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Forget Air Canada: 5 Canadian Stocks to Buy Instead – The Motley Fool Canada

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Air Canada (TSX:AC) has been one of the most popular stocks in Canada since the pandemic began. Savvy long-term investors continue to see the major discount in share prices and recognize there could be an opportunity for recovery.

The stock faces a tonne of headwinds, though. So, with the current risk investors have to take on buying the stock, it’s actually reasonably priced. Currently, most analysts have an average target price of around $27 or $28. This gives Air Canada roughly 15% upside potential to its target price.

A 15% return isn’t horrible, but several Canadian stocks are far more attractive today. And when you consider just how much risk you have to take on for such a small potential return, it’s much better to pass on Air Canada.

Here are just five Canadian stocks offering investors far more potential than Air Canada today.

Parkland Fuel offers major recovery potential

Parkland Fuel (TSX:PKI) primarily refines, distributes, and markets fuel and other petroleum products across Canada and the United States.

With fuel demand impacted so severely by the pandemic, Parkland has seen a considerable impact on its business. Better margins have somewhat offset the decline in volumes.

Regardless, these are only short-term impacts. The stock, though, is still roughly 20% off its 52-week high. That’s an attractive discount for a quality long-term growth stock. And when you consider its monthly dividend yields 3.2% too, the stock is a much better option than Air Canada.

First Capital is considerably cheaper than Air Canada stock

First Capital REIT (TSX:FCR.UN) is one of the best real estate investments you can make. It’s a mixed-use REIT with retail, office, and residential assets. Unfortunately, the trust was impacted by the coronavirus pandemic, mostly with its retail locations.

However, this impact will only be short term, as First Capital assets are located in some prime locations. So, today’s heavily discounted stock price is extremely attractive.

First Capital is currently trading more than 30% below its 52-week high. That’s roughly double the return that Air Canada investors can expect from the stock today and with considerably less risk.

Freehold Royalties is a top buy today

Freehold Royalties (TSX:FRU) is one of the best dividend stocks you can find in the energy industry. On top of Freehold being a safer energy stock that’s great for dividend investors, it also offers significant capital gains potential as the entire energy industry recovers.

At current prices, the stock is roughly 15% off the average analyst target price. So, with the 3.5% dividend, investors can expect at least a nearly 20% return over the next year. I say “at least,” because as the situation with the economy gets better and energy continues to rebound, analysts will undoubtedly upgrade the stock.

Since November, the target price has already increased by more than 25% and should continue to grow as Freehold’s outlook improves. Therefore, with Air Canada offering a roughly 15% return and significantly more risk, Freehold is a much better stock to buy today.

CAE offers more potential than Air Canada stock

CAE (TSX:CAE)(NYSE:CAE) is the stock most similar to Air Canada on this list. While it’s not an airliner, CAE is a simulation company whose biggest segment is the airline industry.

By providing simulation technologies to the defence, healthcare, and aviation industries, CAE has been a rapid growth stock. The impact on the airline industry has undoubtedly had an impact on CAE.

However, these impacts are short term, and CAE is losing nowhere near the amount of cash Air Canada is losing.

With more long-term growth potential and a similar discount to the consensus analyst target price, CAE is clearly a better stock to buy than Air Canada today.

Corus Entertainment is extremely cheap

Lastly, Corus Entertainment (TSX:CJR.B) is a stock I’ve mentioned in the past for its incredible value. The company has been rallying consistently. However, it’s still well undervalued.

At current prices, the stock has a forward price-to-earnings ratio of just 7.1 times.

In my opinion, analysts are being cautious on the stock with their target prices. Yet the stock still offers investors a 20% return to the target. So, when you combine that with the ultra-safe 4.6% dividend, Corus is a much better option than Air Canada today.

In addition to these five value stocks, here is a top growth stock you may want to consider!

This Tiny TSX Stock Could Be the Next Shopify

One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting…
Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago – before it skyrocketed by 1,211%!
Iain and his team just published a detailed report on this tiny TSX stock. Find out how you can access the NEXT Shopify today!

Click here to discover how!


Fool contributor Daniel Da Costa owns shares of CORUS ENTERTAINMENT INC., CL.B, NV and FREEHOLD ROYALTIES LTD. The Motley Fool recommends FREEHOLD ROYALTIES LTD.

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Canada receives largest COVID-19 vaccine shipment to date | News – Daily Hive

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Canada has received its largest number of COVID-19 vaccine doses to date as February draws to a close.

At a press briefing on February 25, Major-General Dany Fortin said that 643,000 doses of Pfizer and Moderna’s vaccines have been distributed across the country this week alone.

Fortin said that a total of 440,000 doses of Pfizer’s vaccine would be delivered each week in March, which will round out the company’s first-quarter commitment of 4 million doses.

