The Top Stocks to Buy With $6,500 Right Now

top TSX stocks to buy
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Written by Rajiv Nanjapla at The Motley Fool Canada

After a downturn over the previous three months, the S&P/TSX Composite Index is up around 6.1% this month. The Federal Reserve’s decision to keep its benchmark interest rates unchanged and signs of inflation easing has increased investors’ confidence, driving the equity markets higher. Amid improving investors’ confidence, here are three beaten-down stocks you can add to your TFSA (Tax-Free Savings Account) to earn superior tax-free returns.


Nuvei (TSX:NVEI) is one of the top performers this month, with its stock price rising by 40%. Its solid third-quarter performance and raising 2023 management guidance have increased investors’ confidence, thus driving its stock price. Its total volumes and revenue grew by 72% and 55%, respectively. Also, its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) margin expanded by 40 basis points to 36.3%.

Amid its upward momentum, Nuvei’s management has raised its guidance for this year. The mid-point of the company’s 2023 revenue and adjusted EBITDA guidance represent 40% and 22.7% year-over-year growth, respectively. Further, the company’s management hopes to grow its revenue at an annualized rate of 15-20% in the medium term while increasing its adjusted EBITDA margin to 50% in the long term.

Despite the recent increase in its stock price, the company still trades less than half its 52-week high. Meanwhile, its valuation also looks attractive, with its NTM (next 12-month) price-to-earnings multiple at 9.8, making it one of the top stocks to have in your TFSA.

Magna International

Another beaten-down Canadian stock that I am bullish on is Magna International (TSX:MG). The automotive spare parts manufacturer posted an impressive third-quarter performance earlier this month, with its revenue growing by 15% to $10.7 billion. Increased light vehicle production in North America and Europe drove its sales. Amid top-line growth, improvement in operational efficiency, and cost-cutting initiatives, the company’s adjusted EPS (earnings per share) increased by 32.7% to $1.46. The company also generated $797 million of cash from operations.

Amid its solid third-quarter performance, Magna International has raised its 2023 guidance. Further, the company’s financial position also looks solid, with an available liquidity of $4.52 billion and a healthy adjusted debt-to-adjusted EBITDA ratio of 2.02. The company trades at an attractive NTM price-to-earnings multiple of 11.3, making it an attractive buy.

WELL Health Technologies

Well Health Technologies (TSX:WELL) is my final pick. The digital healthcare company reported its third-quarter performance yesterday, with its revenue growing by 40.2% amid solid performances from its Canadian and U.S. patient services. The company had around 1.03 million patient visits and 1.58 million patient interactions during the quarter. Despite substantial sales growth, its adjusted gross margin declined from 53.1% to 46.1%. Also, the company’s adjusted net income declined by 13.5% to $12.8 million.

After reporting its third-quarter performance, WELL Health’s management has raised its 2023 revenue guidance. Now, the management expects its 2023 revenue to be between $755-$765 million. Meanwhile, the company has launched “WELL AI Decision Support” in partnership with HEALWELL AI. The platform would aid healthcare providers in the early diagnosis of diseases.

The company has a compelling pipeline of support tools that could help healthcare providers make decisions. Given these growth initiatives and its continued acquisitions, the management is confident of achieving $900 million in sales in 2024. So, given its high-growth prospects and a cheaper NTM price-to-earnings multiple of 12.7, I am bullish on WELL Health.

The post The Top Stocks to Buy With $6,500 Right Now appeared first on The Motley Fool Canada.

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Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nuvei. The Motley Fool recommends Magna International. The Motley Fool has a disclosure policy.