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Yahoo
a day ago
- Business
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This AI Technology Stock Could Be the Best Investment of the Decade
Written by Jitendra Parashar at The Motley Fool Canada If you don't want to get caught reacting to short-term market movements, you may want to invest in long-term growth trends — and few could be as transformative as artificial intelligence (AI). The global AI industry is expected to generate trillions in economic value over the coming years by reshaping everything from enterprise software to automation and cybersecurity. For investors, the goal should be to find companies that aren't just experimenting with AI but are integrating it deeply into scalable, revenue-generating platforms. In this article, I'll highlight a Canadian AI technology stock that could be one of the best investments of the next decade. If you're looking for the top AI technology stock to ride the next wave of digital transformation, Open Text (TSX:OTEX) deserves a closer look. Open Text is currently playing a central role in enterprise AI adoption, helping global businesses automate operations, boost cybersecurity, and extract real-time insights from massive amounts of data. This software firm mainly delivers AI-powered solutions across content management, cloud infrastructure, analytics, and security through what it calls the 'Open Text Aviator' platform. Currently trading at $38.90 per share, OTEX stock has a market cap of slightly over $10 billion and also offers an annualized dividend yield of about 3.7%. While the stock has rebounded by nearly 8% over the last month, it's still down 18% from its 52-week high — making this top AI technology stock look undervalued based on its long-term fundamentals. The recent gains in Open Text stock came after investors reacted positively to its improved margins and strong free cash flow performance. In the most recent quarter (ended in March), it reported US$402 million in operating cash flows and US$374 million in free cash flows, up over 4% and 7% YoY (year over year), respectively. These gains came despite a broader dip in its total revenue, partly due to industry-wide demand volatility and the sale of a business unit that focused on upgrading and connecting older software systems. Nevertheless, the company's cloud revenues have been rising for 17 straight quarters — showing the durability of its subscription model. Notably, Open Text's latest quarterly results reflected ongoing strength in its recurring cloud revenues, even as its total revenue fell on a YoY basis. The company recently launched its new Cloud Editions 25.2 by combining AI, hybrid cloud tools, and cybersecurity features into one enterprise-grade platform. Meanwhile, it's also expanding its business optimization plan with automation and AI investments projected to save up to US$550 million annually. Overall, Open Text is sharpening its focus on high-priority areas like Aviator AI, enterprise content, and next-gen security. Not only could these moves improve its margins, but they may also open up new revenue opportunities in AI-powered solutions. Simply put, Open Text is executing exactly what's needed to thrive in an AI-first era — and that's why it could be the best investment of the decade. The post This AI Technology Stock Could Be the Best Investment of the Decade appeared first on The Motley Fool Canada. Before you buy stock in OpenText, 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 OpenText 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 $21,345.77!* 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 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Jitendra Parashar has positions in Open Text. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025 Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
I'd Put $7,000 in This Canadian Bank for Decades of Growth and Income
Written by Amy Legate-Wolfe at The Motley Fool Canada When deciding what to do with a lump sum of savings, it's tempting to chase fast-moving stocks or new trends. But sometimes the smartest move is the simplest one: putting your money into something that has proven itself for decades. If I had $7,000 to invest today and wanted dependable growth and income for the long haul, I'd put it into Royal Bank of Canada (TSX:RY). It's not flashy, but it's stable, profitable, and shareholder-friendly, exactly the kind of stock that helps you sleep at night. Royal Bank stock is the largest bank in Canada by market cap, serving over 17 million clients across more than 30 countries. It's involved in retail banking, capital markets, insurance, wealth management, and more. That kind of diversification is key when you're looking to invest for decades. If one division has a rough year, another often picks up the slack. And with a business model this wide, Royal Bank stock isn't overly exposed to any single market or sector. As of writing, the stock trades at about $175 per share. RY's 52-week range sits between $180 and $140. Its market cap is over $247 billion, firmly cementing it as one of Canada's top blue-chip names. The bank stock currently offers a dividend