Opinion: The three best Canadian stocks to buy in October

The smartest investors aren’t afraid to add quality Canadian stocks, even if those stocks or the broader market are trending strongly upwards. Averaging is an effective investment strategy that many investors fail to recognize. The fact is that quality companies tend to spend most of their time near 52-week highs.

Continue to increase your winning shares

Investing in high quality stocks means that you are investing in stocks that have already appreciated and should continue to appreciate in the future. These companies have strong balance sheets, great management teams, and excellent products/services with strong growth opportunities.

Long-term investors want to own shares of companies that have consistently performed both as a company and as a stock. Long-term winners will likely continue to win. If you want to add long-term buy-and-hold winners, you can add three Canadian stocks in October.

Colliers: There is still further growth ahead

International Colliers Group (TSX:CIGI) has many of the characteristics of a long-term quality stock. Its shares have delivered a 20% annualized total return over the past 10 years. The long-term returns were even better.

Colliers has used a market consolidation strategy to become a global player providing commercial real estate services. Although Colliers is best known for its commercial brokerage business, it now has significant divisions in engineering, design, project management and asset management. Over 70% of its revenue comes from recurring services!

Real estate transaction activity has been weak for several years. However, as interest rates fall, the commercial real estate market is starting to move. This will start to add to Colliers’ profits in the coming quarters.

In 2024, Colliers will grow by 25%. However, thanks to a torrent of new acquisitions, the company could continue to see significant earnings growth in the coming years.

Couche-Tard: Winning companies create winning stocks

There was a lot of media attention around this case Couche-Tard’s Dining (TSX:ATD) are trying to take over the 7-11 retail chain. Unfortunately, the company’s stock has dropped almost 11% since then.

This is a large acquisition with high risk, so the market has reasons to be concerned. However, Couche-Tard has a strong track record of operating and acquiring convenience-focused businesses. If a deal goes through, Couche-Tard (if any company) can make it work. If this doesn’t happen, we won’t lose much.

Couche-Tard certainly had a difficult year as consumers (especially at the margins) cut back on their discretionary spending. The good news is that M&A conditions have improved and Couche-Tard is starting to make some profitable long-term deals. It has just added another portfolio of 260 stores in the US Midwest.

With stocks falling for no good reason, it seems like a great time to add.

Trisura: Insurance up

Trisur Group (TSX:TSU) is a high-quality stock that provides a significant boost to operational and financial growth. Trisura operates a small but growing specialized insurance and reinsurance fronting platform. It operates in Canada and the USA

Historically, Trisura stock has experienced exceptional growth (up 470% over the last five years). However, the share price has stagnated as earnings have equaled fundamental valuations.

Trisura’s pricing has become very attractive compared to other specialty insurance companies. Likewise, the company has made significant investments to expand in the US, where it has significant market opportunities. It may just be early rounds before these shares rise.