gold is there's a yield,  and, in Barrick's case that yield is substantial,  

paying $0.92 per share which currently works  out to almost 4.25%. Now, let's look at the  

charts once again. We're going to do a Fibonacci  Retracement from the base of the pandemic to the  

high in the past year. As of the recording of this  video, gold has become somewhat unpopular which  

makes it a decent time to start buying. You can  see that Barrick Gold is still under its 200-day  

moving average of $22.65 and you can also see  that this 200-day moving average provides a lot  

of resistance. As Barrick Gold reaches it, it gets  pushed back down. It's a little bit undervalued  

right now. It's been under selling pressure so  this wouldn't be a bad place to start a 25% or 50%  

position. Once again, we'll go back and we'll try  and find some levels where we might do additional  

purchases. We've got one here around $18.65,  we've got a good one down here at $15.47,  

and then you can see the pandemic low of  $12.65. Unlike a lot of the other positions  

in this portfolio which are unlikely to see their  pandemic lows, because of the volatility of gold,  

it's not quite the same thing for a gold miner,  so, it is possible that Barrick Gold could sell  

off down to that $12.65 mark. As always, when  it comes to Buying-in-Stages it's entirely up to  

you how aggressive or conservative you want to  be. If you want to ensure that you have a full  

position before we get down to this level, that's  entirely up to you. It's one of the great things  

about Buying-in-Stages - it can be customized to  each individual investor. Next up, Canopy Growth  

Corporation (CGC). Canopy Growth Corporation is  the leader and the best-in-breed when it comes to  

recreational cannabis and is an excellent play  both on recreational marijuana as well as CBD  

products. In addition to being Canadian-based,  Canopy Growth has the backing of Constellation  

Brands (STZ), a major alcohol manufacturer in the  United States who owns a significant percentage  

of Canopy and also provides funding. As we move  toward federal legalization in the United States,  

one of the key elements that's going to make  a successful cannabis play is whether or not  

they can survive long enough in terms of their  finances. Because Canopy Growth is so well-backed,  

it's a really good play. I think it's the  best-in-breed, and, again, I hold this one in  

my own portfolios. Let's look at the details. When  you look at Canopy Growth, you can see that it's  

got a price of about $18.31 per share. It has an  EPS of -$3.77 which means it's losing money each  

time it reports earnings and that's because it's  having to invest in the business. Naturally, that  

also means it doesn't have a dividend or a yield,  and it doesn't have a P/E ratio because it has no  

earnings so there's no price to earnings ratio.  Let's take a look at the charts. When it comes to  

Canopy Growth, I'm going to switch to the weekly  chart because it does a lot of interesting things.  

Because it's so speculative and the whole concept  of recreational cannabis is still not legal on  

the federal level, you can see that it jumps  around quite a bit. It didn't come public in the  

United States until May of 2018 and that's when  I bought in. I think it was about the third week  

of May when Canopy Growth came public so we'll  just start around $27.25. And, you can see that  

Canopy rocketed to a high of $59.25. During 2019,  people started realizing that maybe everybody was  

a little over-hyped on cannabis and it really  sold off dropping, down to a low of $13.81.  

When we went into the pandemic, that low didn't  hold, and Canopy Growth dropped all the way down  

to $9.00 even. From there, it rocketed back up,  hitting a high of $56.50, when, earlier in 2021,  

the meme stocks got a hold of it and it got pumped  up with all the short sellers being squeezed right  

out of it only for it to collapse back down again  to a low currently of about $18.05. As volatile  

as Canopy Growth is, you can see on the daily  chart that it's oversold or at least approaching  

oversold on the Relative Strength Index (RSI) on  the daily chart and it's nearing it on the weekly  

chart. What does that mean? It means that it's  kind of hated right now which means that right  

now is a decent time to start a position in Canopy  Growth remembering, of course, that it could drop  

50% or more from its current price. Once again,  whether you decide to buy with a 25% position or  

50% position or even a 10% position is entirely  up to you. You have to determine your risk  

appetite. Also, as I said earlier, this is one  of the more speculative plays. In fact, it's the  

second most speculative play I'm going to talk  about. Because of what I've already gone through,  

you can see we already have different kinds  of stages where you could add to a position.  