yield of roughly 3.5%. That may not seem like much at first glance, but Royal Bank stock has increased its dividend for 12 consecutive years, and it historically delivers a strong total return when you factor in both price appreciation and dividend growth. The company's most recent earnings report from Q2 2025 shows just how solid the foundation is. Revenue came in at $13.5 billion, beating expectations of $13.3 billion. Net income for the quarter was $3.95 billion, which represented a 4% increase from the same period last year. Diluted earnings per share (EPS) came in at $2.76, well ahead of the $2.67 analysts had expected. Digging deeper, it's clear the bank's performance isn't just luck. It posted an efficiency ratio of 52.1%, showing it's operating efficiently while still growing. The bank's return on equity was 16.3%. That tells you how well Royal Bank stock is using shareholder money to generate profits. A number above 15% is generally considered excellent in the banking world. It also reported a common equity tier 1 (CET1) ratio of 13.7%, meaning the bank has a strong capital cushion in place. One of the most exciting developments this year is Royal Bank stock's acquisition of HSBC Canada. The deal was finalized in early 2025 and adds over 700,000 new clients to the bank's already massive customer base. It also adds more than $100 billion in assets, making this one of the largest banking transactions in Canadian history. Now, no stock is without risk. Royal Bank stock is exposed to interest rate changes, economic cycles, and regulatory shifts. But those are part of any investment in the financial sector. What makes Royal Bank stand out is how well it manages those risks. It's been around for more than 150 years and has weathered everything from world wars to financial crises. If the economy slows, Royal Bank has the capital and discipline to ride it out. In short, Royal Bank stock offers a rare combination of safety, income, and growth. It's not the kind of stock that makes dramatic headlines, but it's exactly the kind that builds wealth over time. With a rock-solid balance sheet, reliable earnings, and a generous dividend, it's an ideal place to park long-term savings. For anyone looking to invest $7,000 in a Canadian stock with decades of potential ahead of it, Royal Bank stock is a choice you can feel confident about for the long run. The post I'd Put $7,000 in This Canadian Bank for Decades of Growth and Income appeared first on The Motley Fool Canada. Before you buy stock in Royal Bank of Canada, 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 Royal Bank of Canada 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 $21,345.77!* 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 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Amy Legate-Wolfe 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
Yahoo
2 days ago
- Business
- Yahoo
The Smartest Canadian Stock to Buy With $1,000 Right Now
Written by Amy Legate-Wolfe at The Motley Fool Canada When markets start to feel shaky, many investors head straight for safety. Some go for gold, others hold cash, but many smart Canadians look to real estate. Not just any real estate investment, but ones that provide reliable income, steady growth, and insulation from retail or office volatility. One of the best places to start, especially if you have $1,000 to invest, might be Granite Real Estate Investment Trust (TSX: It's not a household name, but it definitely should be. Granite is a REIT that focuses almost entirely on logistics and industrial properties. So instead of shopping malls or apartment buildings, it owns warehouses and distribution centres. These are the buildings that keep supply chains moving and online orders arriving on time. It's a part of the economy that's become essential, especially as e-commerce continues to boom. With tenants like Amazon and Magna International, Granite's portfolio is both diversified and dependable. As of writing, it owns over 140 income-producing properties spread across Canada, the U.S., and Europe. That geographic spread adds some global resilience, while the tenant list speaks volumes about its reliability. Granite recently released its first-quarter earnings for 2025, and the numbers were strong. Rental revenue came in at $154.7 million, up from $138.9 million the year before. Net operating income was $125.7 million, also showing steady growth. It reported $91 million in funds from operations (FFO), or $1.46 per unit, which is up from $1.30 a year earlier. FFO is a key metric for REITs, and rising FFO usually means more potential cash for distributions. Even better, adjusted funds from operations (AFFO) hit $88.4 million, or $1.41 per unit, compared to $1.22 the previous year. That's an impressive increase and speaks to Granite's efficiency and rising profitability. The AFFO payout ratio dropped to 60% from 67%, which shows the dividend is not just sustainable, it's well-covered. Another bright spot is the balance sheet. Granite finished the quarter with about $3.2 billion in total debt, but its leverage ratio sat at just 32%. That's low compared to many REITs, giving it room to grow or weather headwinds. It