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17 hours ago
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This Under-the-Radar Energy Stock Climbed 10% Last Month: Is it a Buy Now?
Written by Chris MacDonald at The Motley Fool Canada Most energy investors rightly view the Canadian stock market as a treasure trove of investable options to choose from. It is. However, some companies are clearly better than others, and finding the key opportunities that can deliver solid long-term returns has become even more difficult right now. That's because while many oil and gas players are considered value stocks by most investors, it's also true that there are wide discrepancies in both valuations and fundamentals that need to be considered. In this article, I'm going to dive into Parex Resources (TSX:PXT) and its impressive 10% move higher over the past month. Let's dive into whether this move is sustainable and what's driving outsized investor demand in this particular energy stock. Strong fundamentals When a company like Parex reports an impressive earnings beat, many start to pay attention to this name. Accordingly, I think this stock's recent surge does appear to be well-supported, and makes sense in the context of some rather impressive numbers this past quarter. In the company's second quarter, Parex brought in $1.08 in free funds from operations (FFO) per share, translating to more than $100 million. These numbers are extra impressive, given the rather challenging macro backdrop facing the company, and marginally lower production, which some thought could have led to a decline on this front. From a revenue standpoint, Parex has brought in $1.2 billion over the past year, making its current market capitalization of around $1.5 billion seem very reasonable. On an annualized FFO basis, this stock is trading at around four times FFO. That's cheap, even for the energy sector. What to make of Parex moving forward? I think Parex Resources presents a compelling investment opportunity for long-term investors who want some energy exposure in their portfolio. With some analysts suggesting this stock could have as much as 75% upside over the course of the next year based on its discounted cash flows alone, if we do see a resurgence in energy prices, this is a stock that could easily provide a double up over a medium-term time frame. Of course, the energy sector is a relatively risky one to invest in, and there's always the risk that oil prices will plunge in the face of a recession. But with recession worries tempered of late, this is a stock I think could have the momentum to continue running. The post This Under-the-Radar Energy Stock Climbed 10% Last Month: Is it a Buy Now? appeared first on The Motley Fool Canada. Should you invest $1,000 in Shopify right now? Before you buy stock in Shopify, consider this: The Motley Fool Stock Advisor Canada analyst team identified what they believe are the 15 best stocks for investors to buy now… and Shopify wasn't one of them. The 15 stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $24,427.64!* Now, it's worth noting Stock Advisor Canada's total average return is 94%* – a market-crushing outperformance compared to 61%* for the S&P/TSX Composite Index. Don't miss out on our top 15 list, available when you join Stock Advisor Canada. See the 15 Stocks * Returns as of July 15th, 2025 More reading 10 Stocks Every Canadian Should Own in 2025 3 Canadian Companies Powering the AI Revolution Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Parex Resources. The Motley Fool has a disclosure policy. 2025
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26-07-2025
- Business
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3 Canadian Tech Stocks to Buy Now for High Growth Potential
Written by Chris MacDonald at The Motley Fool Canada The Canadian tech sector is chock full of growth stocks long-term investors have done well owning, particularly during this most recent bull market following the Global Financial Crisis. Indeed, the tech sector continues to be on a roll, as investors look for any way to play the surge in adoption AI should bring to many top technology platforms. I'm going to highlight three such players I think could have massive upside on the TSX, and why now is the time to consider diving into these particular names. Without further ado, let's dive in! Open Text Open Text (TSX:OTEX) is among the leading Canadian software providers that's yet to see a significant uptick despite its strong fundamentals. This is a stock that's down over the past year, and down roughly 30% over the past five years. No doubt, some investors may be wondering why this stock made the list to begin with. For one, I think Open Text has among the most attractive valuations in its sector, with a price-earnings ratio of just 12 times. That's less than half the industry average, and one that's not pricing in a heck of a lot of growth moving forward. Now, the company did see revenue decline by around 13% on a year-over-year basis, so some of this discount is warranted. But for long-term investors who believe the company can return to growth, it may be worth picking up shares before this stock rebounds. That's the approach I think makes the most sense right now. Constellation Software Constellation Software (TSX:CSU) is the next top tech stock on my list. That's for good reason. The stock chart above tells a story that I think is really compelling. The company's long-term growth trajectory is truly world-class, and Constellation Software remains one of my top bullish picks in this sector for this reason. Of course, past performance is no guarantee of future results, and plenty will need to go right for the company to see the kind of continued growth many investors are expecting. That said, the company's long-term growth profile has been driven by an acquisition model that still holds. Constellation continues to acquire and integrate small