You can also see that in the Fibonacci Retracement  pattern we've already broken the 78.6% line.  

In a circumstance like this, if you wanted to have  more levels using Fibonacci Retracement, you can  

use the low and go to a different high. So, here  we're going to use the low of the pandemic again  

and go to this high before it pulled back, and  you can see that we have levels at $17.15, $15.60,  

$14.04, $11.82, and then $9.00. Once again, Canopy  is pretty speculative, but, that being said, I do  

believe that the federal government in the United  States will legalize cannabis at some point,  

so I think this is a great long-term play.  Last up, the most speculative play that I have,  

and it's not speculative because I don't have  faith in the company, it's just it's a growth-tech  

stock and it's huge - it's Shopify ticker symbol  SHOP. If you're not familiar with Shopify,  

it is the ultimate e-commerce technology play. It  is back-boning almost every e-commerce website:  

it helps small companies get started with stores,  it helps large companies get started with stores,  

and it's all-around just a great company.  Because it's new, because it's tech, and because  

it's growth, it's hugely expensive - both in terms  of a share price of $1500+, but, as you can see,  

its P/E ratio of 79.8 makes it significantly more  expensive than all four of the other positions.  

However, when you have an excellent company like  Shopify, sometimes, you just have to pay up.  

Currently, because it's a growth company, Shopify  does not pay a dividend. I don't anticipate that  

it ever will. In fact, with a growth company, you  shouldn't want a dividend; you should want them to  

reinvest in the company itself. Let's go to the  charts. You can see with this chart that this is  

one of those stocks that goes from the lower-left  to the upper-right in a big hurry. Drawing from  

the pandemic bottom to its recent high, you can  see that Shopify went from $305 at the pandemic  

lows to $1650, its recent all-time high. That's an  increase of 440% in a little over a year! When we  

look at the Relative Strength Index (RSI),  you can see that it's not quite overbought  

right now. However, switch to the weekly and  we're much closer to overbought territory,  

as well as the monthly - we are supremely  overbought now! Does that mean that Shopify  

is due for an epic sell-off? Not necessarily,  however, when you're dealing with growth tech  

stocks you have to remember they can move a lot  more than old slow companies. Looking at the  

past of its monthly Relative Strength Index, you  can see that it remains overbought. Even when it  

gets a little less overbought, it typically gets  right back on the horse and continues going higher  

and higher. So, this is one of those stocks where  you hold your nose and start your position. Going  

back to the daily, we're currently about 5-10%  off the high now. With a share price this big,  

if you're a new investor, Shopify might seem  a little daunting because one share is $1500,  

but you have to remember fractional share trading  is real. So, just like with every position,  

you want to think in terms of what percentage of  your overall portfolio do you want it to be? If  

you have a $15,000 portfolio with five positions  in it, that means each position is about $3,000  

which means two shares of Shopify is all you  could actually have in your portfolio. But,  

if you think of it in terms of fractional shares  instead of whole shares, you can buy more on the  

way down instead of having to think about buying  a $1500 share at a time. Once again, just like the  

other stocks in the portfolio, let's look and see  some different levels. You can see that $1332.65  

is a Fibonacci Retracement level right about here,  but you can also see that it regularly pulls back  

to the 200-day moving average which is currently  at $1210.00. So, if you did your first buy at  

about $1500, you can see right above the 200-day  moving average that we start getting support,  

so you might consider doing your second buy  somewhere around $1230. You can also see  

by looking at Shopify's history that when it  does fall down and touch or break through the  

200-day average, it doesn't do it very long  before recovering and moving to new highs.  

Overall, Shopify would make an excellent  tech position in any portfolio. Now, granted,  

it feels really overbought, but it's always going  to feel that way just like Amazon (AMZN), just  

like Apple (AAPL), just like a lot of other tech  companies - they feel overbought, you buy them,  

and they end up going higher. Thank you for  watching! Please like and subscribe and leave  

other ideas for videos in the future in the  comments. I'll see you in the next video!