5 Canadian Hot Stocks To Buy This May!

The Toronto Stock Exchange’s composite index witnessed an all-time high this year after nosediving in March 2020. We explore five hot stocks, all priced under C$55 apiece, that could be the top picks of the month.

This diversified set of stocks belongs to the consumer, telecom, healthcare, and financial industries. These companies have played a vital role amid the COVID-19 pandemic, some offering essential services. Have they replicated their performance in the equity market as well? Let us look at their stock performances:

Dollarama Inc (TSX:DOL)

The leading Canadian consumer stock has been running its businesses through lockdowns since mid-March 2020. The current stock price is C$ 55.4 apiece. The grocery stock has bounced back by 35 per cent against its 52-week low of C$ 41.12 apiece (Dated May 14, 2020).

Dollarama boosted its long-term grocery store target to 2,000 retail locations across Canada during this decade. The 17-billion market cap company posted 30 per cent in the past one year, guided by its yearly sales growth, making it an attractive buy.

WELL Health Technologies Corp. (TSX: WELL)

The technology-backed healthcare company actively operates in digital health services and retails COVID-19 antibody tests across Ontario. The stock is trading at C$ 7.1 apiece.

It has soared by almost 217 per cent compared to its 52-week low of C$ 2.24 per share (recorded on May 04, 2020). It has returned 194.6 per cent in the past one year and surpassed the TSX Composite Index in the same period.

The health-tech firm generates maximum revenue from its health-related online products.

HEXO Corp. (TSX: HEXO)

The cannabis firm commercializes packaged pot goods under its brands, such as Up Cannabis and Original Stash. Its stock price is C$ 8.31 apiece.

It has swelled by 78 per cent and beaten S&P/TSX Pharmaceuticals Index this year. The cannabis stock recorded a 184.6 per cent surge in the past one year.  

HEXO sells most of the marijuana-infused goods in the Quebec region, as per its recent earnings release.

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Laurentian Bank of Canada (TSX:LB)

The mid-cap bank has surpassed its peers in terms of its equity growth. The lender’s stock grew 42 per cent in the past year and outperformed the S&P TSX Diversified Banks Index relatively, as per Refinitiv data. It is currently trading at C$42.61 a pop.

The lender’s stock price has surged 37 per cent and maintained its bull run this year.

The bank posted a positive top line in the first fiscal quarter, propelled by the enhanced funding and robust pre-payments for mortgages.

Telus Corporation (TSX:T)

One of the three largest telecom firms has been counting big on its 5G network expansion. Its stock price is C$ 25.7 apiece.

The stock yielded 13 per cent in the past year in line with its peers and beaten the S&P/TSX Wireless Telecommunication Services Index relatively. It has a market of C$ 34.65 billion.

Bay Street analysts are bullish on this stock in the wake of the upcoming spectrum distribution in June. Thus, the 5G stock could deliver good returns this year.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.