While Canada says farewell to prime minister Trudeau it also faces turbulent times with its relations with its southern neighbour. It will require any new government to steer a tricky course, but for investors things could be even more challenging.
That said there are still plenty of Canadian stocks that could reward investors regardless of tougher tariffs and hard talk with Washington DC. Typically these will be companies with strong domestic sales or substantial revenues from outside the country. Or they could be companies that the US simply can't do without, and certainly not at a 25% mark-up. Ultimately these bets need to look both tariff-proof and recession-proof.
Here are five we think are still worth looking at while we wait for the dust to settle. I've included the 12 month performance of the stock.
WELL Health Technology [TSX:WELL] +33.17%
A practitioner-focused digital healthcare company already operating in the US and without physical product, it provides a broad range of healthcare services. It owns proprietary software which is sold to medical clinics and health practitioners. WELL sits at the cutting edge of the increased digitalisation of healthcare.
The stock has sold off a little since the end of the year, but its last numbers were very solid. Cash flow and balance sheet are both very strong. Expansion continues with 11 new clinics added in Canada since the start of February and it is now tracking almost 70 separate public sector opportunities in the Canadian market.
Cameco Corporation [TSX:CCO] -0.61%
Cameco Corp is a pretty self-explanatory bet for Canadian investors. The company is based in Saskatoon and is now rated as one of the top 10 stocks to buy in Canada according to billionaire investors. It is one of the biggest producers of uranium on the planet and is fully integrated into the critical nuclear fuel production cycle, including refining, conversion and fuel manufacturing. Cameco has the world's largest commercial uranium refinery at Blind River in Ontario.
Right now the world can't do without nuclear fuel and the US in particular needs friendly sources of uranium that are close to hand. The US imports a quarter of its uranium from Canada. I predict 25% tariffs on uranium will not last.
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