In this article, we discuss the 5 best Canadian stocks to buy and hold. If you want to see more stocks in this selection, go directly to 12 Best Canadian Stocks to Buy and Hold.
5. Brookfield Asset Management Inc. (NYSE:BAM)
Number of Hedge Fund Holders: 39
Brookfield Asset Management Inc. (NYSE:BAM) is a Canadian investment management company. In November, Brookfield Asset Management Inc. (NYSE:BAM) announced that it has purchased NIKE, Inc. (NYSE:NKE) supplier Trimco Group, a Hong Kong-based manufacturer of garment labels, in a deal worth up to $900 million.
In the third fiscal quarter, Brookfield Asset Management Inc. (NYSE:BAM) reported revenue of $23.4 billion, up 21.7% compared to the revenue over the same period last year.
The number of hedge funds tracked by Insider Monkey owning stakes in Brookfield Asset Management Inc. (NYSE:BAM) grew to 39 in Q3 2022, from 34 in the previous quarter. The collective value of these stakes is nearly $2 billion. It is one of the top Canadian stocks to buy and hold according to elite hedge funds.
4. Canadian Pacific Railway Limited (NYSE:CP)
Number of Hedge Fund Holders: 41
Canadian Pacific Railway Limited (NYSE:CP) is a transportation firm based in Canada. It offers rail and intermodal transportation services over a network of approximately 13,000 miles. On November 28, Deutsche Bank analyst Amit Mehrotra upgraded Canadian Pacific Railway Limited (NYSE:CP) stock to Buy from Hold with a $98 price target. The analyst is confident on the outlook for transportation equities in 2023.
Given its scale, the company has shown strong profits. In the third fiscal quarter, Canadian Pacific Railway Limited (NYSE:CP) reported an EPS of C$1.01. Its revenue for the quarter came in at C$2.31 billion, up 19.1% year over year and ahead of Wall Street estimates by C$40 million.
Canadian Pacific Railway Limited (NYSE:CP) was a part of 41 hedge fund portfolios in Q3 2022, as per Insider Monkey’s data. The stakes owned by these hedge funds have a total value of over $7.1 billion. TCI Fund Management was the company’s leading stakeholder in Q3.
3. Canadian National Railway Company (NYSE:CNI)
Number of Hedge Fund Holders: 42
Canadian National Railway Company (NYSE:CNI) is the longest railway system in North America. It provides rail, intermodal, trucking, business development, and supply chain services. Canadian National Railway Company (NYSE:CNI) reported another solid quarterly performance in September 2022. The company reported an EPS of C$2.13 and generated a revenue of C$4.51 billion, up 25.6% year over year and ahead of Wall Street estimates by C$190 million. Free cash flow for the first nine months of 2022 was roughly C$3 billion, up C$2.03 billion for the same period last year.
Ken Hoexter, an analyst at BofA, maintained a Buy recommendation on Canadian National Railway Company (NYSE:CNI) stock on November 29 after the company named Edmond Harris as its Executive Vice-President and Chief Operating Officer. He also increased his price target from $131 to $140.
As of December 2, 2022, Bill & Melinda Gates Foundation Trust is the largest shareholder in Canadian National Railway Company (NYSE:CNI) in our database and holds a stake worth more than $5.9 billion.
2. Suncor Energy Inc. (NYSE:SU)
Number of Hedge Fund Holders: 45
Suncor Energy Inc. (NYSE:SU), based in Calgary, Alberta, is an integrated energy firm. Suncor Energy Inc. (NYSE:SU) recently reaffirmed its FY22 production guidance and is one of the best Canadian stocks to buy and hold on our list.
Given its financial stability and expansion prospects, the company has the potential to grow earnings in the long term. On November 16, Suncor Energy Inc. (NYSE:SU) declared a 10% hike in its quarterly dividend to C$0.52 per share. The company’s dividend yield on December 7 came in at 5.06%.
According to the third quarter database of Insider Monkey, 45 hedge funds were bullish on Suncor Energy Inc. (NYSE:SU), with combined stakes worth about $2 billion.
1. Shopify Inc. (NYSE:SHOP)
Number of Hedge Fund Holders: 62
Shopify Inc. (NYSE:SHOP), with more than 1,700,000 businesses in approximately 175 countries, is a multinational e-commerce company. With the use of the company’s software, retailers may create, manage, and market their goods through a variety of channels, such as social media, physical retail locations, marketplaces, web and mobile storefronts, and physical retail locations. It is headquartered in Ottawa, Ontario. On October 27, the company posted earnings for the third quarter of 2022. The revenue over the period was $1.37 billion, up 22.3% compared to the revenue over the same period last year.
On November 29, the e-commerce platform announced sales of $7.5 billion from independent businesses worldwide over a record-breaking Black Friday-Cyber Monday weekend, up 19% from last year. This year, more than 52 million customers worldwide made purchases from brands powered by Shopify Inc. (NYSE:SHOP), an increase of 18% from the previous year. It is one of the premier Canadian stocks to buy and hold.
At the close of the third quarter of 2022, 62 hedge funds held stakes in Shopify Inc. (NYSE:SHOP). The total value of these stakes amounted to $2.4 billion. As of December 5, ARK Investment Management is the largest investor in Shopify Inc. (NYSE:SHOP) and has a position worth $391.5 million.
You can also take a peek at 10 Best ASX Stocks To Buy and 15 Most Creative Companies in the World.