and mid-cap tech companies into its portfolio, improving their ROI as the company grows. Until the tech market becomes less fragmented and owner-operators choose not to sell, this is a stock to simply hold and buy more on dips. Kinaxis As far as Canadian tech stocks are concerned, Kinaxis (TSX:KXS) is the latest addition to my watch list of stocks I think investors may want to have a closer look at. Kinaxis' upside really comes from the company's recent AI integrations, with its core platform seeing strong growth in recent quarters. The company's revenue is expected to grow at a double-digit pace in the coming years, with recent quarters seeing robust growth of a similar magnitude. Indeed, if the AI revolution is as big as everyone's saying and these are the results of the company's efforts thus far, I think there's more upside on the table long term. The company's valuation is much steeper than that of most in the Canadian tech sector. But with the sort of fundamental growth drivers Kinaxis has at play, there are few better options in the market right now in my view. The post 3 Canadian Tech Stocks to Buy Now for High Growth Potential appeared first on The Motley Fool Canada. Should you invest $1,000 in Constellation Software right now? Before you buy stock in Constellation Software, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Constellation Software wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $24,927.94!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 3 Canadian Companies Powering the AI Revolution A Commonsense Cash Back Credit Card We Love Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Software and Kinaxis. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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15-07-2025
- Business
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Is Growth Investing Still a Thing in 2025? 3 Considerations for Canadian Investors
Written by Chris MacDonald at The Motley Fool Canada Different investors have different goals, and that makes writing broad-based pieces around investing themes difficult. Some investors are much more concerned with capital preservation than growth. Companies and assets that pay consistent and reasonable yields may be much more attractive to such investors than those that promise greater future growth. That said, one of the key elements of long-term investing in the markets is benefiting from the capital appreciation upside equities provide. Without this growth, one could argue there's no meaningful reason to own such equities. The good news for Canadian investors is that there's plenty of reason to believe the long-term growth trends we've seen play out will continue. Here are three considerations I think all investors should keep in mind, especially right now. Concerned about losing your job to an AI bot? Think that your industry could be at risk of disruption? There's good reason to think this way. Disruption is everywhere. And by most accounts, it's a trend that's only accelerating. For those who don't want to have their lives completely turned upside down by the next technological revolution (which is clearly underway), benefiting from the rise of AI and new technologies is possible by investing in the companies at the forefront of this revolution. In the Canadian stock market, there happen to be a number of top companies worth considering on this front. Finding companies that have the potential to not only grow alongside the market but also provide market-beating growth is really the name of the game for growth investors. On that front, investors have to scour the TSX for the best opportunities. That's because many of the top Canadian blue-chip stocks investors often opt for do resemble steady, consistent options. Many of the top Canadian stocks have rock-solid balance sheets and reasonable dividend yields, but these attributes can come alongside slower growth. Moving outside of the 'traditional' bucket of Canadian stocks investors are used to can be difficult. But there are a number of top companies that exhibit the ability to be economically resilient (as was the case during the most recent tariff slump), while also continuing to grow through uncertain times. Those are the sorts of stocks growth investors should be after. Valuation multiples, growth rates, and plenty of other variables investors typically rely on to model out what a given stock is worth at a point in time are typically always in flux. Trying to pin down what a company should be worth based on its historical performance can be tricky. Thus, I do think finding growth stocks with some semblance of stability is important. In this market that's continuing to shift in an ever-quicker fashion, finding the companies investors can sleep well on while owning them is important. When we look at growth stocks, this idea is one I think is worth doubling down on. The post Is Growth Investing Still a Thing in 2025? 3 Considerations for Canadian Investors appeared first on The Motley Fool Canada. Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $50 a share. Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune. Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now. Claim your FREE 5-stock report now! More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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14-07-2025
- Business
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2 Canadian Blue-Chip Stocks to Buy Before it's Too Late
