New Stocks to Invest in Canada [2024] | 3 Top Picks

Summary: Investing in relatively young stocks in Canada can be an exciting opportunity for fresh and seasoned traders. The Canadian stock market covers a diverse range of industries and sectors, providing ample options for investors to build a well-rounded and profitable portfolio. Whether you’re seeking high-growth stocks or focusing on more stable, dividend-paying companies for long-term savings, you can start investing on our recommended investment platform Interactive Brokers. 

Investing in the Canadian stock market

Before you begin your journey in Canadian investments, it’s essential to understand the various aspects of the stock market, from top-performing sectors to emerging industries. Additionally, recognizing the pros and cons of investing in new stocks and employing effective investment strategies will be crucial in achieving long-term success. 

Once you’re familiar with such important considerations, you’ll be better equipped to diversify your portfolio and monitor your investments productively, ensuring your financial pursuits in the Great White North are as profitable as possible.

Key points before you proceed

• Market research: Gain a comprehensive understanding of the Canadian stock market to make informed investment decisions;
• Know the stocks: Recognize the advantages and drawbacks of investing in new stocks, and develop effective investment strategies;
• Diversification: Diversify your investments by spreading your funds across multiple stocks to maximize returns and minimize risks in your portfolio.

Understanding the Canadian Stock Market 

There are several key economic sectors that you should be aware of when investing in the Canadian stock market: 

• Energy: Oil, gas, and other energy resources are crucial to the Canadian economy given the country’s rich natural resources deposits;
• Financials: Canada’s banking and financial sector is strong, with big players like the Royal Bank of Canada and Toronto-Dominion Bank dominating the scene;
• Commodities: Canada produces and exports various commodities, such as petroleum gases, refined petroleum oils, gold, and automobile parts or accessories;
• Technology: Many innovative companies like Shopify and BlackBerry are a part of Canada’s growing tech sector.

New stocks in Canada

There are several relatively new Canadian stocks that have been showing promising growth and stability to check out in 2024:

1. Lithium Royalty Corp (TSX: LIRC);
2. WELL Health Technologies (TSX: WELL);
3. Docebo (TSX: DCBO).

Lithium Royalty Corp

Lithium Royalty Corp (TSX: LIRC) is a lithium-focused royalty company that supplies raw materials for, as the company says, the electrification and decarbonization of the global economy. The company went public in March 2023, raising $150 million in what had been the largest Canadian IPO in almost a year.

What makes Lithium Royalty Corp. a potentially profitable investment is the world’s growing acceptance of and reliance on electric vehicles (EVs). Recently, the company acquired a royalty interest in the Case Lake lithium project, which is expected to produce lithium for use in EV batteries. As the project has attracted investing giants such as LG Energy Solution, some enthusiasm and hope for the company’s future growth is certainly not without basis. 

Lithium Royalty Corp stock price today

WELL Health Technologies 

WELL Health Technologies (TSX: WELL) is one of the leading healthcare technology providers in Canada. The company specializes in digital healthcare solutions to streamline administrative processes and increase overall efficiency. By merging innovative technology with healthcare services, the WELL Health Technologies team aims to create cutting-edge solutions for the rapidly evolving industry.

In recent times, WELL Health Technologies has experienced significant growth and had a market cap of $934 million in December 2023, just three years after its IPO. The company enjoys a growing presence in the healthcare sector, it has many investors optimistic about its stock.

WELL Health Technologies stock price today

Docebo

Docebo (TSX: DCBO)  is a leading provider of cloud-based learning management and artificial intelligence (AI) systems for delivering and managing online training programs for employees, customers, and partners. 

The company went public in October 2020, raising $60 million in its initial public offering, and its stock price more than doubled in the first few months of trading. Docebo reported a revenue of $170.51m in September 2023, which was a 27.48% year-over-year growth. Moreover, with some recent acquisitions, the company has put itself in an even more favorable position to profit from the dynamic and growing AI sector.

Docebo stock price today

New stocks to invest in Canada: Other emerging sectors

As the Canadian economy keeps diversifying, we can see several other emerging sectors gain prominence and attract investors’ attention. Some other new stocks to invest in Canada include:

Commerce 

The e-commerce industry in Canada has been growing rapidly in recent years, with online sales expected to reach $40.3 billion by 2025. This is not surprising since the COVID-19 pandemic accelerated the shift to online shopping, with many consumers preferring the convenience and safety of online shopping. 

The growth of the e-commerce industry has also created new opportunities for businesses, particularly small and medium-sized enterprises, to expand their customer base and reach new markets. However, the industry is not without its challenges, including competition, logistics, and cybersecurity risks, so be careful when researching new stocks in this sector.

Green energy

Canada is well-positioned to become a leader in the global shift towards renewable energy. The country has abundant natural resources, including wind, solar, and hydroelectric power, as well as a strong commitment to reducing greenhouse gas emissions. 

The Canadian government has set an ambitious target of achieving net-zero emissions by 2050, which will require significant investment in renewable energy infrastructure. The green energy industry is expected to create new jobs and stimulate economic growth, particularly in rural and remote communities. However, the transition to renewable energy will also require significant changes to the energy grid and regulatory frameworks, which might have an impact on emerging stocks.

Cannabis Industry

The legalization of cannabis for recreational use in Canada in 2018 created a new industry that is still in its early stages of development. Naturally, the industry has faced some challenges, including supply chain issues, regulatory hurdles, and competition from the black market. However, it has also created new opportunities for businesses and investors, particularly in the areas of cultivation, processing, and retail. 

The Canadian cannabis industry is expected to continue to grow as more consumers embrace cannabis products and as the regulatory environment becomes more favorable. Keep in mind, though, that the cannabis sector still faces challenges, like regulatory delays and supply issues. However, as the industry matures, it could present attractive investment opportunities for those interested in this emerging market.

New stocks to invest in Canada: Key takeaways

The Canadian economy is characterized by a number of growing industries, which gives investors plenty of options to choose from, no matter what sector they want to invest in. Moreover, plenty of choices also imply plenty of feasible investment strategies in regard to the funds you’re dealing with. That is, you can easily invest in stocks and diversify your portfolio even if you can only afford to invest small sums, such as $1,000 dollars. 

Of course, you can always allocate larger sums to various investments if you are more experienced and have a higher risk tolerance. If you are comfortable with such investment paths, you can read our guides on how to invest $10,000, $50,000, or even $100,000 dollars in Canada.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

FAQs about new stocks to invest in Canada 

What are the best new stocks to invest in Canada?

There are many attractive choices when it comes to young Canadian stocks you can invest in. Some of them include Lithium Royal Corp (TSX: LIRC), WELL Health Technologies (TSX: WELL), and Docebo (TSX: DCBO).

Where to find new stocks to invest in Canada?

You can find new stocks to invest in in Canada on online exchange platforms such as Interactive Brokers.

What are taxes like when investing in new stocks in Canada?

In Canada, 50% of all capital gained by investing can be taxed.