Investing in the stock market isn’t about taking unnecessary risks—it’s about making informed decisions that can yield steady returns over time. Even with less than $1,000, you can start building a robust investment portfolio. By selecting high-quality stocks with strong fundamentals and long-term growth prospects, you can set yourself up for financial success. Despite recent challenges in identifying stocks with significant upside potential, opportunities still exist if you know where to look. This article highlights two no-brainer Canadian stocks you can buy with less than $1,000 to kickstart your investment journey.
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New Gold Stock: A Strong Contender
) has been outperforming the broader market significantly over the past two years. This intermediate gold mining company operates primarily in Canada, with key assets including the Rainy River and New Afton mines. With a market cap of $2.7 billion, New Gold’s stock trades at $3.38 per share, reflecting a substantial 76% rally year to date.
Operational and Financial Performance
New Gold’s impressive stock performance can be attributed to its consistently improving operational and financial results. In the second quarter of 2024, the company produced 68,598 ounces of gold and 13.6 million pounds of copper. Although there was a year-over-year decline in gold output, cost control measures and stronger commodity prices drove a 18.3% increase in quarterly revenue to US$218.2 million. Additionally, the company saw a remarkable 46.6% year-over-year increase in adjusted net quarterly profit, reaching US$17 million.
Future Growth Prospects
New Gold is focused on growth projects that are expected to enhance its production capacity and financial performance. At the Rainy River mine, the company anticipates achieving the first ore from the underground main zone by year-end, with plans to ramp up to 5,500 tonnes per day by 2027. Similarly, the New Afton mine’s C-Zone project is expected to begin commercial production in the latter half of 2024. These initiatives are likely to drive further growth and potentially increase shareholder value.
Air Canada Stock: A Potential Underdog
) has faced a different trajectory. Despite a robust financial recovery post-pandemic, the airline’s stock has not seen any appreciation in 2024. In fact, its share prices have been on a downward trend since 2020, making it appear undervalued given its long-term growth potential. Currently, Air Canada’s market cap stands at $5.5 billion, with its stock trading at $15.33 per share, reflecting an 18% loss year-to-date.
Recent Financial Performance
Over the past year, Air Canada’s revenue rose by 9.6% year-over-year to $22.3 billion, driven by improving air travel demand. The airline has also successfully doubled its adjusted earnings to $4 per share. The company’s strategy during the COVID-19 pandemic included discontinuing less profitable routes and focusing on high-demand markets. This streamlined approach has positioned it well for future growth.
Future Growth Opportunities
As international travel demand strengthens, Air Canada is preparing to reintroduce service to several international destinations. This expansion is expected to accelerate financial growth and potentially drive the stock price higher. Given its current undervaluation and growth prospects, Air Canada represents a promising investment opportunity for those looking to capitalize on the recovery of the travel sector.
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Investing in the stock market, even with a modest amount like $1,000, can be a rewarding endeavor if you make informed decisions. Both New Gold and Air Canada present compelling opportunities for investors. New Gold’s strong operational performance and growth projects offer potential for steady returns, while Air Canada’s current undervaluation and expanding international presence make it a stock to watch. By carefully selecting stocks with solid fundamentals and growth potential, you can start building a strong investment portfolio today.
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