Written by Chris MacDonald at The Motley Fool Canada When some investors think of the Canadian stock market, energy and resource companies may be the first that come to mind. Canada does have a very resource-centric economy, and as such, this is the sector that often gets the closest look from international investors looking to diversify into TSX-traded stocks. That said, there are a number of other high-quality blue-chip stocks I think are worth considering. In my view, the following two names are among the best options for investors looking for solid total returns over the long haul. These are companies that not only provide solid growth upside over the long term, but are also among the top dividend stocks I've got my eye on right now. I continue to hammer the table on utility giant Fortis (TSX:FTS) as a great long-term investment for those looking for rock-solid total returns. Given the company's core business model of providing essentials to its core residential and commercial customer base (no one can go without lights and heat for very long), Fortis continues to earn very stable cash flows that it returns to investors over time. Aside from being a classic defensive stock for investor portfolios, Fortis also has the backing of some very strong fundamentals investors can rely on for continued revenue and earnings growth. With the company's earnings per share rising to $1.00 from $0.93 in the same quarter the year prior, and revenue also increasing by a similar amount, this is a company which should provide roughly 10% overall growth investors can rely on. Over time, Fortis has delivered dividend growth in the 6% range for long-term investors, with an impressive 50-year streak of consecutive dividend hikes. I'd expect that track record to continue, making Fortis's current dividend yield of 3.8% much more impressive on an absolute basis. Another top blue-chip Canadian stock I think can get overlooked relative to other premium names is Brookfield Asset Management (TSX:BAM). The company's business model is a bit more diverse than many TSX-listed stocks. With a portfolio of global alternative assets in a number of in-demand industries, Brookfield has benefited from the rather robust global growth trends we've seen play out since the Great Financial Crisis. Of course, there's always the potential that another recession will be headed our way, and that could impact the company's business. However, Brookfield's historically impressive stability and its broad asset base provide some cushion and diversification for investors seeking such attributes. With a current dividend yield of 3.2%, Brookfield is no slouch in this department either. And with a market capitalization of more than $90 billion and margins of 57% (up from 54% the year prior), this is a stock I think investors can buy and hold with confidence in this current market environment. The post 2 Canadian Blue-Chip Stocks to Buy Before it's Too Late appeared first on The Motley Fool Canada. Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $50 a share. Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune. Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now. Claim your FREE 5-stock report now! More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy. 2025 Sign in to access your portfolio
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14-07-2025
- Business
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Tamarack Valley Energy: Buy, Sell, or Hold in July 2025?
Written by Chris MacDonald at The Motley Fool Canada Among the Canadian energy stocks I don't focus on enough, Tamarack Valley Energy (TSX:TVE) has to be up there on the list. This Canadian oil and gas producer has continued to produce strong results in recent years, with its Clearwater and Charlie Lake operations leading to strong overall production growth over time. As the chart above shows, it's been a wild ride higher for investors over the past five years. Indeed, over this time frame, shares of TVE stock have surged more than 450% at the time of writing. Now, the obvious question moving forward is whether this growth can continue. Let's dive into what Tamarack Valley does and why this stock looks attractive to investors right now, in my view. With any potential new investment, those looking to put capital to work should first assess a given company's underlying fundamentals. On this front, there does appear to be plenty of positives for investors to look at with Tamarack Valley Energy. The company produced strong Greene and earnings growth, with Tamarack Valley's earnings per share surging from a loss of $0.06 in the same quarter a year prior to $0.12 this past fiscal quarter. Additionally, in the first quarter, the company saw its revenue surge to $332 million from $272 million a year prior, as the company's free funds flow doubled on a year-over-year basis. Those are the kinds of numbers investors certainly want to see, particularly in a volatile energy price environment. With strong operational execution, cost discipline, and the success of the company's waterflood and drilling programs leading the way, there should be more positives in store for investors over the long term. There are a number of other fundamental factors I like when I look at Tamarack Valley's balance sheet and overall valuation. On the balance sheet front, the company's debt-to-equity ratio of just 37% is very reasonable, suggesting a prudent use of long-term debt. Additionally, the company has done well to reduce its overall debt burden over time, piling its free cash flow back into debt repayment while also paying investors a hefty dividend for their trouble. With a current dividend yield of 3.2%, Tamarack Valley is a sneaky dividend stock with plenty of growth upside. As the company continues to guide toward 65,000-67,000 barrels of oil equivalent per day in the year to come, there's plenty to like about the company's financial picture. That goes double for those who factor in continued margin improvements from cost reductions and enhanced wellhead realizations over time. The post Tamarack Valley Energy: Buy, Sell, or Hold in July 2025? appeared first on The Motley Fool Canada. Before you buy stock in Tamarack Valley Energy Ltd, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Tamarack Valley Energy Ltd wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $24,927.94!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