also repurchased nearly a million units under its buyback plan, spending $63.6 million at an average price of $68.30. That kind of buyback shows the company thinks its own stock is undervalued, and it's putting money behind that belief. Occupancy remained strong at 94.8%, with rental spreads of about 10% over expiring leases. This means Granite isn't just keeping its tenants, it's raising rents as leases renew. It completed over 736,000 square feet of leasing activity during the quarter, a healthy sign in any real estate market. Long-term leases and high-quality tenants help protect its cash flow, even in uncertain times. As of writing, Granite's stock was trading at around $67.23. It pays an annual dividend of $3.40, which gives it a yield of roughly 5.1%. That's a generous payout from a company with excellent financials and a defensive portfolio. Over time, those payments can compound, especially if reinvested. What's more, Granite is well-positioned for long-term growth. Demand for warehouses and logistics centres is only growing, thanks to shifts in global supply chains, rising e-commerce, and just-in-case inventory strategies. New construction for these types of buildings hasn't kept up with demand, especially near urban centres. That bodes well for Granite, as higher demand and limited supply usually mean better rental income and property values. So if you're sitting on $1,000 and wondering where to put it, Granite REIT deserves your attention. You're not just buying a stock, you're buying into a growing global portfolio of essential infrastructure. You're collecting income while you wait. And you're owning a piece of something that isn't going out of style anytime soon. The post The Smartest Canadian Stock to Buy With $1,000 Right Now appeared first on The Motley Fool Canada. Before you buy stock in Granite Real Estate Investment Trust, 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 Granite Real Estate Investment Trust 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 $21,345.77!* 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 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Amazon, Granite Real Estate Investment Trust, and Magna International. 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
Yahoo
27-05-2025
- Business
- Yahoo
The Smartest Commodity Stock to Buy With $1,400 Right Now
Written by Andrew Button at The Motley Fool Canada Are you looking for commodity stocks to invest a small sum – perhaps $1,400 – in? If so, the Toronto Stock Exchange (TSX) provides you with plenty of options to work with. Canada's economy is heavily resource based, having plenty of metals, oil, gas, and lumber companies. The biggest of them are usually publicly traded. The world consumes increasing amounts of resources with each passing year, and Canada has far more than it needs for its own purposes. So, TSX commodity stocks collectively have promise. In this article, I will explore one TSX commodity stock that is worth a buy today. Suncor Energy Inc (TSX:SU) is a Canadian energy company that is primarily involved in extracting, selling and refining crude oil. The diversified energy firm sells its own refined products at a network of gas stations called Petro-Canada. It is one of the biggest and most entrenched Canadian energy companies. When it comes to commodities, oil and gas are among the most reliable out there. With countless industry use cases (e.g., fuel, chemicals, asphalt etc.), oil has a steady source of demand outside of speculative activity. This makes it a generally more predictable market than that for other commodities whose speculative use cases make up a greater percentage of trading volume. There is some concern about oil someday becoming irrelevant and obsolete. These concerns are overblown for three reasons: The energy sources that will supposedly replace oil, such as nuclear and renewables, take a very long time to build out. This effectively removes such alternatives as a 'medium term' threat–though they'll likely negative impact demand over the very long term. Oil will probably always have some role as a backup fuel source (e.g., in generators) because renewables generally don't work unless the user has access to a working electric grid. Oil is the best known starting material for chemicals production and thus indispensable to industries like plastics and pharmaceuticals. While we will likely see some of oil's energy use replaced over the very long term, the commodity will probably always be used to some extent or another. This fact bodes well for Suncor's future prospects. In addition to selling a very valuable and indispensable commodity, Suncor operates other diversified business lines. These include refining, natural gas marketing, and gas stations. So, Suncor has some ability to remain profitable even in moderately weak oil markets. Suncor's profitability can be seen in its margins. In the trailing 12-month (TTM) period, it had a 59% gross margin, an 18% EBIT (operating income) margin, a 12% net margin, and a 16% free cash flow (FCF) margin. These are fairly high margins, suggesting that Suncor is a solidly profitable enterprise. Last but not least, Suncor Energy boasts a very cheap valuation. At today's prices, it trades at 9.4 times earnings, 1.3 times sales, and 1.4 times book. These multiples are low in the absolute sense, and also lower than those of the broader TSX. So, SU stock looks like a good value. The post The Smartest Commodity Stock to Buy With $1,400 Right Now appeared first on The Motley Fool Canada. Before you buy stock in Suncor Energy, 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 Suncor Energy 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 $21,345.77!* 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 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Andrew Button has positions in Suncor Energy. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025