Moderna, which sends vaccines to Canada every three weeks, is expected to deliver 466,000 doses the week of March 8, and another 846,000 doses the week of March 22.

These next two deliveries will complete the company’s first-quarter commitment of 2 million doses.

“This is all good news for Canadians who are hoping to get vaccinated,” he said. “As we head into spring, we are collectively gearing up for what we call the ramp-up phase.”

Fortin revealed that Pfizer has begun to finalize weekly shipment numbers for the second quarter of the year.

The company is expected to send approximately 769,000 vaccine doses each week for the first two weeks of April.

While numbers for subsequent weeks are still being confirmed, Fortin said a total of 10.8 million Pfizer doses should arrive in Canada between April and June.

The country is still working with Moderna to finalize the company’s shipment dates and dosage numbers for the second quarter.

Dr. Howard Njoo, Canada’s deputy chief public health officer, said that 2.9% of the country has now received at least one dose of a COVID-19 vaccine, and 1.1% have been given two doses.

“We are on track to have [a] significant increase into the spring, and again into the summer,” Fortin said.

“The projection is that we have seen 88 million vaccines, of both approved products, in-country by September.

To date, 1,682,106 doses of approved COVID-19 vaccines have been administered across Canada.

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Why rising bond yields challenge stocks and the Fed – CNBC Television

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  1. Why rising bond yields challenge stocks and the Fed  CNBC Television
  2. Fed Chair Jerome Powell says money printing doesn’t lead to inflation  Kitco NEWS
  3. US stocks rally as Powell soothes traders’ nerves  BNN
  4. Inflation Is Uncontainable But Not Inevitable  Bloomberg
  5. Fed Chairman Powell Helps the Stock Market But Won’t Discuss Deficit  Bloomberg
  6. View Full coverage on Google News



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Here We Go Again: Why GameStop Stock Is Soaring Today – The Motley Fool Canada

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The top indexes in the United States were down broadly in mid-morning trading on February 25. However, a handful of “meme stocks” were on the run again. In late January, the investing world was swept up in the reddit-fueled GameStop (NYSE:GME) craze. Its shares fell precipitously in early February, punishing those that bought late into the frenzy. Shares of GameStop were up nearly 50% in mid-morning trading today. What is behind this latest surge?

The top “meme stock” still has life

On Tuesday, Bloomberg News reported that GameStop’s chief financial officer Jim Bell was pushed out to make way for an executive with a vision more in line with Ryan Cohen. Cohen is an activist investor on the board and the co-founder of online pet-food retailer Chewy.com. His addition to the board sparked the big rush to GameStop stock.

The r/WallStreetBets board saw so much traffic that it went down after trading halted. GameStop was not the only “meme stock” to benefit from this social media-powered surge. We saw a handful of the same names putting together a solid mid-week spike. AMC Entertainment, which has suffered mightily in the cinema space during the pandemic, was up 10% in late-morning trading on February 25. Meanwhile, BlackBerry had failed to pick up any significant momentum.

Is there any reason to consider GameStop as a long-term investment?

Earlier this month, I’d suggested that investors should look elsewhere in the promising video game space. GameStop has been an amusing roller-coaster ride, but investing on the whims of a social media mob is usually not a recipe for success. More importantly, GameStop is in a tough position as brick-and-mortar retail looks to decline even further in the years ahead. It will need to dramatically reshape its business model to have a chance in this new economy.

Here are some stocks I like better than GameStop right now

I’d also suggested that investors may want to look at Cineplex (TSX:CGX). Canada’s top cinema operator has also struggled mightily during the pandemic. Indeed, movie theatres have barely been able to operate commercially over the past year. Still, shares of Cineplex have climbed 60% in 2021 so far. There are high hopes for a rebound in this industry as the economy reopens.

Cineplex cinemas will reopen in Ottawa and Cornwall this week. Its shareholders can look forward to a further return to regular operations in the weeks and months ahead. A flurry of box office draws that have been delayed have the potential to thrust Cineplex back to normalcy. GameStop’s business, however, does not have high hopes as currently constructed.

Copper Mountain Mining (TSX:CMMC) is a top base metals mining company in Canada. Copper and other commodities have erupted in late 2020 and early 2021. Shares of Copper Mountain Mining have climbed nearly 80% in the year-to-date period. The stock is up almost 500% from the prior year. Instead of betting on “meme stocks” like GameStop, investors can hop on the base metals bull run. This has a good shot to continue into the rest of 2021, as the global economy rebounds.

Speaking of stocks I’d buy over GameStop…

This Tiny TSX Stock Could Be the Next Shopify

One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting…
Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago – before it skyrocketed by 1,211%!
Iain and his team just published a detailed report on this tiny TSX stock. Find out how you can access the NEXT Shopify today!

Click here to discover how!


Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. David Gardner owns shares of GameStop. The Motley Fool recommends BlackBerry, BlackBerry, and CINEPLEX INC.

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