Yahoo
24-05-2025
- Business
- Yahoo
The Smartest Contrarian Play to Buy With $2,400 Right Now
Written by Karen Thomas, MSc, CFA at The Motley Fool Canada The tariff wars and economic uncertainty have brought a lot of volatility to the market. This uncertainty has created an environment of fear for investors. Yet, some things have remained the same. In my view, the best contrarian play today is one of them. Without further ado, here's why Cineplex Inc. (TSX:CGX) is one of the smartest contrarian plays to buy now. First of all, as we would expect with contrarian stocks, Cineplex stock is cheap. This is a function of the fact that investors are skeptical. Therefore, they probably do not believe the analyst estimates that are out there. As a result, Cineplex stock is trading at a very low 11 times next year's expected earnings. Also, it's trading at a mere nine times expected earnings in 2027. While Cineplex has struggled a lot since the pandemic, there are many signs that point to a recovery for this entertainment company. Let's review this in the next section. Contrary to what many believe, although not as high as it used to be, the movie exhibition business is still seeing good demand. In the first quarter of 2025, box office revenue came in at 101.9 million. This compares to $156.5 million in the first quarter of 2019. For the full year 2024, box office revenue came in at $562.2 million versus $705.5 million in 2019. This represents 65% and 80% of pre-pandemic levels, respectively. Importantly, Cineplex has fully recovered the first quarter box office shortfall on a year-to-date basis. In fact, it currently stands at 105% of last year's box office. With strong content expected for the remainder of the year, so the company is expecting a strong box office performance in 2025. So, while we are clearly in a lower attendance world than in the pre-pandemic years, things are being done to take advantage of the premier Canadian positioning that Cineplex has in the exhibition industry. For example, new movie watching experiences such as VIP and 4-dx theatres are meant to counter weakness and draw viewers in. VIP cinemas offer in-seat service and comfortable, reclining seats. 4-dx is a multi-sensory experience that immerses us through motion, vibration, water, wind, and lighting effects. These experiences have allowed Cineplex to charge more for a movie, thusly increasing its margins. Beyond the movie exhibition segment, Cineplex is also involved in other businesses. They include the gaming industry, as well as the media business. In fact, in the company's first quarter of 2025, these businesses demonstrated strength that served to offset weakness in the movie exhibition business. The media segment (11% of revenue) posted a 32.9% increase in revenue, as media spending has begun to recover after a difficult period. And looking ahead, the growth in this segment is likely to continue. In fact, capacity utilization in this business remains quite low, so there's nice upside to be had. The location-based entertainment business (14% of revenue), offers multiple entertainment options under one roof. In this segment, revenues grew 10.5% to $38.1 million. This was a quarterly record positively impacted by two new locations that opened up during the quarter. This segment offers a business that offers high margin revenue and a more predictable operating environment given that it's not dependent on content. In conclusion, it is my belief that Cineplex stock is underappreciated and undervalued – and an excellent contrarian play. It has a dominant market share of roughly 80% in the movie exhibition industry in Canada, something that investors are undervaluing. Also, its location-based entertainment venues offer an entertainment experience that the younger generations can enjoy. Finally, Cineplex is taking advantage of its position in the entertainment industry to capture the attention of advertisers who are looking for access to large audiences for their ads. The post The Smartest Contrarian Play to Buy With $2,400 Right Now appeared first on The Motley Fool Canada. Before you buy stock in Cineplex, 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 Cineplex 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 $21,345.77!* 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 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Karen Thomas has a position in Cineplex. 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
